NATICK, Mass. - Allurion Technologies, Inc. (NYSE: ALUR), a healthcare company focused on obesity treatment solutions, has launched a public offering of common stock and warrants with an aim to raise up to $20 million.
The announcement was made on a recent Wednesday, indicating the company's intentions to expand its financial resources for clinical trials, commercial sales, research and development, as well as for general corporate purposes.
The offering includes common stock shares, par value $0.0001 each, and warrants to purchase additional shares. Investment banks Jefferies and TD Cowen are serving as the joint book-running managers for the offering, with Roth Capital Partners acting as the co-manager. The underwriters have been granted a 30-day option to purchase up to an additional 15% of the securities offered in the event of over-subscription.
Concurrently with the public offering, Allurion has indicated a private placement of a newly created series of preferred stock, Series A convertible preferred stock, and private placement warrants. RTW Investments has expressed interest in purchasing up to $3 million of the securities in both the public offering and the private placement. However, the final allocation to RTW is not guaranteed, as their indication of interest is not binding.
The completion of the private placement is contingent upon the closure of the public offering. The securities involved in the private placement are exempt from registration under the Securities Act of 1933, as amended, and will not be registered at the time of sale.
Allurion's public offering is made by means of a written prospectus, which is obtainable from the investment banks managing the offering. The offering is subject to a registration statement filed with the Securities and Exchange Commission (SEC), which, at the time of the announcement, had not yet become effective.
The company's primary product is the Allurion Program, featuring the Allurion Gastric Balloon, a swallowable weight loss device, and the Allurion Virtual Care Suite, which provides a range of support tools for both patients and healthcare providers.
The information for this article is based on a press release statement from Allurion Technologies, Inc.
In other recent news, Allurion Technologies has seen significant developments. The healthcare company recently reported mixed Q1 2024 results, with revenue increasing by 14% from the previous quarter to $9.4 million, but showing a decrease of 33% from Q1 2023.
Procedural volumes and new app users have seen significant growth, with a 22% increase since the last quarter and a 12% increase year-over-year. Allurion also managed to cut operating expenses by 43%, leading to a 62% reduction in cash burn.
In addition to financial results, Allurion named Ojas A. Buch as its new Chief Operating Officer. Buch, who has 25 years of experience in the healthcare industry, will be leading the company's operations across several key departments. His previous roles include leadership positions at GE Healthcare, Philips, and most recently as President of PENTAX Medical – Americas.
In other company developments, Allurion has successfully closed a $48 million convertible senior secured note financing. This move, along with the launch of its virtual care suite in the US and the establishment of full reimbursement partnerships with the NHS in the UK, positions Allurion for future growth. These are recent developments that highlight the company's strategic adjustments and operational improvements.
InvestingPro Insights
Allurion Technologies, Inc. (NYSE: ALUR), currently seeking to bolster its financial position through a public offering, shows a mix of strengths and challenges according to recent data from InvestingPro. With a market capitalization of $89.66 million, the company is relatively small, which could offer higher growth potential but also comes with higher risk. Despite a notable gross profit margin of 76.32% for the last twelve months as of Q1 2024, Allurion's revenue has declined by 25.6% over the same period, highlighting the need for the company to stabilize its revenue streams.
InvestingPro Tips reveal that while Allurion has shown an impressive stock return over the last week, with a 76.42% increase, it's also been a volatile year for the company, with significant price fluctuations and a 75.06% drop in its one-year total return. This volatility is reflected in the stock's tendency to move inversely to market trends.
Moreover, Allurion is not expected to be profitable this year, and its short-term obligations currently exceed its liquid assets. For investors considering participating in the offering, these factors are crucial to understanding the company's financial health and risk profile.
For those looking to delve deeper into Allurion's financials, InvestingPro provides additional insights and metrics on the company's performance. With the use of the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these exclusive tips. There are currently 14 additional InvestingPro Tips available for Allurion, which can provide a comprehensive analysis for investors considering this healthcare innovator.
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