The NYSE notified Allurion that its stock’s average closing price fell below $1 per share over 30 consecutive trading days ending Aug. 8. This notice does not result in the immediate delisting of the company’s common stock from the NYSE.
Allurion plans to notify the market in a timely manner that it intends to cure the stock price deficiency. It expects to return to compliance with the applicable continued listing standards. The company can regain compliance at any time within a six-month cure period following receipt of the notice.
NYSE requires that, to regain compliance, the company must have a closing share price of at least $1 and an average closing share price of at least $1 over the 30-trading-day period ending on the last trading day of the applicable calendar month during the six-month period.
Allurion said it intends to remain listed on the NYSE and take into account all available options to regain compliance. Those options could include a reverse stock split. NYSE rules also provide for an extension to the six-month cure period. The notice has no immediate impact on the listing of the company’s common stock. Allurion said it anticipates no impact to its ongoing business operations or reporting requirements with the SEC.
Natick, Massachusetts-based Allurion develops an AI-powered gastric balloon for weight loss. The swallowable balloon requires no surgery, endoscopy or anesthesia. Once swallowed, the balloon fills and remains in the stomach for approximately four months before self-emptying and passing out naturally. The company recently ran into issues abroad, where it had to pull its balloon from the market in France earlier this month.
