ALLURION TECHNOLOGIES, INC.

ALLURION TECHNOLOGIES, INC. Material Event - NYSE Delisting Notice

Let's get straight to the point about what's happening with Allurion Technologies, Inc., the company behind the swallowable weight-loss balloon. This isn't just financial jargon; it's about the company's future and your investment.

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1. Event Description (what happened)

Allurion Technologies, Inc. received a "Delisting Notice" from the New York Stock Exchange (NYSE). This notice warns that the NYSE may remove the company's common stock because it no longer meets continued listing standards. Specifically, Allurion failed to meet a key rule: companies must maintain either:

• At least $50 million in "stockholders' equity" (the company's assets minus its liabilities, representing the owners' stake), OR
• A total market value (how much the company is worth based on its stock price) of at least $50 million, averaged over 30 consecutive trading days.

2. Event Date/Timeline

Allurion announced the delisting notice on March 2, 2024, and filed an 8-K report with the SEC on March 4, 2024, to disclose this significant event. This development was not entirely unexpected; Allurion had received a prior warning on August 29, 2023. The company typically has 10 business days from the notice date to appeal to a special NYSE committee.

3. Financial Impact

The company's failure to meet the NYSE's minimum financial thresholds is the primary financial impact. The company didn't provide specific numbers in their filing about how much they fell short on stockholders' equity or market value, so it's hard to gauge the exact size of the problem.

To address its financial position, Allurion is pursuing several initiatives:

• Debt-for-Preferred Stock Swap: Allurion announced a deal with its largest creditor to convert some debt into preferred stock. They also didn't detail the exact amount of debt converted or how much it's expected to boost their stockholders' equity.
• Warrant Inducement Transaction: Allurion recently completed a transaction to encourage warrant holders to exercise their warrants. And while they completed this, the filing didn't spell out the specific financial benefits, like how much cash it brought in or debt it reduced.
• Capital Raising: Allurion is engaging with existing lenders and shareholders, exploring options to raise additional capital. This could lead to future financial implications, including potential dilution for existing shareholders.

If delisted, the stock would likely move to less prominent "over-the-counter" (OTC) markets. This typically leads to reduced liquidity and potentially a lower, more volatile stock price, and makes accessing capital significantly more difficult and expensive.

4. Impact Assessment (who/what is affected)

This delisting notice carries serious, broad implications:

• Current Shareholders: Investors face the most direct impact, including potential stock price volatility, reduced liquidity, and capital loss risk.
• The Company Itself: Allurion faces immense pressure to regain compliance, manage its public image, and secure its financial future. Its credibility and visibility are at risk, potentially damaging its reputation and investor trust.
• Employees: Day-to-day operations may not immediately change, but the long-term stability and attractiveness of stock-based compensation are at risk.
• Customers/Patients: While the product itself remains unaffected, financial instability can raise questions about the company's long-term viability and ability to support its offerings.

5. Company Response & Path Forward

Allurion is not yet delisted and actively addresses the situation:

• Appeal Process: The company plans to appeal the decision to a special NYSE committee. The stock will continue to trade on the NYSE during this review period, provided Allurion meets other listing requirements. The committee's decision timeline varies.
• Financial Restructuring Efforts: Beyond the debt-for-preferred stock swap and warrant inducement transaction, Allurion actively explores options to raise additional capital.
• Company Strategy & Outlook: What's missing from the filing, however, are the specifics on their broader business strategy – things like how they plan to become more efficient, cut costs, grow revenue, or what they think about their competition. These are crucial details for investors looking at long-term viability.

6. Key Takeaways for Investors

This is a high-stakes period for Allurion. Investors should consider:

• Delisting Risk: The appeal might not succeed, potentially leading to eventual delisting and a move to the OTC market.
• Dilution Risk: Capital raising or debt restructuring efforts could significantly dilute existing shareholders' holdings, impacting their value.
• Operational Challenges: Even if Allurion avoids delisting, it must address underlying financial issues (e.g., sustained losses) through effective business strategy and execution.
• Continued Volatility: Expect significant price swings as news emerges regarding the appeal, financial restructuring, or operational performance.
• Liquidity Risk: If delisted, selling shares could become much more difficult and potentially at a lower price.

For Investors: Closely monitor the NYSE appeal's outcome, the specific financial impacts of Allurion's restructuring efforts (quantified in future filings), and the company's progress on its operational and growth strategies. Reviewing their latest quarterly and annual reports (10-Q and 10-K filings) is essential to understand their financial health beyond this specific delisting notice.