Allurion Technologies, a company focused on obesity treatment, announced a registered direct offering of 1,240,000 shares of common stock at $6.00 per share, raising approximately $7.4 million before expenses. Concurrent with the offering, Allurion will issue warrants for an equal number of shares at the same exercise price, subject to shareholder approval for repricing existing warrants. The company plans to allocate the proceeds toward working capital and general corporate purposes.
This capital infusion is crucial for Allurion as it navigates a competitive weight-loss market increasingly influenced by GLP-1 drugs. Strengthening the company’s financial position allows for greater flexibility in research and development, particularly as Allurion continues its clinical studies, including those combining its gastric balloon with GLP-1 agonists. This funding could also be instrumental in supporting commercialization efforts for the Allurion Program, especially considering the Allurion Gastric Balloon is still investigational in the United States.
The offering involves a registered direct placement with institutional investors and a concurrent private placement of warrants. Roth Capital Partners is acting as the exclusive placement agent. Closing is expected around January 27, 2025, contingent upon customary closing conditions and shareholder approval of warrant repricing. The offering leverages an existing shelf registration, streamlining the process.
This financing provides Allurion with resources to advance its mission of combating obesity. The company’s ability to execute on its clinical development and commercialization strategy, particularly in the US market, will be key to its long-term success. The impact of ongoing clinical trials and the evolving competitive landscape will significantly influence Allurion’s future prospects.
Jon Napitupulu is Director of Media Relations at The Clinical Trial Vanguard. Jon, a computer data scientist, focuses on the latest clinical trial industry news and trends.
