In a recent shareholder meeting, Allurion Technologies, Inc., a medical device company specializing in surgical and medical instruments, saw the re-election of three Class I directors and the approval of several significant proposals. The meeting, held on Monday, was detailed in an 8-K filing with the SEC.
According to InvestingPro data, the company's stock has experienced significant pressure, declining over 91% year-to-date to $0.31, while maintaining impressive gross profit margins of 73%.
The re-elected directors, Shantanu Gaur, M.D., Krishna Gupta, and Nicholas Lewin, will serve on the company's Board of Directors until the 2027 annual meeting. The voting results showed a strong favor for Dr. Gaur and Lewin, with Gupta receiving a lesser but adequate number of votes for re-election.
Additionally, shareholders approved an amendment to the company's Amended and Restated Certificate of Incorporation to enact a reverse stock split. The exact ratio will range from 1-for-10 to 1-for-25, to be determined by the Board.
The issuance of shares of common stock upon conversion of the Notes, in compliance with the New York Stock Exchange’s Listing Rule 312.03(b)(i), was also approved, as was the issuance of shares upon conversion of Series A Preferred Stock and exercise of Private Placement Warrants.
Demonstrating confidence in the company's financial oversight, shareholders ratified the appointment of Deloitte & Touche LLP as Allurion's independent registered public accounting firm for the fiscal year ending December 31, 2024.
The proposals, initially outlined in a Proxy Statement filed on November 8, 2024, did not require further action to solicit additional votes, as there was sufficient support for the proposals regarding the reverse stock split and share issuances.
The decisions made at this meeting are based on the information provided in the SEC filing.
In other recent news, Allurion Technologies received approval from the New York Stock Exchange for its plan to regain compliance with listing standards, providing the medical technology company until March 2026 to meet the NYSE's Minimum Market Capitalization Standard. Despite facing financial challenges, Allurion maintains a gross profit margin of 73% and is committed to enhancing shareholder value.
In other developments, the company's third-quarter 2024 revenue was reported at $5.4 million, a decrease from the previous year, leading to a revision of its full-year 2024 revenue guidance to fall between $30 million and $35 million.
TD Cowen maintains a Buy rating for Allurion, acknowledging the company's strategic plan to improve its commercial performance and significantly cut operating costs. However, Chardan Capital Markets downgraded Allurion's stock from Buy to Neutral due to a pattern of underwhelming business performance.
Allurion is also planning to cut its operating expenses by half and reduce its workforce by 50% by 2025. The company's Virtual Care Suite is gaining traction, a factor expected to contribute to future revenue growth. These are recent developments, and investors are eagerly awaiting the end-of-year Audacity study results, which could influence the company's future direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.