Allurion Technologies, Inc. (NYSE: ALUR) raised $3.0 million in gross proceeds by exercising warrants issued on January 27, 2025; February 20, 2025; and November 12, 2025. The warrants were exercised at a reduced price of $1.15 per share, resulting in the issuance of 2,659,565 shares of common stock. In consideration for the immediate exercise, the holders also received new warrants to purchase additional shares, adding potential dilution to the equity base.
The financing comes at a time when Allurion’s cash balance has fallen sharply—from $15.4 million at the end of 2024 to $6.1 million by September 30, 2025—while operating expenses remain high. The $3 million infusion is therefore critical to sustaining day‑to‑day operations and supporting the company’s regulatory and commercial initiatives, including the pursuit of FDA approval for its Smart Capsule.
The exercise price of $1.15 per share is well below the market price at the time of the transaction, indicating a favorable term for warrant holders but also reflecting the company’s limited ability to raise capital at market rates. The simultaneous issuance of new warrants further increases the potential for future dilution, a factor that investors closely monitor when assessing the company’s capital structure.
Management emphasized that the capital raise supports a strategic pivot toward combining its weight‑loss program with GLP‑1 medications and the ongoing development of its Smart Capsule. Despite the infusion, the company continues to face declining revenues—down 50% year‑over‑year in Q3 2025—and operating losses, underscoring the need for additional financing to maintain its growth trajectory.
Investors reacted negatively to the announcement, citing concerns about dilution, the reduced exercise price, and the company’s persistent financial distress. The market’s response highlights the challenges Allurion faces in securing capital on favorable terms while pursuing its strategic objectives.
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