Allurion Technologies and Compute Health Acquisition today announced a definitive business combination agreement at an implied $500 million valuation.
If approved, upon closing Allurion is expected to trade on the NYSE under the symbol ALUR.
Allurion offers a weight-loss platform to help individuals overcome obesity.
The proposed transaction includes a fully committed pipe led by RTW Investments and a non-dilutive, synthetic royalty financing from RTW Investments that will close concurrently with the business combination.
The deal also includes a senior secured term loan from an affiliate of fortress investment group to refinance existing Allurion debt and further extend runway, and is further supported by a $100 million Chardan Equity Facility (the “ChEF”). Under the terms of the ChEF, after the proposed business combination has closed, Chardan Capital Markets LLC (“Chardan”) has committed to purchase up to an aggregate of $100 million of Allurion common stock from time to time at the request of Allurion. This facility will provide Allurion with the ability to raise additional capital opportunistically in the future.
Terms include a minimum cash condition of $70 million (net of expenses) and the deal is expected to provide a minimum of $87 million of gross cash proceeds.
Source: Weight-Loss Tech Co. Allurion Merging with Compute Health Acquisition in 0M Deal