Delaware Court Ruling Paves Way for Aurion Biotech IPO, Alcon to Appeal Decision

A Delaware judge issued a ruling that allows Aurion Biotech to proceed with its planned initial public offering (IPO)2.

The court resolved three main issues in the dispute between Aurion Biotech and its investor Alcon Research1 3:

Alcon's claims were not barred by laches
Aurion did not require Alcon's consent for the reverse stock split
Alcon successfully revoked its voting proxy

Aurion Biotech aims to launch its IPO by mid-February 20251 3.

The reverse stock split approved by Aurion's board in December 2024 sets the stage for the IPO by freeing up authorized shares4.

Alcon Research, which owns approximately 40% of Aurion's shares, had sought to block the IPO1 3.

The court ruled that Aurion does not need Series C consent (from Alcon) to close a Qualified IPO3.

Alcon plans to appeal the judge's decision2 7.

The IPO process is already well underway, with Aurion having submitted a Registration Statement to the SEC in October 20243.

If Aurion doesn't complete the IPO by mid-February, it will need to prepare 2024 audited financial statements, potentially delaying the IPO beyond when the company is projected to run out of cash3.

The case highlights the complexities and potential conflicts that can arise between biotech companies and their investors during the IPO process8 9.