Plus Therapeutics restructures $15 million financing to reduce dilution

HOUSTON - Plus Therapeutics, Inc. (NASDAQ:PSTV), a clinical-stage pharmaceutical company with a market capitalization of $3.13 million, announced Tuesday a comprehensive restructuring of its $15 million equity financing originally disclosed on March 4, 2025, eliminating potential dilution of up to 1.5 billion shares of common stock. According to InvestingPro data, the company has been quickly burning through cash, making this financing restructuring particularly significant for its future operations.

The clinical-stage pharmaceutical company, which develops targeted radiotherapeutics for central nervous system cancers, has canceled warrants that could have resulted in the issuance of approximately 1.51 billion shares. Following the restructuring, only about 36 million shares remain issuable upon exercise of amended Series B Warrants at a 1:1 cashless exercise ratio. The company’s stock has experienced significant volatility, with a 88% decline over the past year, though it maintains a positive aspect of holding more cash than debt on its balance sheet.

The restructuring also includes cancellation of approximately 25 million shares of common stock or pre-funded warrants, further reducing stockholder dilution.

Under the new terms, Plus Therapeutics will use 90% of proceeds from any capital raised after July 1, 2025, to repay holders of 22,727,270 shares at 115% of the original price paid in the March financing, based on an initial price of $0.66 per share.

The company has filed a request with the Securities and Exchange Commission to withdraw the resale registration statement related to the March 2025 equity financing.

Additional details of the restructuring are available in the company’s Current Report on Form 8-K filed with the SEC on June 17, 2025.

Plus Therapeutics is headquartered in Houston and focuses on developing radiotherapeutics for difficult-to-treat cancers of the central nervous system, with lead programs in leptomeningeal metastases and recurrent glioblastoma. With revenue of $5.21 million in the last twelve months, the company faces significant challenges ahead. Discover more detailed analysis and 14 additional key insights about PSTV through a comprehensive Pro Research Report, available exclusively on InvestingPro.

This article is based on a press release statement from Plus Therapeutics.

In other recent news, Plus Therapeutics announced its financial results for 2024, reporting grant revenues of $5.8 million, slightly below the consensus estimate of $6.4 million. The company also reported a net loss of $1.95 per share, which closely matched the expected loss of $1.94 per share. Following these announcements, H.C. Wainwright adjusted its price target for Plus Therapeutics to $5.50, down from $8.00, while maintaining a Buy rating. In contrast, Ascendiant Capital raised its price target for the company to $20.50 from $20.00, citing confidence in the company’s drug development progress.

Plus Therapeutics has also made significant strides in its clinical trials, particularly with its lead drug REYOBIQ™ for CNS cancers. Recent data from the Phase 1 ReSPECT-LM trial showed promising safety and clinical benefits, with a Clinical Benefit Rate of 76%. Furthermore, the company announced the appointment of Kyle Guse to its Board of Directors, bringing over 30 years of experience in financial and legal sectors. This strategic addition is expected to enhance the board’s effectiveness as the company advances its radiotherapeutics pipeline.

Additionally, Plus Therapeutics recently completed a $15 million private placement, increasing its cash position to $18.6 million. Analysts from H.C. Wainwright believe this funding will support operations through early 2026. These developments underscore Plus Therapeutics’ ongoing efforts in drug development and corporate strategy.

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