Plus Therapeutics Inc. (NASDAQ: PSTV) completed a public offering of 39,473,684 units, each comprising one common share and one warrant, priced at $0.38 per unit. The transaction is expected to raise approximately $15 million before underwriting discounts and commissions, with the offering scheduled to close on January 15 2026. Lake Street Capital Markets, LLC served as the sole underwriter and holds a 30‑day option to purchase up to an additional 5,921,052 shares and/or warrants. The warrants are immediately exercisable at the offering price and will expire five years from issuance.
The company’s financial profile underscores the urgency of the capital raise. Plus Therapeutics has no revenue and has reported increasing losses over the past five years, with a 2024 loss of $12.98 million on $5.82 million in revenue. Cash burn has been steady, and the company’s current and cash ratios—1.29 and 1.22, respectively—indicate moderate liquidity but a reliance on external financing to sustain operations. The new equity will dilute existing shareholders, a concern amplified by the company’s recent Nasdaq minimum bid‑price compliance extension, which grants a 180‑day window to regain compliance. The low unit price and potential for additional shares under the underwriter’s option heighten the risk that the stock could fall below the required bid price if the market does not absorb the new supply.
Strategically, the proceeds will support the development and commercialization of the company’s radiotherapeutic pipeline for central nervous system cancers. The firm’s lead program, REYOBIQ™ for leptomeningeal metastases, recently completed a Type B meeting with the FDA, which emphasized overall survival as a key endpoint for accelerated approval. The company also operates CNSide Diagnostics, LLC, a laboratory‑developed test platform that identifies tumor cells in the CNS, providing a complementary diagnostic arm to its therapeutic portfolio. The infusion of capital is intended to fund ongoing clinical trials, regulatory submissions, and potential expansion of manufacturing capabilities.
Market reaction to the announcement was sharply negative, driven primarily by the dilution impact of the offering. Investors expressed concern that the issuance of nearly 40 million new units, coupled with the underwriter’s option for additional shares, would significantly increase the share count and potentially push the stock below Nasdaq’s minimum bid‑price threshold. The market’s focus on dilution and compliance risk reflects the company’s history of frequent financing rounds and its current lack of revenue, which together create a perception of heightened financial risk.
The offering extends Plus Therapeutics’ cash runway, providing the company with the resources to advance its clinical programs and navigate regulatory milestones. However, the dilution effect and Nasdaq compliance considerations introduce short‑term shareholder dilution and potential listing risk. The company will need to balance the immediate capital infusion against the long‑term impact on shareholder value and market perception as it continues to pursue its CNS radiotherapeutic pipeline.
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