AUSTIN, Texas - Plus Therapeutics, Inc. (NASDAQ:PSTV), a clinical-stage pharmaceutical company with a current market capitalization of $7.31 million, has announced the closure of a private placement financing, securing approximately $3.7 million in upfront proceeds. Additionally, the company has received a $2.0 million advance from the Cancer Prevention and Research Institute of Texas (CPRIT) as part of an existing $17.6 million grant award. According to InvestingPro data, while the company holds more cash than debt on its balance sheet, it has been quickly burning through its cash reserves.
The funds from the private placement and CPRIT advance are earmarked for the clinical development of Rhenium (186Re) Obisbemeda for leptomeningeal metastases (LM), a rare cancer complication, and for advancing the CNSide LM diagnostic test, intended as a pivotal trial endpoint. Despite showing strong revenue growth of 52.63% in the last twelve months, InvestingPro analysis reveals that the company’s short-term obligations currently exceed its liquid assets, with a current ratio of 0.44.
Marc H. Hedrick, M.D., President and CEO of Plus Therapeutics, expressed gratitude for the continued support from investors and key funding agencies such as CPRIT, the National Institutes of Health, and the U.S. Department of Defense. He anticipates that the capital, along with expected grant allocations later in the year, will fully support the completion of two planned LM trials, setting the stage for a pivotal trial in 2026.
The private placement involved the issuance and sale of secured convertible promissory notes and common stock purchase warrants. AIGH Capital Management LLC participated in the financing, along with other existing healthcare-focused institutional investors. The notes, bearing a ten percent annual interest, are convertible into common stock at an exercise price of $1.12 per share and have a one-year maturity date from the closing of the financing.
The Company has stated its intention to use the net proceeds from the private placement for general corporate and working capital purposes. The securities offered have not been registered under the Securities Act or applicable state securities laws and may not be reoffered or resold in the United States absent registration or an exemption.
Following the $2.0 million advance, approximately $5.2 million remains from the original CPRIT grant. On February 13, 2025, Plus Therapeutics also issued secured convertible promissory notes in exchange for existing investors canceling Series A common stock purchase warrants and waiving certain capital-raising restrictions.
This financing activity comes as Plus Therapeutics continues to develop targeted radiotherapeutics for central nervous system cancers, with ongoing clinical trials for Rhenium (186Re) Obisbemeda in recurrent glioblastoma and leptomeningeal metastases. The information provided is based on a press release statement from Plus Therapeutics, Inc. For a comprehensive analysis of Plus Therapeutics’ financial health and future prospects, investors can access detailed Pro Research Reports and additional financial metrics through InvestingPro, which covers over 1,400 US equities with in-depth analysis and actionable insights.
In other recent news, Plus Therapeutics has made significant strides in its clinical trials, particularly the ReSPECT-LM study, which assesses the efficacy of rhenium obisbemeda in treating leptomeningeal metastasis. The study has shown promising survival rates compared to historical averages and continues with patient enrollment in the sixth cohort. Analyst firm H.C. Wainwright has maintained a Buy rating and an $8.00 price target for the company, emphasizing the potential of rhenium obisbemeda as an effective treatment.
On another front, Jones Trading has adjusted its outlook on Plus Therapeutics, reducing the price target on the company’s shares to $10 from the previous $32, while keeping a Buy rating. This adjustment follows the company’s third-quarter earnings announcement, which acknowledged the clinical promise of Plus’ RNL platform but necessitated a modification of financial projections to reflect the company’s current stock price more accurately.
In terms of financials, Plus Therapeutics reported a decrease in cash balance, a total operating loss of $10.8 million, and a net loss of $9.1 million in the third quarter of 2024. However, the company has secured substantial grant revenue and funding avenues, including a private placement financing and grants from the Department of Defense. These are recent developments that investors should be aware of as they reflect the company’s ongoing efforts in advancing its clinical trials and securing necessary funding.
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