Plus Therapeutics Stock Soars 75.4% on Corporate Restructuring

Plus Therapeutics' stock surged 75.4% in pre-market trading on June 25, 2025, driven by significant corporate restructuring efforts aimed at reducing share dilution and enhancing shareholder value.

Plus Therapeutics has undertaken a comprehensive restructuring of its $15 million equity financing, initially announced in March 2025. This restructuring is designed to mitigate potential dilution by up to 1.5 billion shares of common stock, which is expected to bolster shareholder value. The restructuring includes the cancellation of warrants linked to the financing, preventing the issuance of up to 1.51 billion shares. Consequently, only around 36 million shares remain exercisable under amended Series B Warrants at a new 1:1 cashless exercise ratio.

Additionally, the restructuring will eliminate roughly 25 million shares, further decreasing dilution for stockholders. Plus Therapeutics plans to allocate 90% of any capital raised post-July 1, 2025, to repay investors holding 22,727,270 shares of common stock. These payments will be made at 115% of the original purchase price from the March 2025 Equity Financing, calculated at an initial rate of $0.66 per share.

Plus Therapeutics has also made significant strides in its clinical and commercial developments. The company received FDA orphan designation for its lead drug, Robic, for use in patients with leptomeningeal metastasis (LM) due to lung cancer, in addition to previous designations for breast cancer. Promising clinical data from phase one trials showed a median overall survival of 9 months for LM patients, compared to the historical 4 months. The company is on track to launch its CNI tumor cell enumeration test commercially in 2025, which could significantly increase the total addressable market for Robic.

Despite these positive developments, Plus Therapeutics faces financial challenges. The company's cash and investments balance decreased from $8.6 million at the end of 2023 to $3.6 million at the end of 2024, indicating a need for careful financial management. The company reported an operating loss of $14.7 million in 2024, up from $13.3 million in 2023, primarily due to increased spending on clinical trials. The net loss for 2024 was $13 million, reflecting significant financial challenges. The company must navigate complex market access activities, including state licensures and payer agreements, to successfully commercialize its CNI test.