When a penny stock announces it's raising money at a discount to the current price, the market tends to have feelings about that. Plus Therapeutics Inc. (PSTV) found that out Wednesday morning when shares plunged nearly 38% in premarket trading after the company disclosed terms of a $15 million public offering.
The clinical-stage pharmaceutical company priced its underwritten offering at $0.38 per unit, with each unit consisting of one share of common stock and one warrant. That's a meaningful discount considering the stock closed at $0.47 on Tuesday, and investors responded accordingly.
The offering is expected to close on January 15, 2026, with proceeds earmarked for working capital and general corporate purposes. Translation: keeping the lights on while the company advances its pipeline of cancer treatments.
What Plus Therapeutics Actually Does
Plus Therapeutics is focused on developing targeted radiotherapeutics for difficult-to-treat cancers of the central nervous system. This is genuinely challenging science, addressing cancers in areas where traditional treatments often struggle to reach or prove effective.
The company's pipeline includes lead programs targeting leptomeningeal metastases and recurrent glioblastoma, both devastating diagnoses with limited treatment options. In January, Plus Therapeutics wrapped up a Type B meeting with the FDA regarding next steps for its Reyobiq pivotal trial strategy for leptomeningeal metastases. The company plans to incorporate the FDA's feedback into its current dose optimization trial and seek alignment on a revised protocol, likely later in 2026.
On the commercial front, there's been some positive movement. In September 2025, CNSide Diagnostics, a wholly-owned subsidiary of Plus Therapeutics, signed a national agreement with UnitedHealthcare insurance company, a unit of UnitedHealth Group Inc. (UNH). The agreement provides coverage for the CNSide Cerebrospinal Fluid Tumor Cell Enumeration laboratory-developed test to over 51 million people throughout the United States. That's the kind of insurance coverage that can actually move the needle for diagnostic products.