PSTV - Plus Updates Financial and Cash Guidance for 2024 | Benzinga
Plus Receives $3.3M in grant revenue in Q4 2023
Forecasts additional $6.9M of grant revenue for 2024
Enters into debt restructuring deal with Pershing Capital to reduce 2024 cash burn by $3.7M
AUSTIN, Texas, Dec. 18, 2023 (GLOBE NEWSWIRE) -- Plus Therapeutics, Inc. (Nasdaq: PSTV) (the "Company"), a clinical-stage pharmaceutical company developing targeted radiotherapeutics with advanced platform technologies for central nervous system (CNS) cancers, today announced financial updates and guidance for 2024.
Plus is currently in the second year of a Cancer Prevention and Research Institute of Texas (CPRIT) award totaling $17.8 million. The grant funds are advances on future spend and received based on hitting certain milestones. The $3.3 million payment is the first advance for the second year of the award. The Company forecasts an additional $6.9 million in grant revenue during the 2024 calendar year.
Furthermore, the Company currently has a debt facility with Oxford Finance LLC. The remaining balance of the facility is $0.7 million as of YE 2023 with a $3.3 million deferred interest payment due in June 2024. The new facility carries a lower interest rate and principal payment flexibility allowing for principal payments to be deferred into 2025 and beyond and is expected to close in January 2024.
"This combination of forecasted non-dilutive grant revenue and debt restructuring significantly strengthens our balance sheet and reduces our burn," said Andrew Sims, Chief Financial Officer of Plus Therapeutics. "Following closure of the debt restructure, the Company should have capital sufficient to extend the runway to the second half of 2025."
To date, the Company has received $7 million from CPRIT and, in 2024, anticipates receiving an additional $6.9 million, $3.3 million in Q2 and $3.6 million in Q4, as part of the planned cadence of award payments. The Company reported $11.0 million in cash as of September 30, 2023. The Company believes that the award payment together with its cash on hand provide sufficient runway to fund operations to the second half of 2025.
Plus' grant from CPRIT ...