Plus Therapeutics (NASDAQ:PSTV) news for Monday includes the company receiving massive payment from the government.
A Plus Therapeutics news release notes that the company was alerted to the payment by the Biomedical Advanced Research and Development Authority (BARDA). This is a part of the U.S. Department of Health and Human Services.
The payment that Plus Therapeutics will be receiving from BARDA totals $4.6 million. This is to reimburse the company for work done through fiscal years 2012 through 2019. This new payment has to do with retrospective changes in indirect cost rates that went into effect Sept. 27, 2012 through contract HHSO100201200008C.
Plus Therapeutics notes that it is expecting to receive this payment from BARDA sometime in October 2019. The news initially sent the company’s stock soaring on Monday, but other news later in the day saw it drop.
The Plus Therapeutics news that sent its stock plummeting later on Monday are plans for a underwritten public offering. This has it offering up 3 million units that include one share of PSTV stock and a single Series U Warrant. These warrants have an exercise price of $5.00 and are immediately exercisable. They also expire in five years.
Plus Therapeutics notes that investors will be paying $5.00 to purchase the units in this public offering. It is expecting to raise $15 million from this offering. PSTV says it will be using these funds for “working capital, payment of interest on its debt and general corporate purposes.”
PSTV stock saw a max increase of 91% early Monday morning, but is now down 49% during the afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.