KALA BIO Inc experienced a significant increase of 29.25% in pre-market trading, attributed to recent financial developments. The company entered a Securities Purchase Agreement to raise up to $6 million, with an initial closing that secured $1.8 million from preferred shares.
Additionally, KALA BIO reached a loan settlement with Oxford Finance LLC, which involved a $2 million cash payment and the issuance of 1.62 million common stock shares. This settlement will effectively reduce the company's loan balance by $7 million, providing a more favorable financial position.
The appointment of David Lazar as the new CEO is also noteworthy, as he brings experience from his previous role at Novabay Pharmaceuticals Inc. These developments have contributed to positive market sentiment around KALA BIO Inc, despite its previous year-to-date decline.
KALA BIO, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the research, development, and commercialization of therapies for rare and severe diseases of the eye. The Company’s biologics-based investigational therapies utilize its proprietary mesenchymal stem cell secretome (MSC-S) platform. The Company’s product candidate, KPI-012, is a human MSC-S, which contains numerous human-derived biocfactors, such as growth factors, protease inhibitors, matrix proteins and neurotrophic factors that can potentially correct the impaired corneal healing, which is an underlying etiology of multiple severe ocular diseases; KPI-014 specific for inherited retinal degenerative diseases. KPI-012 is in clinical development for the treatment of persistent corneal epithelial defect (PCED), a rare disease of impaired corneal healing. The Company is also engaged in the development of KPI-012 for the treatment of Limbal Stem Cell Deficiency and other rare corneal diseases.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
