KALA BIO Reveals $12.5M Private Placement

ARLINGTON, Mass., June 27, 2024 – KALA BIO, Inc. (NASDAQ:KALA), a biopharmaceutical company focused on developing treatments for rare and severe eye diseases, announced it has entered into a securities purchase agreement with select institutional accredited investors. This agreement involves the sale of its common stock and Series H Convertible Non-Redeemable Preferred Stock, aiming to raise approximately $12.5 million before expenses.

The private placement is spearheaded by SR One with contributions from ADAR1 Capital Management and another investor in the life sciences sector. Within this arrangement, KALA will sell 1,197,314 shares of common stock at $5.85 each and 9,393 shares of Series H Preferred Stock at $585.00 each. The closing of the private placement is anticipated around June 28, 2024, pending standard closing conditions.

KALA plans to utilize the net proceeds from this private placement primarily to progress the clinical development of KPI-012, a treatment for persistent corneal epithelial defect (PCED). Additionally, funds will support general corporate needs.

The securities being sold in this private placement have not been registered under the Securities Act of 1933 or relevant state laws. Therefore, they cannot be offered or sold in the United States without an effective registration statement or an applicable exemption. KALA has committed to filing a registration statement with the U.S. Securities and Exchange Commission (SEC) to register the resale of the common stock and the common stock issuable upon conversion of the Series H Preferred Stock within 30 days post-closing.

This announcement does not constitute an offer to sell or solicitation to buy securities of KALA in any jurisdiction where such actions would be unlawful without proper registration or qualification. Any offering of securities under the resale registration statement will be made solely through a prospectus.

About KALA BIO, Inc.

KALA BIO, Inc. is a clinical-stage biopharmaceutical company specializing in the development of innovative therapies for rare and severe ocular diseases. The company leverages its proprietary mesenchymal stem cell secretome (MSC-S) platform to create biologics-based treatments. KPI-012, their leading product candidate, is derived from human MSC-S and includes various human-derived biofactors like growth factors and neurotrophic factors, which may address impaired corneal healing, a root cause of several severe eye conditions.

Currently, KPI-012 is in clinical development for treating persistent corneal epithelial defect (PCED), a rare condition characterized by impaired corneal healing. KPI-012 has received Orphan Drug and Fast Track designations from the U.S. Food and Drug Administration. Beyond PCED, KALA is investigating KPI-012 for potential use in treating Limbal Stem Cell Deficiency and other rare corneal diseases that pose a threat to vision. Moreover, the company has initiated preclinical studies to examine the applicability of its MSC-S platform for managing retinal degenerative diseases, including Retinitis Pigmentosa and Stargardt Disease.

KALA’s commitment to advancing eye care through innovative therapies underscores its dedication to addressing unmet medical needs in ophthalmology.