KALA BIO (NASDAQ:KALA) closed a registered direct offering on December 5, 2025, selling 10 million shares (or pre‑funded warrants) at $1.00 per share and generating roughly $10 million in gross proceeds before fees.
The transaction was priced at‑the‑market under Nasdaq rules, filed under a shelf registration (File No. 333‑270263, effective May 11, 2023), and H.C. Wainwright & Co. acted as exclusive placement agent. Net proceeds are earmarked for repayment of certain indebtedness and for general corporate purposes. Prospectus materials are available on the SEC website.
Positive
- Gross proceeds of roughly $10 million
- Capital directed toward debt reduction
- Offering executed under an existing shelf registration (File No. 333‑270263)
Negative
- Issuance of 10 million shares creates dilution risk
- Pricing at $1.00 per share may signal pressure on the stock price
- Net proceeds will be offset by placement‑agent fees and other expenses
Key Figures
Gross proceeds
$10 million
Aggregate gross proceeds before fees
Shares issued
10,000,000 shares
Common stock (or pre‑funded warrants) sold
Purchase price
$1.00 per share
Offering price per share or warrant
Filing date
March 3, 2023
Date registration statement filed with the SEC
Effectiveness date
May 11, 2023
Date SEC declared registration statement effective
Market Reality Check
$1.05
Last Close
Volume
Volume 176,279,498 is 8.77× the 20‑day average of 20,093,046, indicating unusually high trading activity ahead of the announcement.
high
Technical
Shares trade below the 200‑day moving average of 5.56, suggesting a depressed long‑term trend despite recent short‑term strength.
Peers on Argus
1 Down
Peer performance is mixed: BMEA up 12.91%, IKT up 4.48%, TARA up 2.39% in sector context, while a momentum scanner flags TARA down 18.85%. With only one peer showing momentum and no clear sector‑wide direction, KALA’s move appears largely stock‑specific.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 04 | Equity offering | Neutral | +13.5% | Announced $10 M registered direct equity financing at $1.00 per share. |
| Dec 01 | Financing & CEO change | Positive | +37.7% | $6 M preferred equity deal and appointment of David Lazar as CEO and Chairman. |
| Sep 29 | Trial failure | Negative | -89.3% | Phase 2b KPI‑012 trial failed endpoints, prompting program cessation and cost cuts. |
| Sep 03 | Conference participation | Positive | +23.1% | Planned presentation at H.C. Wainwright global investment conference. |
| Sep 02 | Executive appointment | Positive | +8.7% | Todd Bazemore appointed permanent CEO ahead of key trial readout. |
News events have repeatedly aligned with price moves; prior financing announcements triggered strong upside despite dilution concerns.
In recent months, KALA BIO has navigated clinical setbacks, a sharp stock downturn, and multiple financing steps. The September 29, 2025 Phase 2b trial failure drove an 89.27% price drop. A $6 M preferred equity infusion on December 1, 2025 lifted the stock 37.67%, and the $10 M direct offering announced on December 4, 2025 added a 13.51% gain, positioning the closing as a follow‑through to recapitalize the business.
Market Pulse Summary
The announcement confirms the closing of KALA BIO’s registered direct financing, raising $10 million through 10 million shares or pre‑funded warrants at $1.00 each. Net proceeds will be applied to debt repayment and general corporate purposes. In the wake of a recent trial failure, loan defaults, and leadership changes, investors will be watching how the new capital improves liquidity, influences debt negotiations, and supports any upcoming strategic initiatives.
Key Terms
registered direct offering
financial
A registered direct offering allows a company to sell new shares directly to selected investors with SEC registration, enabling rapid capital infusion without a public auction.
pre‑funded warrants
financial
Pre‑funded warrants give investors the right to acquire stock at a fixed price after paying most or all of the purchase price upfront, offering flexibility while locking in a future equity position.
prospectus supplement
regulatory
A prospectus supplement provides updated or additional information to the base prospectus, ensuring investors receive the latest terms, risks, and details of the securities offered.
placement agent
financial
A placement agent assists issuers in raising capital by connecting them with institutional investors and managing the offering process.
AI-generated analysis. Not financial advice.
Arlington, Mass., Dec. 5, 2025 (GLOBE NEWSWIRE) — KALA BIO, Inc. (NASDAQ:KALA) announced the closing of its previously disclosed registered direct offering, priced at‑the‑market under Nasdaq rules. The company sold an aggregate of 10 million shares of common stock (or pre‑funded warrants in lieu thereof) at $1.00 per share.
H.C. Wainwright & Co. served as the exclusive placement agent for the transaction.
The gross proceeds from the offering were approximately $10 million before deduction of placement‑agent fees and other offering expenses. KALA intends to apply the net proceeds to repay certain indebtedness and for general corporate purposes.
The securities were offered pursuant to a “shelf” registration statement (File No. 333‑270263) filed with the SEC on March 3, 2023 and declared effective on May 11, 2023. The offering was made solely by means of a prospectus, including a prospectus supplement, which forms part of the effective registration statement. The prospectus supplement and accompanying prospectus are available on the SEC website (www.sec.gov).
KALA BIO is a clinical‑stage biopharmaceutical company focused on developing therapies for rare and severe eye diseases. Its lead candidate, KPI‑012, is a human mesenchymal stem‑cell secretome (MSC‑S) product that has received Orphan Drug and Fast Track designations from the U.S. Food and Drug Administration for the treatment of persistent corneal epithelial defect (PCED).
Forward‑looking statements in this release are subject to the risk factors detailed in KALA’s Form 10‑K, Form 10‑Q, and other SEC filings. The company does not assume any obligation to update these statements, except as required by law.
FAQ
What did KALA (NASDAQ:KALA) announce on December 5, 2025?
KALA announced the closing of a registered direct offering of 10 million shares (or pre‑funded warrants) at $1.00 per share, raising about $10 million gross.
How will the net proceeds from the offering be used?
The company plans to use net proceeds to repay certain indebtedness and for general corporate purposes.
Who acted as placement agent for the offering?
H.C. Wainwright & Co. served as the exclusive placement agent.
Where can investors find the prospectus supplement?
The prospectus supplement is available on the SEC website (www.sec.gov).
How many shares were sold and at what price?
KALA sold 10 million shares (or pre‑funded warrants) at a purchase price of $1.00 per share.
Will the offering dilute existing shareholders?
Yes. Issuing 10 million new shares will dilute existing shareholders’ ownership.
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