aibioKALA BIO agrees to $10,750,000 private placement of common and preferred stock
Tickers KALA
The company is selling 1,340,603 shares at $6.44 and 3,286 Series I preferred shares at $644.00. It expects the money to fund operations into the first quarter of 2026.
Key facts
- Company
- KALA BIO, Inc. (NASDAQ: KALA)
- News type
- Financings
- Primary source
- KALA BIO, Inc. 8-K (2024-12-30)
KALA BIO, Inc. entered into a securities purchase agreement with a group of institutional accredited investors for a private placement with aggregate gross proceeds of approximately $10.75 million, before offering expenses.
KALA agreed to sell 1,340,603 shares of common stock at $6.44 per share and 3,286 shares of its Series I Convertible Non-Redeemable Preferred Stock at $644.00 per share, according to a press release dated December 30, 2024. The deal was expected to close on or about December 31, 2024, subject to customary closing conditions.
New and existing investors took part, including SR One, Cormorant Asset Management, Woodline Partners and another life sciences-focused investor.
KALA said it expects its existing cash, together with the net proceeds, to fund operations into the first quarter of 2026. It plans to use the money to advance clinical development of KPI-012 for persistent corneal epithelial defect, a rare disease of impaired corneal healing, and for general corporate purposes.
"With over 80% of enrollment now complete in the CHASE trial, we remain on track to report topline data in the second quarter of 2025," said Mark Iwicki, chair and chief executive officer.
The securities have not been registered. KALA agreed to file a resale registration statement covering the common shares and the shares issuable on conversion of the preferred stock no later than the 30th day after closing. A resale registration lets the buyers sell their shares in the public market later.