The stock price of KALA BIO, Inc. (NASDAQ: KALA) has significantly increased since the announcement of an equity transaction. KALA shares are now trading at $6.69, up 48.02% from the previous trading session.
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The Private Placement
KALA BIO revealed that a limited number of institutionally accredited investors had signed a securities purchase agreement with the company. Under this arrangement, shares of the company’s common stock and Series H Convertible Non-Redeemable Preferred Stock will be sold with the goal of raising around $12.5 million in gross proceeds, before offering costs are deducted.
The private placement is spearheaded by SR One, with additional participation from ADAR1 Capital Management and another investor focused on life sciences. KALA BIO will sell 9,393 shares of Series H Preferred Stock at $585.00 per share and 1,197,314 shares of Common Stock at $5.85 per share under the terms of this agreement. With the satisfaction of normal closing conditions, the deal is expected to conclude on or around June 28, 2024.
Strategic Use of Proceeds
KALA BIO plans to utilize the net proceeds from this private placement to further the clinical development of KPI-012, a treatment for persistent corneal epithelial defect (PCED). The funds will also support general corporate purposes.
KALA BIO is intensively focused on advancing its clinical program for KPI-012 to treat PCED, a rare and severe disease with multiple underlying causes that are often unresponsive to current therapies.
KPI-012, with its multifactorial mechanism of action, has shown potential in clinical trials to address the various impaired corneal healing processes associated with PCED, offering patients a well-tolerated, easily administered, and effective treatment option.
KALA BIO aims to achieve topline data from its ongoing Phase 2b CHASE trial by the end of the year, which, if positive, could serve as the first of two pivotal trials needed to support a Biologics License Application (BLA) submission.
Broader Exploration of Platform Technology
Simultaneously, KALA BIO remains dedicated to exploring the broader potential of its platform technology, striving to establish itself as a leader in the emerging field of mesenchymal stem cell secretome therapy.
