KALA BIO eliminates debt overhang through equity settlements

Claim 70% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potentialKALA BIO ( (KALA) ) just unveiled an announcement. On December 30, 2025, KALA BIO entered into a series of equity-based settlements, agreeing to issue 900,000 common shares to Baker Bros. Advisors to resolve claims over participation rights and securing a six‑month voting proxy over those and certain other Baker Bros. shares, 2,200,000 shares to LifeSci Capital to settle financial advisory fee obligations, and 1,100,000 shares to Delaware IR to satisfy a $600,000 marketing and advertising consulting liability via stock with a make‑whole feature tied to sale proceeds. That same day, the company issued a total of 4,600,000 unregistered common shares in private transactions—4.2 million under these settlements and 400,000 to employees—and later disclosed that, following a $2 million payment completed by December 26, 2025, it had fully extinguished approximately $10.6 million of debt owed to Oxford Finance, a move management described on January 5, 2026 as a transformational step that removes a significant debt overhang, increases stockholders’ equity and improves KALA BIO’s financial flexibility, while also using equity awards as inducements to hire four new employees. The most recent analyst rating on (KALA) stock is a Hold with a $0.59 price target. To see the full list of analyst forecasts on KALA BIO stock, see the KALA Stock Forecast page. Spark’s Take on KALA Stock According to Spark, TipRanks’ AI Analyst, KALA is a Neutral. The score is held down primarily by severely weak financial performance (minimal revenue, large losses, heavy cash burn, and negative equity). Technicals also remain bearish (below major moving averages with negative MACD). Corporate events provide limited offset—debt settlement and financing help—but ongoing listing/compliance and distress-related risks remain substantial. To see Spark’s full report on KALA stock, click here. More about KALA BIO KALA BIO, Inc., based in Arlington, Mass., is a Nasdaq-listed biotechnology company focused on ophthalmology, developing and commercializing therapies for eye diseases. The company operates in the biopharmaceutical sector, where balance-sheet strength and access to capital are critical for funding R&D and advancing its clinical and commercial pipeline. Average Trading Volume: 7,722,062 Technical Sentiment Signal: Sell Current Market Cap: $13.51M For a thorough assessment of KALA stock, go to TipRanks’ Stock Analysis page.