What Sparked KALA BIO's Nearly 38% Surge Overnight?

KALA BIO Inc. (NASDAQ:KALA) jumped 37.87% to $0.88 in after-hours trading on Tuesday.

Check out the current price of KALA stock here.

According to Benzinga Pro data, the stock closed the regular session at $0.64, up 3.45%.

Securities Purchase Agreement Details

Last week, the Massachusetts-based biopharmaceutical company entered into a Securities Purchase Agreement with investor David Lazar to raise up to $6 million through a private placement, according to a Securities and Exchange Commission (SEC) Form 8-K filing.

The first closing took place Monday, raising $1.8 million from the sale of 900,000 Series AA Preferred Shares at $2 each. A second closing, expected before March 31, 2026, would raise $4.2 million through 2.1 million Series AAA Preferred Shares at $2 each, pending stockholder approval.

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Oxford Finance Loan Settlement

Last week, KALA BIO and Virginia-based finance firm Oxford Finance LLC reached a loan settlement agreement.

The settlement requires a $2 million cash payment and issuance of 1.62 million common stock shares.

Upon completion of an initial $1 million payment by January 15, 2026, or the stockholder meeting date, and stock issuance, the Loan Agreement balance will be reduced by $7 million.

New Chief Executive Officer

Lazar was also named Chief Executive Officer and Principal Executive Officer by the Board, with effect from the first closing.

From August to November, Lazar served as CEO of Novabay Pharmaceuticals Inc. (NASDAQ:NBY), a biopharmaceutical company based in California.

Stock Performance

The clinical-stage company's stock has fallen 91.72% year to date.

KALA has a 52-week range of $0.61 to $20.58 and a market capitalization of $5.21 million.

Benzinga's Edge Stock Rankings indicates KALA stock has a negative price trend across all time frames. Here is how the stock fares on other parameters.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.