KALA BIO Implements 1-for-50 Reverse Stock Split to Regain Nasdaq Compliance

KALA BIO, Inc. (NASDAQ: KALA) announced the implementation of a 1-for-50 reverse stock split of its common stock, effective at 4:05 p.m. on May 8, 2026. Split-adjusted trading is set to begin on the Nasdaq Capital Market at the open on May 11, 2026. The reverse split reduces the company's outstanding common shares from approximately 929.5 million to 18.6 million, with cash payments issued in lieu of fractional shares and proportional adjustments made to outstanding equity awards, warrants, and other convertible securities.

This corporate action is significant for KALA BIO as it aims to regain compliance with Nasdaq's minimum bid price requirement. Companies listed on the Nasdaq must maintain a minimum bid price of $1.00 per share; failure to do so can lead to delisting. By reducing the number of shares outstanding, the reverse stock split is expected to increase the per-share trading price, potentially attracting institutional investors and improving the company's market perception.

KALA BIO is a clinical-stage biopharmaceutical company building a dedicated, on-premises AI infrastructure platform for the biotechnology industry. The company's dual strategy combines a proprietary biologics pipeline—including its mesenchymal stem cell secretome (MSC-S) platform and FDA Orphan Drug- and Fast Track-designated product candidates—with a scalable AI platform-as-a-service business designed to deploy secure, purpose-built AI solutions directly within biotech and pharmaceutical client environments. Through its exclusive worldwide license for the Researgency AI research platform from Younet, Kala intends to serve as the dedicated AI infrastructure partner for the biotechnology industry, enabling organizations of all sizes to unlock the value of their proprietary biological data without surrendering control.

The reverse stock split is a critical step for KALA BIO as it continues to advance its AI-driven strategy. The company is focusing on an agentic transformation for biomedical organizations through Researgency.ai, a platform designed to enable scalable, governed deployment of AI agents across research, documentation, and operational workflows. The company's emphasis on enterprise security, real-time performance, and seamless integration positions it at the forefront of innovation in the life sciences AI sector.

For further details on the reverse stock split, the full press release is available at https://ibn.fm/yUznR.