KALA BIO, Inc. 8-K

What Happened
KALA BIO, Inc. filed an 8-K on May 7, 2026 announcing that it filed a Certificate of Amendment to effect a 1-for-50 reverse stock split of its common stock, effective May 8, 2026 at 4:05 p.m. (Delaware time). The Board had authority from stockholder approval at the 2025 annual meeting to choose a ratio between 1-for-2 and 1-for-100 and selected 1-for-50. As a result, issued and outstanding shares are expected to be reduced from 929,491,578 to approximately 18,589,832 shares. The company also reported Item 3.03 (material modification to rights of security holders) in connection with the amendment.

Key Details

• Reverse split ratio: 1-for-50; effective date/time: May 8, 2026 at 4:05 p.m. (Del. time).
• Post-split outstanding shares: ~18,589,832 (from 929,491,578 pre-split); authorized shares remain 1,500,000,000.
• No fractional shares will be issued; holders entitled to receive cash in lieu based on Nasdaq closing price on May 7, 2026.
• Equity awards and plan share reserves will be proportionately adjusted; new CUSIP for common stock: 483119301.
• Common stock to begin trading on a split-adjusted basis on the Nasdaq Capital Market on May 11, 2026; ticker remains "KALA." A press release announcing the split was issued May 7, 2026.

Why It Matters
A reverse split reduces the number of outstanding shares and increases the per‑share basis, but does not change the company’s market value by itself. Investors should note the reduced share count, the cash treatment for fractional shares, and proportional adjustments to stock options and plan reserves. The authorized share count remaining unchanged means the company retains the ability to issue additional shares in the future. Trading will reflect the new share count starting May 11, 2026, under the same ticker.