KALA BIO Receives Nasdaq Notice of Non‑Compliance Over Low Stock Price

What Happened

• KALA BIO, Inc. (KALA) reported that on August 27, 2026 Nasdaq’s Listing Qualifications Staff sent a determination that the company’s closing bid price was below the $1.00 minimum for 30 consecutive business days (July 16, 2026–August 26, 2026), violating Nasdaq Listing Rule 5550(a)(2).
• Because KALA effected a 1‑for‑50 reverse stock split on May 11, 2026, Nasdaq determined the company is not eligible for the usual 180‑calendar‑day compliance period under Rule 5810(c)(3)(A) and cited Rule 5810(c)(3)(A)(iv).
• The company intends to timely request a hearing before the Nasdaq Hearings Panel to appeal the determination; a timely hearing request will stay any suspension or delisting pending the Panel’s decision.

Key Details

• Staff Determination Letter date: August 27, 2026.
• Period of non‑compliant closing bid prices: July 16, 2026 through August 26, 2026 (30 consecutive business days).
• Reverse split: 1‑for‑50 reverse stock split effected on May 11, 2026.
• Nasdaq rules cited: Listing Rule 5550(a)(2) (minimum $1 bid price) and Listing Rule 5810(c)(3)(A)(iv) (ineligibility after a reverse split).

Why It Matters

• If Nasdaq ultimately delists KALA, the company’s shares could be moved to an over‑the‑counter market, reducing liquidity and making trading and institutional ownership more difficult for investors.
• The company’s timely request for a hearing temporarily prevents suspension or delisting, but there is no guarantee the Panel will grant continued listing or that KALA will regain compliance.
• Investors should monitor KALA’s forthcoming SEC filings and Nasdaq notices for updates, as this is a material regulatory risk affecting the stock’s trading status.