Information
ARLINGTON, Mass., Jan. 05, 2026 (GLOBE NEWSWIRE) -- KALA BIO, Inc. (NASDAQ:KALA), ("KALA" or the "Company") today announced the successful completion of its loan settlement with Oxford Finance, LLC ("Oxford"), marking
Original sourceAI Summary
KALA BIO has successfully settled a $10.6 million debt with Oxford Finance by paying $2 million. This resolution enhances the company's strategic flexibility and marks a significant step forward, as stated by the CEO. Additionally, KALA has incentivized new employees with stock awards.
Trading Thesis
KALA's debt settlement improves financial health and investor sentiment, suggesting possible upside.
Market-Moving
- The debt resolution could enhance KALA's stock value and market perception.
- Strategic flexibility may attract new investments and partnerships.
- Stock awards might improve talent acquisition and retention at KALA.
- This settlement reduces financial risk, creating a more favorable investment climate.
- Positive CEO commentary may boost investor confidence in KALA.
Key Facts
- KALA settled a debt of $10.6 million owed to Oxford Finance.
- The settlement was finalized with a $2 million payment.
- KALA's CEO highlighted the settlement as a transformational milestone.
- The company has granted 400,000 shares as stock awards.
- The underlying loan agreement dated back to May 4, 2021.
Companies Mentioned
- Oxford Finance LLC (N/A): KALA settled their debt, relieving financial stresses.
Corporate Developments
This development showcases KALA's improved financial position and strategic outlook. The successful debt settlement indicates a shift towards stability and growth potential, which is crucial for stakeholders considering future investments.
FAQ
Why Bullish?
Settling debt enhances KALA's financial standing, similar to cases where companies gain market confidence post-debt relief, such as Tesla's turnaround after its debt restructuring.
How important is it?
The resolution of a significant debt obligation directly improves KALA's operational capabilities and investor sentiment, impacting the stock's attractiveness.
Why Short Term?
The immediate financial relief and improved investor sentiment are likely to influence KALA's stock in the coming quarters, as seen in other companies that gained traction following similar settlements.
ARLINGTON, Mass., Jan. 05, 2026 (GLOBE NEWSWIRE) -- KALA BIO, Inc. (NASDAQ:KALA), ("KALA" or the "Company") today announced the successful completion of its loan settlement with Oxford Finance, LLC ("Oxford"), marking a transformational milestone for the Company. The completion of the settlement resolves critical debt obligations.
As previously disclosed in the Company's Current Report on Form 8-K filed on November 25, 2025, KALA and its subsidiary Combangio, Inc., entered into a Loan Settlement Agreement with Oxford pursuant to which the Company owed Oxford $2 million to be paid pursuant to the terms of the Settlement Agreement. The Settlement Agreement was negotiated in connection with events of default under the Loan and Security Agreement dated May 4, 2021 (the "Loan Agreement").
Recently, KALA completed its $2 million payment obligation to Oxford. Effective immediately upon this payment, the Company is pleased to announce that it has settled the Oxford debt obligations of approximately $10.6 million as of December 26, 2025. As a direct result of this $2 million payment, all of the Company's obligations under both the Settlement Agreement and the underlying Loan Agreement have been fully satisfied and discharged.
"The successful completion of the Oxford settlement represents a watershed moment for KALA BIO," said David E. Lazar, Chief Executive Officer and Chairman of the Board. "By settling the Company's debt obligations and increasing stockholders' equity, we have removed a substantial overhang that was constraining the Company's strategic flexibility. We are confident in our path forward."
Also, as of December 30, 2025, the Company, with the Compensation Committee of KALA's Board of Directors' approval, granted common stock awards as a material inducement to employment to four individuals hired by KALA, which common stock awards relate to, in the aggregate, 400,000 shares of common stock.
KALA Contact
David Lazar
Chief Executive Officer and Chairman of the Board
david@activistinvestingllc.com
