KALA BIO, Inc. (KALA) has eliminated a major financial overhang by completing a loan settlement with Oxford Finance, resolving approximately $10.6 million in debt obligations and strengthening the company's balance sheet.
The company finalized a previously negotiated $2 million payment to Oxford, fulfilling its obligations under a Loan Settlement Agreement tied to earlier events of default under a 2021 Loan and Security Agreement. With this payment completed, all outstanding liabilities under both the settlement and the original loan agreement have now been fully discharged.
KALA described the settlement as a "watershed moment," noting that the removal of this debt burden significantly improves strategic flexibility and increases stockholders' equity.
CEO David E. Lazar emphasized that resolving the Oxford obligations clears a substantial constraint that had been limiting the company's ability to advance its plans.
In addition to the debt resolution, KALA disclosed that, as of December 30, 2025, it granted 400,000 shares of common stock as inducement awards to four newly hired employees, following approval by the Compensation Committee of the Board of Directors. These awards were issued outside the company's stockholder-approved equity plan.
The settlement marks a notable financial milestone for KALA BIO as it continues to reposition itself operationally and strategically. With the Oxford debt now fully settled, the company enters 2026 with a cleaner balance sheet and greater room to execute on its corporate objectives.
KALA has traded between $0.51 and $20.60 over the past year. The stock is currently trading in the pre-market at $0.67, up 10.34%.
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