Kala Pharmaceuticals Announces Reverse Stock Split
October 20 2022 - 7:30AM
Kala Pharmaceuticals, Inc. (NASDAQ: KALA) (“Kala” or the
“Company”), a clinical-stage biopharmaceutical company dedicated to
the research, development and commercialization of innovative
therapies for rare diseases of the eye, today announced that it
intends to effect a reverse stock split of its common stock at a
ratio of 1 post-split share for every 50 pre-split shares. The
reverse stock split will become effective at 4:05 p.m. on Thursday,
October 20, 2022. Kala’s common stock will continue to be
traded on the Nasdaq Global Select Market under the symbol KALA and
will begin trading on a split-adjusted basis when the market opens
on Friday, October 21, 2022. The new CUSIP number for the
Company’s common stock following the reverse stock split will be
483119202.
At a special meeting of stockholders held on October 19,
2022, Kala’s stockholders granted the Company’s Board of Directors
the discretion to effect a reverse stock split of Kala’s common
stock through an amendment to its Restated Certificate of
Incorporation at a ratio of not less than 1-for-2 and not more than
1-for-75, such ratio to be determined by the Company’s Board of
Directors.
At the effective time of the reverse stock split, every 50
shares of Kala’s issued and outstanding common stock will be
converted automatically into one issued and outstanding share of
common stock without any change in the par value per share.
Stockholders holding shares through a brokerage account will have
their shares automatically adjusted to reflect the 1-for-50 reverse
stock split. It is not necessary for stockholders holding shares of
the Company’s common stock in certificated form to exchange their
existing stock certificates for new stock certificates of the
Company in connection with the reverse stock split, although
stockholders may do so if they wish.
The reverse stock split will affect all stockholders uniformly
and will not alter any stockholder’s percentage interest in the
Company’s equity, except to the extent that the reverse stock split
would result in a stockholder owning a fractional share. Any
fractional share of a stockholder resulting from the reverse stock
split will be rounded up to the nearest whole number of shares. The
reverse stock split will reduce the number of shares of Kala’s
common stock outstanding from 73,208,140 shares to approximately
1,464,163 shares, subject to adjustment for the rounding up of
fractional shares. Proportional adjustments will be made to the
number of shares of Kala’s common stock issuable upon exercise or
conversion of Kala’s equity awards, convertible preferred stock and
warrants, as well as the applicable exercise price. Stockholders
with shares in brokerage accounts should direct any questions
concerning the reverse stock split to their broker; all other
stockholders may direct questions to the Company’s transfer agent,
American Stock Transfer & Trust Company, LLC, toll-free at
(877) 248-6417 or at (718) 921-8317.
About Kala Pharmaceuticals, Inc.
Kala is a clinical-stage biopharmaceutical company dedicated to
the research, development and commercialization of innovative
therapies for rare diseases of the eye. Kala’s biologics-based
investigational therapies utilize Kala’s proprietary Mesenchymal
Stem Cell Secretome (MSC-S) platform. Kala’s lead product
candidate, KPI-012, is in clinical development for the treatment of
persistent corneal epithelial defect (PCED), a rare disease of
impaired corneal healing, which has received orphan drug
designation from the U.S. Food and Drug Administration. Kala is
also targeting the potential development of KPI-012 for the
treatment of Partial Limbal Stem Cell Deficiency and ocular
manifestations of moderate-to-severe Sjögren's and plans to
initiate preclinical studies to evaluate the utility of its MSC-S
platform for retinal degenerative diseases, such as Retinitis
Pigmentosa and Stargardt Disease. For more information on Kala,
please visit www.kalarx.com.
Forward Looking Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve substantial risks and uncertainties. Any statements in
this press release about Kala’s future expectations, plans and
prospects, including but not limited to statements about Kala’s
Mesenchymal Stem Cell Secretome platform, the development of its
lead product candidate, KPI-012, and other statements containing
the words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“may,” “plan,” “predict,” “project,” “target,” “potential,”
“likely,” “will,” “would,” “could,” “should,” “continue,” and
similar expressions constitute forward-looking statements. Actual
results may differ materially from those indicated by such
forward-looking statements as a result of various important
factors, including: the effect that the reverse stock split may
have on the price of Kala’s common stock; Kala’s ability to realize
the anticipated benefits of planned or completed transactions,
including the uncertainty regarding the receipt of any milestone
payments from Alcon Inc.; the impact of extraordinary external
events, such as the current pandemic health event resulting from
the novel coronavirus (COVID-19), and their collateral
consequences; Kala’s ability to maintain its listing on the Nasdaq
Global Select Market; the uncertainties inherent in the initiation
and conduct of preclinical studies and clinical trials;
uncertainties regarding availability and timing of data from
clinical trials; whether results of early clinical trials or trials
in different disease indications will be indicative of the results
of ongoing or future trials; whether results of the Phase 1b
clinical trial of KPI-012 will be indicative of results for any
future clinical trials and studies of KPI-012; uncertainties
associated with regulatory review of clinical trials and
applications for marketing approvals; Kala’s ability to retain and
hire key personnel; the sufficiency of cash resources and need for
additional financing and other important factors, any of which
could cause the Kala’s actual results to differ from those
contained in the forward-looking statements, discussed in the “Risk
Factors” section of Kala’s Annual Report on Form 10-K, most
recently filed Quarterly Report on Form 10-Q and other filings Kala
makes with the Securities and Exchange Commission. These
forward-looking statements represent Kala’s views as of the date of
this press release and should not be relied upon as representing
Kala’s views as of any date subsequent to the date hereof. Kala
does not assume any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Investor Contact:
Hannah Deresiewiczhannah.deresiewicz@sternir.com212-362-1200
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