KALA BIO Inc. (KALA) had quite the Tuesday evening, with shares jumping 37.87% to $0.88 in after-hours trading. The Massachusetts-based biopharmaceutical company closed the regular session at $0.64, up 3.45%, before the real fireworks began.

So what sparked the surge? A combination of fresh capital, debt relief, and new leadership—all announced in rapid succession.

Fresh Capital Through Private Placement

Last week, KALA BIO entered into a Securities Purchase Agreement with investor David Lazar to raise up to $6 million through a private placement, according to a Securities and Exchange Commission Form 8-K filing.

The deal unfolds in two stages. The first closing happened Monday, bringing in $1.8 million from the sale of 900,000 Series AA Preferred Shares at $2 each. The second closing, expected before March 31, 2026, would raise an additional $4.2 million through 2.1 million Series AAA Preferred Shares at the same $2 price point. That second tranche is contingent on stockholder approval, so shareholders will have their say.

Settling Up With Oxford Finance

KALA BIO also reached a loan settlement agreement with Virginia-based Oxford Finance LLC last week. The terms require a $2 million cash payment plus the issuance of 1.62 million common stock shares.

Here's where it gets interesting: once KALA BIO makes an initial $1 million payment by January 15, 2026—or the stockholder meeting date, whichever comes first—and issues the shares, the Loan Agreement balance gets slashed by $7 million. That's a meaningful reduction for a company with a market cap hovering around $5.21 million.

Meet the New CEO

David Lazar isn't just providing the funding. The Board of Directors appointed him as Chief Executive Officer and Principal Executive Officer, effective from the first closing.

Lazar brings recent experience in the biotech space. From August to November, he served as CEO of Novabay Pharmaceuticals Inc. (NBY), a California-based biopharmaceutical company. Now he's taking the reins at KALA BIO during what appears to be a pivotal restructuring phase.

The Bigger Picture

The clinical-stage company's stock has been hammered this year, falling 91.72% year to date. KALA BIO has a 52-week range of $0.61 to $20.58, meaning shares are trading near their annual lows even after Tuesday's after-hours pop.

Market data indicates KALA stock has a negative price trend across all time frames, reflecting the challenging road the company has traveled. With a market capitalization of just $5.21 million, this is a micro-cap stock navigating choppy waters while attempting a financial and operational turnaround.