KALA BIO Announces $12,500,000 Private Placement

KALA BIO Announces $12,500,000 Private Placement

ARLINGTON, Mass., June 27, 2024 (GLOBE NEWSWIRE) -- KALA BIO, Inc.

(NASDAQ:KALA), a clinical-stage biopharmaceutical company dedicated to the research, development and commercialization of innovative therapies

for rare and severe diseases of the eye, today announced that it has entered into a securities purchase agreement with a select group

of institutional accredited investors for the sale, in a private placement, of shares of its common stock and shares of its Series H

Convertible Non-Redeemable Preferred Stock (the "Series H Preferred Stock"), for aggregate gross proceeds of approximately

$12.5 million, before deducting offering expenses.

The private placement was led by SR One with participation from ADAR1

Capital Management and another life sciences-focused investor.

In the private placement, KALA has agreed to sell 1,197,314 shares

of its common stock at a price of $5.85 per share and 9,393 shares of its Series H Preferred Stock at a price of $585.00 per share.

The private placement is expected to close on or about June 28, 2024, subject to the satisfaction of customary closing conditions.

KALA intends to use the net proceeds from

the private placement to advance the clinical development of KPI-012 for the treatment of persistent corneal epithelial defect, as well

as for general corporate purposes.

The securities to be sold in the private placement

have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities

laws, and may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption

from the registration requirements. KALA has agreed to file a registration statement with the U.S. Securities and Exchange Commission

(the "SEC") registering the resale of the shares of common stock issued in the private placement and the shares of common

stock issuable upon conversion of the Series H Preferred Stock issued in the private placement no later than the 30th day after the

closing of the private placement.

This press release shall not constitute an

offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities of KALA in any state or other jurisdiction

in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any

such state or jurisdiction. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.

About KALA BIO, Inc.

KALA is a clinical-stage biopharmaceutical company dedicated to the

research, development and commercialization of innovative therapies for rare and severe 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 a human MSC-S, which contains numerous human-derived biofactors, such as growth factors, protease inhibitors, matrix

proteins and neurotrophic factors that can potentially correct the impaired corneal healing that is an underlying etiology of multiple

severe ocular diseases. KPI-012 is currently in clinical development for the treatment of persistent corneal epithelial defect (PCED),

a rare disease of impaired corneal healing, for which it has received Orphan Drug and Fast Track designations from the U.S. Food and Drug

Administration. KALA is also targeting the potential development of KPI-012 for the treatment of Limbal Stem Cell Deficiency and other

rare corneal diseases that threaten vision and has initiated preclinical studies to evaluate the potential utility of its MSC-S platform

for retinal degenerative diseases, such as Retinitis Pigmentosa and Stargardt Disease.

Cautionary Note Regarding 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 expectations

with respect to the expected closing of the private placement, the anticipated use of net proceeds from the private placement 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: whether the conditions for the closing of the private placement will be satisfied; market conditions

and other factors 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 SEC. 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.