KALA BIO Settles Approximately $10.6 million of Debt

Core Viewpoint - KALA BIO, Inc. has successfully completed a loan settlement with Oxford Finance, resolving critical debt obligations and marking a significant milestone for the company [1][3]. Debt Settlement - KALA and its subsidiary Combangio, Inc. entered into a Loan Settlement Agreement with Oxford, which involved a payment obligation of $2 million to settle approximately $10.6 million in debt as of December 26, 2025 [2][3]. - The completion of the $2 million payment has fully satisfied and discharged all obligations under both the Settlement Agreement and the underlying Loan Agreement [3]. Strategic Implications - The CEO of KALA BIO, David E. Lazar, stated that the settlement removes a substantial overhang that was constraining the company's strategic flexibility, thereby enhancing stockholders' equity and confidence in the company's future [4]. - Following the settlement, KALA granted common stock awards totaling 400,000 shares to four new employees as an inducement to employment, approved by the Compensation Committee of KALA's Board of Directors [4].