09:03 AM EDT, 06/27/2024 (MT Newswires) -- Kala Bio ( KALA ) said Thursday it has signed a securities purchase agreement with a group of institutional investors to sell common stock and series H convertible non-redeemable preferred shares in a private placement for gross proceeds of about $12.5 million.

Under the terms, the company will sell about 1.2 million shares at $5.85 apiece and 9,393 shares of series H preferred stock at $585 per share, Kala said.

The private placement is expected to close around Friday.

Kala intends to use the net proceeds to advance development of KPI-012 to treat persistent corneal epithelial defect, and for general corporate purposes.

Kala shares rose by nearly 30% in premarket trading.

Price: 5.8900, Change: +1.37, Percent Change: +30.31