KALA Stock Hits Record Low – Firm Announces Reverse Split After Shares Fail To Surpass The $1 Mark

• The company’s outstanding shares will be reduced from roughly 929.5 million to around 18.6 million shares.
• Kala Bio had until July 20, 2026, to regain compliance with Nasdaq’s minimum price requirement of $1 per share.
• The Board of Directors had the option to effect a reverse stock split in a ratio ranging from 1-for-2 to 1-for-100. 

Shares of Kala Bio (KALA) plunged more than 27% to a record low on Thursday after the company announced a reverse stock split, following months of relentless decline that kept the stock from reclaiming the crucial $1 threshold even once this year.

Kala Bio said it will implement a 1-for-50 reverse stock split, effective after the closing bell on May 8. The stock will begin trading on a split-adjusted basis on Nasdaq from May 11.

Following the move, the company’s outstanding shares will be reduced from roughly 929.5 million to around 18.6 million shares.

KALA Shares Fell Below $1 In December 2025

Kala Bio has until July 20, 2026, to regain compliance with Nasdaq’s minimum price requirement of $1 per share. It had received a notice from the exchange in January for failing to trade above the threshold for 30 straight business days between Dec. 3, 2025, and Jan. 16, 2026.

Following the notice, the company held a special stockholder meeting on January 30, at which shareholders approved the Board of Directors’ authorization to effect a reverse stock split at a ratio of 1-for-2 to 1-for-100.

Retail Urges Buying The Dip

Despite the intraday slump, retail sentiment on Stocktwits changed to ‘neutral’ from ‘bearish’ a day earlier.

Chatter was largely positive, with one user stating that they would buy more shares.

KALA shares have plummeted 86% so far this year.

‘Palantir For Biotech’

Earlier this year, the company unveiled the Researgency.ai platform designed for biotech and pharmaceutical companies to help automate research and drug development tasks.

It can support clinical trials, regulatory document management, drug safety tracking, and commercial launch preparation, the company said.

“We are building the Palantir for biotech,” CEO Avi Minkowitz stated.

Read also: ATRA Stock Sees Biggest Single-Day Gain In Over 2 Years, Breaches Key Technical Milestone – New FDA Update Has Bulls Circling Back

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