Kala Bio (KALA) said Monday it agreed to a roughly $10.8 million private placement of common shares and series I convertible non-redeemable preferred stock with a select group of institutional investors.

The private placement includes about 1.3 million common shares at $6.44 apiece and 3,286 preferred shares at $644 per share. The offering is expected to close on Tuesday.

New and existing investors including SR One, Cormorant Asset Management and Woodline Partners will participate in the private placement, according to the company.

Kala Bio expects to use the proceeds to fund operations into Q1 2026, advance the development of the drug to treat persistent corneal epithelial defect, and general corporate purposes.

The company's shares were up nearly 3% in recent trading.

Price: 7.17, Change: +0.19, Percent Change: +2.72