SCHEDULE: SR One Capital Reduces KALA BIO Stake Below 5%

SR One Capital Management entities have reduced their beneficial ownership in KALA BIO, Inc. to 4.6% after converting preferred stock and selling common shares.

Summary

• SR One Capital Fund II Aggregator, LP converted 4,110 shares of Series H Preferred Stock of KALA BIO, Inc. into 411,000 shares of Common Stock on October 7, 2025.
• Following the conversion, on October 14, 2025, Aggregator sold 66,824 shares of KALA BIO's Common Stock in a series of open market transactions.
• As a result of these transactions, the Reporting Persons (SR One Capital Fund II Aggregator, LP, SR One Capital Partners II, LP, SR One Capital Management, LLC, and Simeon George, M.D.) now beneficially own an aggregate of 344,176 shares of Common Stock.
• This aggregate beneficial ownership represents 4.6% of KALA BIO's outstanding Common Stock, calculated based on 7,432,040 shares.
• Each Reporting Person has ceased to beneficially own five percent (5%) or more of KALA BIO's Common Stock as of October 14, 2025.

Sentiment

Score: 3

Explanation: The reduction of a significant institutional investor's stake below the 5% threshold, coupled with open market sales, typically signals a negative sentiment or a strategic exit, which can be perceived as a lack of confidence in the company's future prospects by a major holder.

Negatives

• A significant institutional investor, SR One Capital, has reduced its beneficial ownership in KALA BIO, Inc. below the 5% threshold.
• The sale of 66,824 shares of Common Stock in open market transactions indicates a reduction in their investment.

Risks

• Reporting Persons may dispose of additional shares of KALA BIO, Inc. depending on market conditions and other factors.

Future Outlook

Reporting Persons may dispose of additional shares of KALA BIO, Inc. depending on market conditions and other factors. No other present plans for extraordinary corporate transactions, changes in management, capitalization, or corporate structure are indicated.

Industry Context

This filing primarily details a change in beneficial ownership by an institutional investor and does not provide sufficient information to analyze broader industry trends or competitors.

Stakeholder Impact

• Shareholders: May experience decreased confidence due to a major investor reducing their stake, potentially leading to downward pressure on the stock price.

Next Steps

• Reporting Persons may dispose of additional shares of KALA BIO, Inc. in the future.

Key Dates

Recommendation

The reduction of a significant institutional investor's stake below the 5% threshold, following open market sales, suggests a potential loss of confidence or a strategic divestment. This action by a sophisticated investor could signal future selling pressure or indicate concerns about the company's prospects, warranting a 'sell' recommendation for other investors.

Keywords

KALA BIO, SR One Capital, Schedule 13D, Common Stock, Preferred Stock Conversion, Beneficial Ownership, Stock Sale, Institutional Investor