When a company such as KALA BIO conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the KALA split history from start to finish, an original position size of 1000 shares would have turned into 20 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into KALA BIO shares, starting with a $10,000 purchase of KALA, presented on a split-history-adjusted basis factoring in the complete KALA split history.

About KALA BIO

KALA BIO, Inc. is a clinical-stage biopharmaceutical company. Co. is engaged in the research, development and commercialization of therapies for rare and severe diseases of the eye. Co.'s biologics-based investigational therapies utilize its proprietary mesenchymal stem cell secretome (MSC-S) platform. Co.'s product candidate, KPI-012, is a human MSC-S, which contains numerous human-derived bio factors, such as growth factors, protease inhibitors, matrix proteins and neurotrophic factors that can potentially correct the impaired corneal healing that is an underlying etiology of multiple severe ocular diseases. According to our KALA split history records, KALA BIO has had 1 split.

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