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 is a clinical-stage biopharmaceutical company focused on the research, development and commercialization of therapies for diseases of the eye. Co.'s product candidate, KPI-012, is a mesenchymal stem cell secretome (MSC-S) and is in clinical development for the treatment of persistent corneal epithelial defects, a rare disease of impaired corneal healing. In addition, Co. has initiated preclinical studies under its KPI-014 program to evaluate the utility of its MSC-S platform for inherited retinal degenerative diseases, such as Retinitis Pigmentosa and Stargardt Disease. According to our KALA split history records, KALA BIO has had 1 split.

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