Kodak investigated over announcement of drug-making loan
THE US Securities and Exchange Commission is investigating the circumstances around Eastman Kodak’s announcement of a $765m (£585m) government loan to make drugs at its American factories, the Wall Street Journal has reported.
Shares at the former film company skyrocketed after the surprise announcement on Tuesday last week.
Jim Continenza, Kodak’s chairman and chief executive, was handed 1.75m stock options the day before news of the loan broke.
That Monday, Kodak’s shares climbed by 25pc.
Senator Elizabeth Warren has asked US regulators to examine possible insider trading and disclosure violations.
On the announcement, president Donald Trump said the federal loan would help reduce the United States’ reliance on other countries for the majority of ingredients used to make generic drugs.
Kodak shares were down 12pc at $13 in late trade yesterday, valuing the company at $579m.