logo
Plus   Neg
Share
Email

SEC Probes Over Kodak Loan Disclosure And Stock Movement : WSJ

The U.S. Securities and Exchange Commission is investigating the circumstances around Eastman Kodak Co.'s (KODK) announcement of a $765 million government loan to make ingredients for Covid-19 drugs, the Wall Street Journal reported citing people familiar with the matter.

The company's stock closed down 3.61 percent at $14.40 after the Journal report.

On July 27, a day before Kodak's official announcement of the loan, the company's trading volume skyrocketed and stock price rose about 25 percent. After the official announcement on July 28, the stock jumped over 200 percent. Shares continued to surge by over 300 percent the next day to close at $33.20 per share on July 29, 2020.

The Journal said that the agency is also investigating additional allegations of insider trading, specifically involving 1.75 million in stock options granted to chief executive officer Jim Continenza the day before the official loan announcement.

However, the company reportedly said those were regularly scheduled purchases and Continenza has not yet cashed in by selling off any shares.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT