Eastman Kodak Co. (NYSE: KODK) fell below USD 10 per share today as the U.S. government blocked a USD 765 Million loan to the company. The loan was going to allow the company to make drug ingredients to utilize in potential COVI-19 vaccines due to “alleged wrongdoing” by executives. The United States International Development Finance Corp. would have granted the loan to the company as it is looking to dive further into the pharmaceutical industry.
Democratic lawmakers had requested that federal regulators investigate securities transactions made by Kodak and its executives around the time it learned that it could receive the government loan. Donald Trump reported last week the governments investigation under these circumstances. “Recent allegations of wrongdoing raise serious concerns,” U.S. International Development Finance Corp (DFC) said late on Friday in a tweet.
Share value of Kodak has risen over 4 times over upon the DFC announcement that it will sign a letter of interest to provide the loan to the company.
Written by Bryan Shin.
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