Chairman of U.S. Securities and Exchange Commission Jay Clayton on the recent stock crash of Kodak and Chinese companies listed on U.S. exchanges.
Eastman Kodak Co. shares fell Monday by as much as 43% after a $ 765 million loan to help the company’s pivot in the manufacture of drug ingredients was suspended pending an investigation.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| KODK | EASTMAN KODAK CO. | 10.56 | -4.32 | -29.04% |
“Recent allegations of crime are causing serious concern,” tweeted the U.S. International Finance Corp., which invests in the development and advancement of U.S. foreign policy, Friday night. “We will not proceed unless these allegations are dispelled.”
The U.S. Securities and Exchange Commission is investigating how the $ 765 million loan was announced. Local media in Rochester, NY, reported the news on July 27 before scrubbing their stories from the internet after a Kodak representative asked them to do so.
Regulatory filings show that operators were traded options at the end of June and that CEO Jim Continenza was granted additional options for 1.75 million shares.
Kodak’s advances in the pharmaceutical sector, which were part of President Trump’s plan to use the Defense Production Act to return critical drug ingredients to the US, sent shares up as much as 29,000% in the US two trading days after the announcement, from $ 2.62 to an intraday high of $ 60.
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Shares traded below $ 9 on Monday before stopping after a small bounce.
