Kodak’s stock nearly triples after the report of a $ 765 million government loan to help produce generics
Shares of Eastman Kodak Co. KODK,
nearly tripled (+ 192%) in very active premarket Tuesday to a peak of 2 1/2 years, after a report that the print and advanced materials and chemicals company had received a $ 765 million government loan to help produce medications to treat a variety of medical conditions. Trading volume rose to 10.3 million shares, compared to the daily average of about 272,000 shares, and enough to trade the stock most actively on the pre-market. The Wall Street Journal reported that the loan comes from the US International Development Finance Corp., a government agency that works as a bank, and is provided under the Defense Production Act, to reduce reliance on foreign sources. The loan is intended for Kodak to produce starting materials and active pharmaceutical ingredients used to produce generics, the WSJ report said. The stock, which was on track to open at its highest price since February 2018, was down 43.7% through Monday, while the S&P 500 SPX,
has won 0.3%.