Stock Market
Kodak Shares Plunge 29% on Monday as US Government Blocks $765m Loan
Kodak Shares Decline by 29% as US Government Blocks $765m Loan
Kodak stock extended its decline on Monday after the US government stopped the $765 million loan deal that bolstered the stock in the first place.
Kodak shares rose more than 1500 percent from $2.62 per share recorded on July 27 to $33.29 per share on July 29 without any solid fundamental reasons except the news of the $765 million loan.
However, the exceptional jump in the value of the company’s share raised eyeballs in the US parliament, prompting the U.S. government to call for an investigation into the activities of the company and its executives around the time it learned it could be approved government loan.
On Friday, U.S. International Development Finance Corp (DFC), in a tweet, said “Recent allegations of wrongdoing raise serious concerns.”
The stock plunged by 29.54 percent or $4.41 on Monday to $10.52 per share.
Two weeks ago, Investors King had detailed why the sudden surged in Kodak stock was not sustainable given the company’s lack of experience in the pharmaceutical industry.
“Kodak has no known pharmaceutical product or history with pharmaceutical products rather the struggling photography company is looking to take advantage of unrestrained funds going into the health sector given global pandemic,” Investors King stated last week.
