Posted on 08/10/2020 11:41:37 AM PDT by spacejunkie2001
Eastman Kodak's (NYSE:KODK) hopes of becoming a key supplier to the pharmaceutical industry just hit a major snag.
The one-time camera and film giant was attempting to use a $765 million loan from the U.S. government to pivot its ailing business. Its plan was to launch Kodak Pharmaceuticals, which would produce pharmaceutical ingredients deemed critical in the fight against COVID-19.
Now, those plans have been thrown into disarray.
A downwardly sloping stock chart. EASTMAN KODAK'S STOCK PLUMMETED ON NEWS THAT ITS LOAN COULD BE IN JEOPARDY. IMAGE SOURCE: GETTY IMAGES.
The Defense Production Act loan was awarded to Kodak by the U.S. International Development Finance Corporation (DFC) at the direction of President Donald Trump on July 28. Kodak's stock soared on the news, from a closing price of $2.62 on July 27 to as high as $60 on July 29. Part of the problem, however, is that Kodak's shares rose nearly 25% in heavy trading on July 27 -- the day before the official announcement was made.
Moreover, many people are questioning why it was Kodak that received the loan, which was meant to bolster the nation's stockpile of vital coronavirus-related medical supplies, rather than an experienced pharmaceutical company. Perhaps even more puzzling is why Kodak's board of directors chose to grant executive chairman Jim Continenza options for 1.75 million of the company's shares one day before the deal was announced.
(Excerpt) Read more at fool.com ...
Since the subject is COVID the loan will go through.
No bureaucrat wants the heat of being blamed for a lack of drugs or treatments for that.
Didn’t Kodak go way up recently????
Trump wants Pharma products made in the USA-—NOT CHINA or elsewhere.
Yeah they skyrocketed after Trump announced they were becoming a drug company.
I don’t like the idea of my tax dollars paying for one of the worst run companies in the country to change their business to something almost entirely unrelated to their core (failed) business. There must be better candidates. Ones that might actually succeed and payback said “loan”.
The smaller investor won't be so lucky.
Bet more than one someone.
I wonder how many are in Congress...
I don’t like the fact that it’s propping up jobs and the local economy for Andrew Cuomo. If you’re going to do that, do it in some state where Trump actually has a shot.
Put Bill Belichick in charge. it will succeed.
Loan was for Generics not CV 19
It popped 25% the day BEFORE the announcement was made public.
Purely a coincidence. I’m sure.
They are a chemical company, generics are chemicals.
They are well tooled for that type of production
one of the big draws of kodk is the infrastructure that already exists at their plant. this is hugely valuable. kodk has it’s own power plant; and entire, self sustaining campus
it’s a loan not a grant so, in theory anyway, the US should be paid back.
I will note that one of 6 priorities for DJT in his 2nd term is to make the US a world renowned drug hub. Kodak is well positioned for that.
Different kind of chemicals. And they’re poorly run. This is a company that had multiple imaging markets cornered and lost them ALL. They WILL screw this up. They’re Kodak, they’re incompetent.
Next bankruptcy that infrastructure will be available cheap.
is it the same leadership? I have not followed this very closely
Only if the company actually succeeds. Which Kodak has an established history of NOT. Kodak isn’t well positioned for anything except failure.
The board of directors is too dumb to trust with the job. Sorry shareholders.
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