Brett Molina, USA TODAY
Published 2:17 p.m. ET Aug. 4, 2020 | Updated 6:51 p.m. ET Aug. 4, 2020
President Donald Trump announces Eastman Kodak will receive a loan to help booster the country’s drug supply. (July 28)
Corrections and Clarifications: This story was updated to clarify the SEC is reportedly investigating how the deal between Kodak and the government was made public, and how details of the deal were made public to local news outlets.
The Securities and Exchange Commission is investigating how a deal involving a potential $765 million loan to Kodak was made public.
The Wall Street Journal reports one area investigators are reviewing is how the timing of the announcement may have contributed to a surge in Kodak’s stock price.
The details of the loan deal were revealed to local media outlets by the White House the day before the official announcement, which contributed to Kodak shares surging above $60. Shares of Kodak closed at $14.40 on Tuesday.
The SEC declined to comment on the report. In a statement obtained by USA TODAY, Kodak said it “intends to fully cooperate with any potential inquiries.”
The New York Post reported Kodak CEO James Continenza had purchased more than 46,000 shares on June 23, days before the announcement was made. His profit from the June purchase hit $1.6 million, said the report.
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In a statement, Kodak said the stock purchase was “in full compliance with regulatory guidelines for investment activity.”
The deal between the federal government and Kodak – best known for its film and camera technology – would grant the company a $765-million loan to help launch a pharmaceutical division aimed at producing more drugs domestically.
Contributing: Brian Sharp, Rochester Democrat and Chronicle. Follow Brett Molina on Twitter: @brettmolina23.
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