The deal was announced on Tuesday. President Trump said the federal loan from the U.S. International Development Finance Corporation would help reduce the United States’ reliance on other countries, in particular China and India, for the vast majority of ingredients used to make generic drugs. Mr. Trump called the Kodak deal “a breakthrough in bringing pharmaceutical manufacturing back to the United States.”
Kodak said it was creating a new pharmaceuticals division and will expand its facilities in Rochester, N.Y., and St. Paul, Minn. The division will eventually have the capacity to produce as much as 25 percent of the active ingredients used in generic drugs in the United States. Kodak has been in the chemicals business for more than a century and “has the facilities sitting there ready to go,” Mr. Continenza said in a TV interview this week.
It’s unclear whether the ingredients that Kodak makes will have any role in the fight against the coronavirus. Kodak will coordinate with the federal government and other manufacturers to figure out which ingredients to make, prioritizing those that are deemed critical to Americans and national security.
The day before the loan was announced, trading in Kodak shares surged, and its stock jumped about 25 percent, closing at $2.62 a share. That activity raised suspicion about improper trading ahead of the market-moving news, but The Wall Street Journal reported that it was apparently the result of reports by the media in Rochester, where Kodak is headquartered, about the pending announcement.
Around the time that Kodak began talking with the federal government this spring, Kodak insiders began receiving stock options. The pattern was first reported by Non-GAAP Thoughts, a digital newsletter.
On May 20, Kodak handed out 240,000 stock options to board members — an addition to its usual equity distribution in January.
The May stock options awarded to directors are now worth about $4 million. Those options are eligible to be exercised gradually over the course of this year.
flyrugbyguy on August 1st, 2020 at 02:02 UTC »
Guess no one knows how stock options work huh? These are all planned quarterly events. Execs have lower salaries and make their money through stocks/options, which gives them a reward based on the performance of their company which is theoretically reflected in their share price. Stock options are only worthwhile if the company does well in this case it happened to be good timing but it was pre-planned.
He cannot sell his stock when he wants, he has to file it with the SEC in advance and let them know the date he decides to sell. There are rules surrounding this but I am not educated enough on.
imathrowawayguys12 on August 1st, 2020 at 01:45 UTC »
The title (and OP's comment) makes it seem like a insider trade took place but the distribution to the CEO was scheduled long before. I believe this is considered "fake news"?
sebileis on August 1st, 2020 at 00:52 UTC »
Kodak’s still a thing?