The shares of Kodak soared after news broke that the American technology company, has secured a $765 million loan to make ingredients for generic drugs.
According to reports, Kodak shares soared 1481 percent this week in massive trading as the Trump administration offered the former photography industry leader a financial lifeline.
Kodak which also tried its hand on cryptocurrency, is now worth $US1.5 billion from $US92 million. It might interest you to know that the stock sales were halted more than a dozen times within the first two hours of trading on Wednesday, a day after it more than tripled in value.
Despite the rush to buy Kodak shares, there are still a lot of concerns about the company’s capabilities to perform. Kodak filed for bankruptcy in 2012 after being ousted by its competitors in digital photography and failing to make good on an earlier multibillion-dollar acquisition of a pharmaceutical company. It also has little to show for the planned introduction of a cryptocurrency two years ago Bloomberg reports.
Trump administration officials and New York Governor Andrew Cuomo lauded the planned loan, administered by the U.S. International Development Finance Corporation under the auspices of the Defense Production Act.
“It’s going to be the renaissance of the great state of New York as an industrial power,” Peter Navarro, President Trump’s trade adviser, said in a Tuesday interview with Fox Business.
“And it’s going to give the people of our country some assurance that when push comes to shove in pandemics like this we won’t see what we’re seeing right now is over 75 countries restricting the sale of pharmaceuticals, or something, to us like face masks.”
Cuomo said the arrangement would result in the creation of 300 jobs. “Kodak has a long storied history in New York State, and we’ve been working with them to develop an even brighter future,” he said in a video presentation.