Attendees speak with company representatives in the Eastman Kodak booth at the International Consumer Electronics Show.
Daniel Acker | Bloomberg | beautiful images
An agreement that Eastman Kodak would have received to produce medicinal ingredients that could help fight coronavirus was suspended.
In a tweet on Friday night, the US International Development Finance Corporation said it was holding on to the deal as reporting regulators were looking at trading activity that caused Kodak̵7;s shares to skyrocket when there are news about the original deal.
“We will not proceed further unless these allegations are clarified,” DFC said.
An investigation by the Securities and Exchange Commission is focused on Kodak, once known for making film cameras, has revealed its deal with the government, according to a Wall Street Journal report on Tuesday. . The Journal reported earlier this week that the investigation is in its early stages and may not have raised allegations of misconduct.
When the news came out, Kodak, which was trading at $ 2.62 a share on July 27, the announcement date, hit $ 60 within two days. Shares closed at $ 14.88 on Friday after losing 7.6% in the session.
Kodak reported this to local reporters in Rochester, New York, where the headquarters is located, on July 27, then asked some of the stores to collect the story to remove it. Questions have been raised by Sen. Elizabeth Warren, D-Massachusetts, and others about the possibility of insider trading in relation to the announcement.
White House economic adviser Peter Navarro on Friday praised the DFC’s move, saying he was “very disappointed” on the allegations.
CNBC has reached out to Kodak for comment.