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Kodak boss took out 1.75million stock options just one day before the failed photo company was awarded $765million in a taxpayer-funded loan to become a pharma giant - sending stock prices soaring by 734% and netting him more than $30million
Kodak’s CEO was awarded 1.75 million stock options that could net him a profit of more than $30million this week just a day before the Trump administration announced a $765million loan to develop generic pharmaceuticals. Jim Continenza, who heads the beleaguered Rochester, New York-based film company, and three other top Kodak executives were awarded stock options that included the right to buy Kodak stock at $3.03, $4.53, $6.03, and $12 per share until February 2026.
According to filings obtained by the Popular Information newsletter, Continenza was the primary beneficiary, having been awarded 1.75 million options. Most of those options - 981,707 shares - were purchased at a stock price of $3.03 per share. On Friday, Kodak’s share price closed at $21.85. That means if Continenza chose to sell those options, he would bank a profit of $18.47million. Continenza was also awarded options at $4.53, purchasing nearly 300,000 shares. If he chose to sell those options, he would earn a profit of $5.17million before taxes. SEC filings also indicate that Continenza bought 298,780 shares at $6.03 as well as 170,733 shares at $12 per share. Selling those at Friday’s stock price would net him a pre-tax profit of more than $6.4million. In total, the value of Continenza’s stock options, which were purchased on Monday, are $30million higher as of Friday thanks to the Trump administration’s loan. At the closing bell on Monday, Kodak stock was trading at $2.62 per share and the company was valued at $114.5million. By the closing bell on Friday, Kodak was trading at $21.85 per share with a market capitalization of $955million.
The recent windfall comes on top of another bulk purchase of options that were executed just as the company began negotiating with the federal government over two months ago. Earlier this week, Continenza admitted talks to turn the fallen photo giant into a pharma company began a month before he bought thousands of shares. Continenza, who only took over as de facto CEO last year, told CNBC Wednesday the initial discussions started in May. On June 23 he bought 46,737 shares for just $2.22. His profit for the June purchase alone stands at almost $1.6 million.
Board member Philippe Katz also purchased 5,000 shares that same day.
https://www.dailymail.co.uk/news/article-8582059/Kodak-boss-took-stock-options-day-failed-photo-company-awarded-taxpayer-funded-loan.html
technically not against the law however the awards were made with non-public info.
Should be illegal