After falling hard from its high in September, Kodak (NYSE:KODK) stock is blasting off again on Monday morning.
This major boost comes after the Wall Street Journal reported that a federal agency found no wrongdoing in regards to a $765 million government loan for Kodak to assist in the novel coronavirus treatment process. However, it is not clear whether or not the loan will actually come to fruition.
According to the article, Sen. Elizabeth Warren called for an investigation. Last week, Anthony Zakel, the inspector general for the U.S. International Development Finance Corporation, provided his assessment. In that response, Zakel said he did not find “any evidence of misconduct on the part of DFC officials.”
Moreover, a vital part of the loan approval was the fact that companies pivot from their core businesses to the Covid-19 fight. Remember, Kodak was hoping to use the loan to convert factories to produce generic medication such as hydroxychloroquine. Importantly, this comes as many other companies have pivoted to address the pandemic. For example, Dyson — the company know for its innovative vacuums, fans and other items — began making ventilators early on in the pandemic.
“We focused our review on issues within DFC [office of the inspector general’s] purview and authority. We did not review conduct by Kodak or non-DFC personnel,” Zakel said.
KODK stock was up more than 50% as of Monday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.