Why Eastman Kodak Stock Plunged Today
Shares of Eastman Kodak (NYSE: KODK) plunged by as much as 11% today after the company reported full-year 2020 earnings results. Eastman Kodak also filed a mixed shelf registration that will allow it to sell securities, while also filing a separate shelf registration that will allow existing shareholders to unload up to 44.5 million shares over time.
Revenue in 2020 declined to $1 billion, which resulted in a net loss of $541 million for the year. The industrials company finished the year with $196 million in cash, but recently announced that it had secured access to additional capital to bolster its liquidity position. Eastman Kodak will get $310 million in incremental cash from a series of transactions that involve term loans, convertible preferred stock, and convertible notes.
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Source Fool.com
