Shares of Eastman Kodak Co. /zigman2/quotes/205109646/composite KODK -2.28% were down 24% in afternoon trading Monday, putting them on track for a third straight double-digit percentage decline, after the digital printing and film company, which is getting into the pharmaceutical-ingredients business, disclosed that holders of convertible notes were exercising their right to convert those notes into common stock. The stock has now dropped 50% since skyrocketing sixteenfold in three days to $33.20 on July 29, after the Trump administration announced on July 28 that Kodak had received a $765 million loan as part of a Defense Production Act directive to loosen the reliance on foreign sources for pharmaceutical ingredients. In an 8-K filing with the Securities and Exchange Commission on Monday, Kodak said the holders of the 5.00% convertible notes due 2021, which were issued in May 2019, are converted a total of $95 million of the notes into 29.9 million shares of Kodak common stock, on July 29. That would imply a value of $3.175 per converted share, while the stock was currently trading at $16.58. On July 27, Kodak granted Chief Executive James Continenza options to buy Kodak stock at various strike prices, which are now all in the money, to "protect" him from dilution of his share holdings, in case the convertible debt issued in May 2019 were converted into stock. Kodak's stock has now rallied nearly fourfold (up 256.6%) year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.72% has gained 2.0%.