Martin Shkreli Sells KaloBios Share For $5.9M
Martin Shkreli, who is facing federal criminal charges, bought shares of the company in November when it was a penny stock. The transaction occurred a month before his arrest. The company was in fairly bad shape and was liquidating its assets. Shkreli paid a little more than $3.2 million for a controlling share.
On Monday, KaloBios said Shkreli sold his shares during a private transaction, getting $3.10 a share – a total of $5.9 million or a profit of $2.7 million.
When Shkreli invested in KaloBios, it breathed new life into its company and stock, increasing its stock 400 percent. He was dubbed the CEO and would hire employees that had been laid off.
However, it was just a few weeks later when federal authorities placed him under arrest for running a Ponzi scheme. They alleged he looted funds from another company he was in charge of.
After his arrest, KaloBios removed him as CEO and he stepped down from being Turing Pharmaceutical’s CEO. It wasn’t long after his arrested that KaloBios had to file for bankruptcy. It only came out of bankruptcy protection in June. He kept a major stake in it throughout the whole process.