Vinco Ventures(NASDAQ:BBIG) is trending, and BBIG stock is down about 8% in early trading. The company disclosed that it had received a “non-compliance” letter from theNasdaqexchange and announced that it had appointed three co-CEOs.
BBIGhas an 80% stake in“video sharing site Lomotif,” which is viewed by many as a direct competitor toTikTok.
The Non-Compliance Letter
Vinco statedin a press release issued last nightthat it had violated a Nasdaq rule requiring it to disclose its second-quarter financial results, through the U.S. Securities and Exchange Commission’s (SEC) 10Q form, by Aug. 22.
According to the company, it will be given until Oct. 17 “to submit a plan to regain compliance with the requirement.” At that point, Nasdaq could grant Vinco until Feb. 13, 2023, to disclose its Q2 financial results.
Vinco reported that it “intends to file the Form 10-Q as promptly as possible in order to regain compliance with the Rule and will submit a plan of compliance as required by the Rule.”
BBIG Stock: Management Changes
Vinco disclosed that it had named three individuals –Ross Miller, John Colucci, and Lisa King — as co-CEOs.
Miller had been CEO of BKB Global, which is owned byDirectTV. He was also “Senior Vice President and General Counsel of Paragon Gaming, an international casino gaming company based in Las Vegas.” Meanwhile, Colucci was “the Vice President” of a marketing company for 11 years, while King was previously the CEO of both Vinco and its parent company,ZASH,which owns Lomotif.
The Implications for BBIG Stock
Vinco’s board and its leadership team seem to have been quarreling a great deal amongst themselves over the last several weeks. Moreover, the three, current co-CEOs are likely to have difficulties reaching consensus among themselves and making decisions.
Consequently, Vinco’s execution will probably not be great going forward, causing BBIG stock to be very risky at this point.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap.
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