Vinco Ventures (NASDAQ:BBIG) is urging investors to approve dilution proposals that will increase shares and authorize a reverse stock split.
“Your approval of the proposals up for consideration at the Annual Meeting is critical to enable Vinco to successfully execute on our growth and value creation strategy.
Approving the a360 acquisition – including the purchase of the National Enquirer – is an essential first step.
Further, approving the increase in authorized shares and reverse stock split will give the Company necessary financial flexibility to operate successfully and also address potential NASDAQ-delisting concerns.
We also strongly recommend shareholders vote FOR the reelection of our five Board members, who collectively possess the right industry experience and skillsets to oversee the successful execution of the Company’s strategy to unlock value for shareholders.”
But BBIG investors are currently suing the company and its executives in a new lawsuit.
The plaintiffs in the case are Shadwrick Vick, Christopher Muntz, and Darryl Wayne Genis.
BBIG investors believe that the company is failing everyday shareholders and must be held accountable for the significant losses seen in the market.
Many investors allege fraud could be at play.
Here’s the latest BBIG stock news today.
Vinco Ventures Addresses Shareholders
Vinco Ventures published a press release addressing BBIG shareholders of its plans to move the company forward.
“With our Annual Meeting coming up on April 27, 2023, I wanted to provide some important updates and background on the business and our strategy.
I also want to explain why it is critical that you vote FOR all the Company’s proposals at the Annual Meeting to allow us to pursue the strategy we have laid out to drive growth and enhance the value of your investment.
We have a high-quality leadership team and Board in place and are excited to execute on our business strategy,” said Rod Vanderbilt, Executive Chairman of the Board of Directors of Vinco Ventures.
However, shareholders aren’t budging.
One investor on Twitter says, “$BBIG I’ve read it, NO THANKS BUDDY too late to speak up now. We’ve asked for a plan for over a year, Now you want to address us?”
The company outlines several commitments to shareholders in its latest press release.
But Vinco Ventures main goal is to receive shareholder approval to dilute BBIG stock.
The proposals would increase the number of outstanding shares and issue a reverse stock split, similar to what AMC Entertainment is going through at the moment.
Dilution will certainly help Vinco Ventures raise the capital it needs to stay afloat, but at what cost for its shareholders?
Vinco Ventures Announcements
“Importantly, the transactions we have already announced – as well as those we are actively pursuing – our strategy is acquiring companies that are EBITDA positive.
By acquiring companies such as these that fit strategically into our model, we can realize synergies and cross-sell opportunities that can boost revenue and profitability.
We will be evaluating intellectual property portfolios, such as copyrights, patents, and trademarks, to increase our content library and expand our licensing opportunities.
We look forward to announcing synergistic transactions in the near term to drive our M&A growth strategy.
We have already taken the first step, announcing in February our joint venture agreement with ICON Publishing, LLC, resulting in a newly formed subsidiary of the Company, VVIP Ventures, LLC (“VVIP”).
We also announced that VVIP had entered into an Asset Purchase Agreement with magazine publisher, a360media, LLC, to acquire the National Enquirer, National Examiner, Globe, and National Enquirer UK print and digital publishing assets.”
Vinco Ventures states that shareholder approval of the proposals up for consideration at the Annual Meeting is critical to enable Vinco to successfully execute on their growth and value creation strategy.
I’m curious to know your thoughts – share them in the comment section down below.
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They can go bankrupt I have 10,000 shares at 11.24 so I’m down $11 a share and I’m not selling for a loss they’re Liars cheats and belong in jail. I went all in on the merger That was supposed to happen in November of 2021 that they don’t even discuss anymore. They forgave Ted’s 17 million loan I mean zash when they could have bought back stock or invested in tick tock influencers to come to Lomo.
I’m down 90%. Fffffffffffffuuuuuuuuuucccccckkkkk you.
Leave your thoughts below.