Vinco Ventures (NASDAQ:BBIG) announced a new 1-for-20 reverse stock split on Wednesday.
The company announced that on May 4, 2023 it filed a Certificate of Change with the State of Nevada for a 1-for-20 reverse split of its issued and outstanding shares of common stock.
This reverse split was approved by its Board of Directors, and the shares of its common stock will begin trading on a split-adjusted basis at the commencement of trading tomorrow, May 11, 2023.
The common stock shares will trade on the Nasdaq Capital Market under the same symbol “BBIG”.
BBIG stock fell more than -11% during the announcement.
If the stock closes anywhere between $0.15-$0.16, shares will trade around $3-$3.20 on Thursday.
However, shares will be converted to 1 share for every 20 shares held.
For example, if a shareholder holds 100 shares of BBIG stock, starting Thursday they will now hold 5 shares.
Mullen Automotive (NASDAQ:MULN) also announced a reverse stock split last week, 1-for-25.
AMC Entertainment (NYSE:AMC) is currently fighting a lawsuit against shareholders who oppose the proposals to dilute the stock, convert APE in common shares, and issue a 1-for-10 reverse stock split.
Vinco Ventures stock is down more than -65% this year-to-date.
Vinco Ventures Statement on Reverse Stock Split
“We wish to thank our investors for their continued support as we work to refocus Vinco’s operations.
The approval of the reverse split under the Company’s plan to maintain its Nasdaq listing, together with our ongoing refocusing efforts, better positions us to realize the great potential we see ahead,” stated James Robertson, Chief Executive Officer.
The amount of common stock outstanding will be reduced from approximately 260 million shares to approximately 13 million shares.
Proportional adjustments will be made to the number of shares of common stock issuable upon exercise of the Company’s outstanding stock options and warrants, as well as the applicable exercise price.
The Company expects that the reverse stock split, which was approved by shareholders at its shareholder meeting on April 27, 2023, will increase the market price per share of the Company’s common stock, bringing the Company into compliance with The Nasdaq Capital Market’s $1.00 minimum bid price requirement.
“No fractional shares will be issued in connection with the reverse stock split.
Any fractional shares created as a result of the reverse stock split will be rounded up to the nearest whole share for each stockholder.
The reverse stock split impacts all holders of Vinco’s common stock proportionally and will not impact any shareholders’ percentage ownership of common stock (except as to rounding up changes).”
Latest BBIG Stock News
Like most investors who face reverse stock splits from a company, most investors hope the company will organically be able to overcome the challenges in the market without resorting to a split.
Recently, BBIG investors took Vinco Ventures Board of Directors to court in efforts to stop the reverse stock split and dilution.
The BBIG community raise more than $42K to support the plaintiffs in this court case.
Shad Vick, a plaintiff in the Vinco Ventures lawsuit says his committee used $25,000 from the fund raiser for a retainer fee for Hutchison & Steffen Attorneys in the state of Nevada.
He says some money has also been used for a previously opened pro per case (self-representation) in the 8th judicial court.
“That amendment to our articles of incorporation and addition of preferred shares without shareholders vote was illegal.
We are attempting to stop the reverse split and dilution that we believe was rammed through an illegal proxy and invalid shareholders meeting.
We are not seeking any compensation on this case, only to get control of our company and investment from this corrupt board in collusion with Theodore Farnsworth,” said Shad.
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