Vinco Ventures (NASDAQ:BBIG) has made a name for itself by leveraging new market opportunities through its BIG strategy, an acronym for “Buy, Innovative, Grow.” The company is so focused on buying big that it opted to trade under the symbol BBIG. According to news that broke this morning, though, the company is more focused on selling today, as it filed an S-1 registration statement, announcing the resale of 115 million shares of common stock.
What’s Happening With BBIG Stock
Despite some highly publicized catalysts, October hasn’t been a good month for Vinco.
BBIG stock has been on a consistent, downward trajectory for the past week, falling by 18% over the past five days. The past month has been even worse, with shares falling by 37% despite an upcoming crypto catalyst.
Today, shares are currently down 9.4%, highlighting that this company has been plagued by uncertainty. This decline comes after a strong performance in September that left it a favorite for a short squeeze rally.
What It Means
The S-1 filed today is the “registration of the existing pre-disclosed shares” set forth in the company’s Sept. 15 proxy statement.
CEO Christopher Ferguson said of the decision “This aligns with our corporate strategy to leverage the existing warrants to raise the capital necessary to scale our business with no additional share issuances.”
It makes sense that the company would be seeking to address a clear problem. InvestorPlace contributor Muslim Farooque recently noted Vinco’s lack of stable cash flows, predicting that until the company could address this pressing matter, it would not be able to shake its “meme stock volatility.”
For investors, it is important to note however that this registration statement refers to shares being issued in connection with debt or warrants that already exist. This means that the only proceeds Vinco Ventures will bring home will come from any warrants that are exercised for cash.
Why It Matters
Volatility has certainly been the name of the game for BBIG stock. While this is common for meme stocks, the kind of declines we’ve seen recently can certainly be unsettling for investors. We know all too well that Wall Street hates uncertainty.
What we shouldn’t forget is that Vinco’s spinoff Cryptyde is slated to start trading on Oct. 15. This multi-arm venture has dealings in both blockchain technology development and NFT distribution platforms. Investors in such markets will be watching, and digital investment message boards will be buzzing with activity when this exciting spinoff drops.
BBIG may not be off to a good start this month but that doesn’t mean it isn’t worth watching as this catalyst nears. This doesn’t necessarily mean buy big, but it means watch carefully in the short term.
On the date of publication, Samuel O’Brient did not have (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.
