- Vinco Ventures (NASDAQ:BBIG) stock closed up 4.6% today
- The company plans on spinning off its Cryptyde unit
- The record date for the spinoff falls on May 18
As a refresher, Vinco announced last September that it would spin off Cryptyde as a separate entity. The company will focus on cryptocurrency and non-fungible token (NFT) opportunities. At the time of writing, the Cryptyde website is still under construction.
Vinco recently filed an amended Form 10 to with the U.S. Securities and Exchange Commission (SEC) detailing the spin off. Let’s get into the details.
BBIG Stock: May 18 Set as Record Date
As of the market close on May 18, Vinco shareholders will receive one share of Cryptyde common stock for every 10 shares of BBIG stock owned. Vinco expects the distribution date to be on or before May 27. Shareholders of BBIG are not required to do anything to receive the share dividend.
Once the spinoff occurs, Cryptyde’s ticker symbol will be TYDE. Vinco has already applied with the Nasdaq exchange to list under TYDE. Meanwhile, Vinco will continue to trade on the Nasdaq under the ticker BBIG.
If the distribution is successful, Cryptyde will have $3 million of cash from BBIG and around $42 million of cash from private placements. The company will also have debt of $33.33 million from notes issued in the private placement.
Vinco also disclosed that the price of BBIG is expected to fall following the distribution. This is because the price will no longer reflect the Cryptyde business. In addition, Vinco and Cryptyde will have separate management teams.
What’s in Store for Cryptyde?
Cryptyde plans on completing a digital coin minting platform by the end of this year. The company has a goal of creating digital coins for use in consumer-facing industries. On top of that, Cryptyde’s Web 3.0 business plans on using decentralized blockchain technology in consumer-facing industries as well, such as in video games, music and art.
Cryptyde’s Bitcoin (BTC-USD) mining sector seeks to bring Bitcoin to the consumer level by “offering Bitcoin mining equipment and co-location services.” Its packaging business will also help it generate brand awareness.
On the date of publication, Eddie Pan 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.