Vinco Ventures (NASDAQ:BBIG) stock is up a staggering 20% today on news that the company has set May 18 as the record date for its shareholders to participate in the long-awaited Cryptyde spinoff and receive a special dividend.
Vinco Ventures is essentially a holding company. Based in Pennsylvania, it owns social media platform Lomotif, which is similar to TikTok. Cryptyde is Vinco Ventures’ cryptocurrency and non-fungible token (NFT) unit, and its spinoff has long been rumored but repeatedly delayed.
That the date of May 18 has now been set for the Cryptyde spinoff has investors bidding up the stock today.
Prior to today, BBIG stock had been down 1% on the year at $2.57 per share.
What Happened With BBIG Stock
In a news release, Vinco Ventures has set May 18 as the record date for the Cryptyde dividend to be distributed to BBIG shareholders. This means that every Vinco Ventures shareholder as of May 18 will receive one share of Cryptyde common stock for every 10 shares of Vinco Ventures common stock they hold. Vinco expects to distribute the dividend on or around May 27.
The special dividend will come as a result of Vinco Ventures and Cryptyde separating into two independent, publicly traded companies. Following the separation, BBIG shareholders will also receive cash in lieu of any fractional shares of Cryptyde common stock that they hold after application of the 10-for-1 stock distribution. Vinco Ventures shareholders do not need to do anything to receive the Cryptyde shares.
Why It Matters
After the separation is final, Cryptyde’s common stock will trade on the Nasdaq exchange under the ticker symbol TYDE and Vinco Ventures will continue to trade on the Nasdaq under the symbol BBIG. News of the long-anticipated Cryptyde spinoff is welcome by Vinco Ventures investors as it’s seen as a catalyst to unlock value.
However, the spinoff of the Cryptyde business unit comes an at inopportune time for the cryptocurrency sector. Prices for major digital coins and tokens such as Bitcoin (BTC-USD) and Ethereum (ETH-USD) have been falling in recent weeks. BTC fell 10% yesterday to now trade near $35,000 per coin. ETH also fell sharply.
How well Cryptyde stock performs once it begins trading on the Nasdaq is unknown. But investors are reacting today to news they will finally get the special dividend from the spinoff of the crypto and NFT unit.
BBIG stock gets a huge move higher today on news that it has set a date for the Cryptyde spinoff. How Vinco Ventures shares perform after the separation from Cryptyde remains to be seen. But today, investors are cheering the separation and hoping for the best moving forward.
On the date of publication, Joel Baglole 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.