Vinco Ventures (NASDAQ:BBIG) stock is in the spotlight today after a Form 8-K revealed that the recent appointment of John Colucci to interim co-CEO is noncompliant with Nasdaq listing requirements. The company also announced that former CEO Lisa King stepped down earlier this month. Meanwhile, the board appointed Theodore Farnsworth as co-CEO on July 14.
Nasdaq requires the board of any company to be comprised of a “majority of independent directors.” A director who is independent should not serve on the executive team or be involved with day-to-day operations. As a result of Colucci’s appointment, Vinco’s board now consists of a majority of non-independent directors. The company is well aware of this and notified the Nasdaq of its noncompliance on July 22.
How does Vinco plan to alleviate the noncompliance? Let’s get into the details.
BBIG Stock: Colucci Appointment Is Noncompliant With Nasdaq Requirements
To rectify the noncompliance, the Chairman first recommended that Colucci step down as director immediately for the next 60 days. The board agreed to replace the vacant director seat within the next 30 days as well.
In the meantime, Colucci will focus on financial and operational aspects of the company. Farnsworth will focus on both public and investor relations. While Colucci’s compensation remains undecided, Farnsworth will forego all compensation.
Colucci has only served as a director since June 10. According to the Form 8-K, the executive has “over 21 years of experience” in business management. Most recently, Colucci served as the President of American Marketing & Mailing Services.
Moving forward, former CEO Lisa King will also still work with Vinco. King will serve as President of ZVV Media Partners, a subsidiary of the company. ZVV owns 80% of the outstanding equity interest in TikTok competitor Lomotif, which the company acquired last year.
Vinco rebranded Lomotif to LoMo as a result of the acquisition and characterizes it as “one of the top short form video platforms in the world.” According to Sensor Tower, the app is currently active in 102 countries and received 300,000 downloads last month.
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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.