Shares of Vinco Ventures (NASDAQ:BBIG) are back in the spotlight following the release of a video message from co-CEO Ted Farnsworth. It appears Farnsworth was never terminated as co-CEO and is still in the position. A now-deleted press release on the investor relations page for BBIG stock had previously stated Farnsworth was terminated from his position.
First, Farnsworth apologized to BBIG shareholders, describing the company’s management issues as a “circus.” He also admitted that the company’s current situation stems from a lack of disclosures.
Furthermore, he states the whole situation started after John Colucci was recommended by company lawyers to step down from his position as director and co-CEO. Colucci was in noncompliance with Nasdaq listing requirements due to his dependent affiliation with the company. Afterwards, Colucci filed an unauthorized press release stating the details of the attempted hostile takeover.
Farnsworth clearly has an issue with Colucci, accusing him of “blocking the company right now from getting work done.”
Shares of BBIG stock bounced higher after the message, but still closed down more than 4%. Let’s get into the details.
Co-CEO Ted Farnsworth Sets the Record Straight on BBIG Stock
Farnsworth notes he was brought on as co-CEO to help finalize the deal between ZASH and Vinco. Meanwhile, MassNews reports that he is “unhappy with the delays in finalizing the joint venture.”
On top of that, Farnsworth adds an attempted hostile takeover never took place, explaining the joint venture deal between the two companies has been active for more than a year. In addition, he states that he helped raise all the money for the deal and brought on Lomotif and AdRizer.
Furthermore, Farnsworth questions Colucci’s experience. He accuses him of having “no public experience” and believes he is not qualified to be an independent director. The co-CEO also characterizes Colucci as a “charming guy,” but adds “smart people” will see right through his guise.
Farnsworth believes Colucci filed the unauthorized press release in an attempt to boost BBIG stock. That wasn’t the case, as Vinco recently hit a 52-week low.
To Vinco employees, Farnsworth advised them to “keep their head down” and to ignore the distractions.
The message from Farnsworth was certainly needed, as shareholders were previously left in a state of confusion. It can now be ascertained that Farnsworth is still the co-CEO. More details concerning management will likely be revealed at the company’s stockholder meeting on August 23.
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.