BBIG Stock: Can Vinco Ventures Regain Nasdaq Compliance?

  • Vinco Ventures (BBIG) has filed a Plan of Compliance to Nasdaq.
  • The company currently has short interest of 17.10%.
  • BBIG stock is down more than 40% year-to-date (YTD).
Vinco Ventures' (BBIG) Lomotif (mini music videos creator) app for download shown on Play Store app for Android smartphone. Mobile device technology concept.
Source: lidiasilva / Shutterstock.com

Vinco Ventures (NASDAQ:BBIG) is in focus today after the company disclosed in a Form 8-K that it had filed a Plan of Compliance to Nasdaq on Oct. 17 regarding its stock trading under $1 per share. On Aug. 26, Vinco disclosed that it had received a deadline of Oct. 17 to file the plan. However, the details of this plan were not disclosed in the filing. BBIG stock currently trades in the mid-90 cents range, just barely below the Nasdaq’s $1 threshold.

This year, Vinco has been through a slew of drama concerning its management team, although it appears that the matter has since been resolved. Specifically, the Farnsworth Group allegedly attempted a hostile takeover of the company, seeking to appoint Ted Farnsworth as CEO. The situation was eventually settled in court with Ross Miller appointed as CEO.

Here’s what BBIG stock investors should know as shares trend today.

BBIG Stock: Can Vinco Ventures Regain Nasdaq Compliance?

Right now, investors are calling for a short squeeze to reach the $1 threshold. That certainly seems possible. Short interest as a percentage of float currently sits at 17.10% for BBIG, equivalent to 35.97 million shares worth $33.81 million. In addition, it would take 2.1 days to cover the sales sold short, which means that shares shorted are equal to 2.1x the average daily trading volume of BBIG stock.

That aside, Vinco’s Lomotif subsidiary recently launched the beta version of Lomo ads and integrated Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Ads into its platform. Lomotif operates as a short-video-sharing platform that rivals TikTok.

The beta version of Lomo ads will support “programmatic and automatic advertising” on Lomotif. The platform seeks to eventually give creators a revenue-share on advertising and content as well. That may attract further creators to post on the platform in the future. Finally, Lomotif also plans to eventually incorporate “blockchain technology.”

CEO Ross Miller added the following about the ad update:

“The integration of Google Ads inside Lomotif is a key step to the growth of our business and brings enormous potential to both Lomotif and the entire Vinco Zash ecosystem. I believe this integration significantly strengthens our foundation and marks the beginning of a new chapter within the company.”

According to Vinco, companies like Coca-Cola (NYSE:KO) and Starbucks (NASDAQ:SBUX) have already initiated ads on the Lomotif platform. Vinco has yet to release key statistics concerning Lomotif, however, such as daily or monthly active users. Still, the company says the application has received more than 225 million installations in over 200 countries.

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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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/bbig-stock-can-vinco-ventures-regain-nasdaq-compliance/.

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