Internal management conflict has been a key issue for Vinco Ventures (NASDAQ:BBIG) during the past year, and it doesn’t seem to be over. Yesterday, ZASH CEO Erik Finman tweeted out an ultimatum to Vinco President Gabe Hunterton and CEO Ross Miller:
I am giving a 1 week ultimatum to @gabehunterton (and his proxy @rossjmiller) to publicly announce a finished merger.
Otherwise resign and be replaced with someone that *can* bring stability.
— ERIK FINMAN 🪖 (@erikfinman) November 28, 2022
Finman, self-described as the “youngest bitcoin millionaire,” was appointed CEO of ZASH last July. Upon his appointment, Finman was made in charge of overseeing and expanding cryptocurrency and non-fungible token (NFT) opportunities for the company.
Now, it appears that his focus is to speed up the merger between ZASH and Vinco. That’s because the two companies previously formed a joint venture called ZVV Media Partners. ZVV owns an 80% ownership stake in the short-video sharing platform Lomotif, which is a key asset of both Vinco and ZASH. Since its inception in 2014, Lomotif has been downloaded over 225 million times across 200 countries.
BBIG Stock: Internal Drama Continues
Finman also issued another tweet today detailing what he would do if he were in the shoes of Hunterton and Miller. First, he would wrap up the merger and then upgrade Lomotif to its 2.0 version. He would then fully integrate AdRizer into Lomotif. AdRizer is used for advertisements and provides analytics and revenue optimization for advertisers. In October, Vinco announced that it had launched the beta version of Lomo Ads that was powered by AdRizer.
Finally, after integrating AdRizer into the platform, Finman would have “Done a Media Victory Lap.” He concluded that the four steps: “Literally takes weeks” to complete.
Internal conflict aside, Vinco is also dealing with regulatory issues. Yesterday, the company received a notice from Nasdaq regarding its failure to file an earnings report, or a Form 10-Q, for the quarter that ended Sept. 30. The deadline for the submission was Nov. 14. In fact, Vinco hasn’t even filed a Form 10-Q for the quarter that ended June 30. In response, Vinco stated that it has filed a plan of compliance to Nasdaq to submit the two forms no later than Jan. 30, 2023. The company will submit an update to the plan no later than Dec. 19.
With internal and regulatory issues abounding, investors should stay far away from BBIG stock until the dust settles.
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.
