Shares of Vinco Ventures (NASDAQ:BBIG) are trending today on news the holding company has appointed a new board director who will oversee corporate governance. The new director is the latest in a series of executive changes at Fairpoint, New York-based company, which focuses on acquiring fast-growing digital businesses. It appointed Ross Miller as its new chief executive officer (CEO) in October of this year, its third leader in as many years.
BBIG stock has declined 53% in 2022 to trade at 83 cents per share, putting it deep in penny stock territory.
What Happened With BBIG Stock
Vinco Ventures announced that it has named Richard Levychin to its Board of Directors as an independent director and as chair of the board’s Audit Committee. Levychin will oversee corporate governance, particularly as it relates to financial reporting and disclosure. Mr. Levychin is a partner in New York-based Galleros Robinson’s commercial audit practice, focusing on both public and private organizations.
“We are happy to report that Mr. Levychin’s appointment satisfies the independent director and audit committee requirements for continued listing on Nasdaq,” said Vinco Ventures CEO Miller in a news release.
Given BBIG stock is trading at 83 cents, the company is in danger of having its shares delisted from the Nasdaq exchange unless it can get them back above $1. Meeting this threshold is the company’s current focus, it said in its news release announcing Levychin’s appointment.
Why It Matters
Vinco Ventures is a notorious meme stock. The company’s share price has vaulted upward and crashed on multiple occasions. In September 2021, BBIG stock rose to $12.49 from $2.50 in only a few days when a short squeeze was executed on it. The most recent run in the stock occurred this past February, when the share price reached $3.53 per share. Since then, the stock has steadily eroded.
That Vinco Ventures has appointed an independent board director who is in charge of overseeing corporate governance and financial reporting is encouraging. Hopefully it will help BBIG stock rise back above $1 per share and allow Vinco Ventures to remain compliant with the rules set by the Nasdaq exchange.
What’s Next for BBIG Stock
While BBIG stock moves higher today on news of the board appointment, investors should keep in mind that Vinco Ventures is a meme stock. Its shares are trading at a very low level, and it could soon be delisted from the Nasdaq. These factors make BBIG stock a volatile and potentially dangerous investment. Proceed carefully with this security.
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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.