Hudson Bay Acquired 20 Million Shares of Vinco Ventures (BBIG) Stock

  • Hudson Bay just disclosed ownership of 21.99 million shares of Vinco Ventures (BBIG).
  • The fund reported a 2.44 million share stake as of the third quarter, meaning it acquired 19.54 million shares during Q4.
  • BBIG stock is down about 10% today.
Vinco ventures (BBIG) logo on an orange/red background

Vinco Ventures (NASDAQ:BBIG) stock is down by about 10% today following yesterday’s announcement that VVIP Ventures, a joint venture operated by Vinco, would acquire the U.S. and U.K. editions of the National Enquirer, the National Examiner and Globe from a360 Media. The transaction will be an all-cash deal, while other financial aspects of the acquisition were not immediately disclosed. In addition, VVIP will also be provided a 90-day period to discuss other potential business ventures with a360.

Vinco notes that the acquisitions will be its first step in becoming a global celebrity content provider. After the close of the acquisitions, VVIP will enter into a “multi-year service agreement for publishing, financial and distribution services with a360 Media.”

Meanwhile, Hudson Bay just disclosed a major stake in BBIG stock. Let’s get into the details.

BBIG Stock: Hudson Bay Doubles Down

According to an amended Schedule 13G filing received by the U.S. Securities and Exchange Commission (SEC) yesterday, Hudson Bay Capital Management owns a total of 21.99 million shares as of Dec. 31. That’s equivalent to an 8.69% ownership stake. The firm previously filed a Schedule 13G on Feb. 2 showing ownership of 15.13 million shares as of Dec. 31, so it appears that it initially made an error.

Hudson Bay reported owning 2.44 million shares as of the third quarter as well. That means it substantially increased its stake during Q4. Furthermore, it appears that Hudson’s position will soon increase again.

Vinco released a Form 8-K on Feb. 5, providing details on an exchange agreement, a securities purchase agreement and more. The exchange agreement, made with an “accredited investor,” seeks to exchange $250,000 of convertible notes that were issued on July 22, 2021 for a total of 26 million shares of common stock. On the “initial closing date,” $105,000 worth of notes will be exchanged into 10.8 million shares of common stock. On the first day of trading after the company increases its authorized shares, $145,000 worth of notes will be exchanged into 15.2 million shares of common stock.

Vinco issued Hudson Bay $120 million worth of convertible notes in exchange for $100 million and five-year warrants on July 22, 2022. The notes carried a maturation date of July 22, 2022.

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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 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.

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