As Vinco Ventures (NASDAQ:BBIG) stock continues its race to the bottom, a small group of investors believes it may have found a solution to its problems. The media holding company has been progressively trending downward for months, failing to garner any lasting momentum even after announcing major acquisitions.
One month ago, speculation rose that BBIG stock could be in danger of delisting from the Nasdaq. However, some shareholders think the meme stock would benefit from adding retail investors to Vinco’s board of directors. On March 16, the investor group published a cover letter on its three nominations to the board.
Let’s take a closer look at what this could mean for the future of Vinco Ventures.
What’s Happening With BBIG Stock
BBIG stock is indeed rising today, though its growth likely has nothing to do with the board nomination needs. As of this writing, it is up 5% for the day without a clear catalyst. The company is approaching its shareholder meeting on April 18, where it will vote on a proposed reverse stock split. Additionally, the possibility of a ban on TikTok has helped BBIG stock rise in recent weeks. However, there’s no reason to assume that either one is helping push shares up today.
Given how poorly BBIG stock has performed throughout 2022, there’s little wonder why investors would want to see a change made on the board of directors. It’s also unsurprising that they would seek to add retail investors to the board, as BBIG has mostly risen on meme stock momentum. Now this group of investors has opted to nominate three of its own members, Lorne Ross, Shadwrick Vick and Christopher Muntz, to the company’s board. In Vick’s words:
“As a worldwide community of retail investors, we are deeply concerned about the recent Nasdaq deficiency notices received by Vinco Ventures and lack of transparency into our investment. It’s time to consider additional leadership that will prioritize transparency, accountability, and compliance. Real people have put their hard-earned dollars into this company and deserve a roadmap, filings and basic communication.”
Seeking Alpha reports that these nominees are expected to bring significant experience in corporate finance and digital media to the board. This news could push BBIG stock up if it inspires retail traders to buy shares. But as Vinco Ventures has issued no statement on the nominations, it’s hard to assess how likely they are to be granted.
On the date of publication, Samuel O’Brient 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.