BBIG Stock: Vinco Plans to Counter Delisting With April 18 Meeting

  • Vinco Ventures (BBIG) will hold its annual meeting of stockholders on April 18.
  • Shareholders will be able to vote on a reverse stock split and an increase in authorized shares, among other proposals.
  • BBIG stock is down more than 25% year-to-date (YTD).
Vinco ventures (BBIG) logo on an orange/red background

On Jan. 4, the Nasdaq notified Vinco Ventures (NASDAQ:BBIG) of its noncompliance with continued listing rules due to the company not holding an annual meeting within 12 months of the end of its fiscal year. The exchange required Vinco to submit a plan to regain compliance by Feb. 20, which the company did.

True to its word, Vinco has submitted a Schedule 14A detailing information on its upcoming annual meeting of stockholders on April 18. At the meeting, the votes for 12 proposals will be revealed. Notably, some of the proposals up for vote would affect a reverse stock split for the company and an increase of authorized shares.

Let’s get into the details.

BBIG Stock: Vinco Ventures to Hold Annual Meeting on April 18

First up, proposal number one seeks to increase authorized common stock to 750 million from 249 million. That marks a significant increase of 201%. This proposal, if approved, doesn’t mean that the number of outstanding common shares will immediately jump to 750 million. Rather, it gives Vinco the authorization to issue up to 750 million shares. When Vinco decides to do this is up to the company. Similar to proposal number one, proposal two seeks to increase authorized preferred stock to 5 million from 1 million.

Next, proposal number three is likely the most controversial. It seeks approval of a reverse stock split in a ratio between 1-for-2 and 1-for-20. Furthermore, BBIG stock currently trades under $1, which is noncompliant with listing standards. Vinco received notification of the noncompliance on Dec. 1.

Proposals four and five involve the approval of the issuance of common stock upon the conversion of Series A and Series B preferred stock, respectively. Moving on, proposal six seeks acceptance for the issuance of common stock under Vinco’s “proposed PIPE financing transaction.”

Next, proposal seven seeks approval for the acquisition of the assets of A360 Media and a potential change in control. After that, the following two proposals involve the frequency of an advisory vote and executive compensation.

Finally, the last three proposals relate to gaining approval for the reelection of five directors, the ratification of Marcum, LLP as Vinco’s accounting firm and the adjournment or postponement of the meeting if necessary.

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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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