Vinco Ventures (OTCMKTS:BBIG) stock is plunging lower following a Business Insider report that stated the company has until today, Aug. 4, to regain compliance or to file a hearings panel review request with Nasdaq. Failure to comply with these actions will result in delisting. Shares of the company were suspended from the exchange on July 28.
Vinco has been plagued with issues over the past year, which has resulted in a shareholder GoFundMe effort to raise money in order to file a lawsuit against certain members of the company. At the time of this writing, the fundraiser has raised over $68,000 through 893 donations, with an ultimate goal of raising $69,000 plus an additional $350,000 for legal fees. An update dated July 27 notes that the proceeds of the donations have already been used to retain The Basile Law Firm. The law firm will work toward investigating if certain parties with ties to Vinco violated federal securities laws.
Per the GoFundMe page:
“The purpose of this amended GoFundMe campaign is to raise funds to pursue potential claims against parties that used VINCO (BBIG) for self enrichment to the detriment of retail shareholders and to seek monetary damages consistent with our prospective claims under various federal and state law. We expect this case to be a multi-party, complex federal lawsuit.”
BBIG Stock Plunges Lower in Light of Delisting Risk
Nasdaq has sent Vinco several notices of violation for late filings, such as for its second- and third-quarter earnings for 2022 as well as its 2022 10-K. On July 14, Vinco received another violation notice following the board resignations of Richard Levychin, Lisa King and Brian Hart. The departure of the three directors directly violated Nasdaq’s “independent director, audit, and compensation committee requirements.” Nasdaq provided Vinco with a deadline of July 21 to file any opposition to its hearings panel.
Let’s not forget Vinco’s so-called TikTok competitor, Lomotif. Vinco has failed to provide any details on Lomotif’s progress and a shareholder interviewed by Business Insider noted that the app has been unusable “for months.” That adds on top of the company’s failed acquisition of some of a360 Media’s assets, which included the U.S. and U.K. versions of the National Enquirer, the National Examiner and Globe.
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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 InvestorPlace.com Publishing Guidelines.
