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

2023-03-24 12:55:42 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

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.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that?InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

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 .

More From InvestorPlace

• Buy This $5 Stock BEFORE This Apple Project Goes Live
• The Best $1 Investment You Can Make Today
• It doesn’t matter if you have $500 or $5 million. Do this now.
• Massive Bear Market “Divergence Event” Ahead… And The #1 Way to Play It

The post BBIG Stock: Vinco Plans to Counter Delisting With April 18 Meeting appeared first on InvestorPlace .