Vinco Ventures, Inc. (BBIG) stock prices were up by 7.2179% some time after market trading commenced on July 12th, 2021, bringing the price per share up to USD$4.08 early on in the trading day.
Reverse Merger with Zash
The company announced in January of 2021 a reverse merger with a private media company called Zash Global Media, with the fate of BBIG’s stock seeming to depend on the closing of the merger. Following the move, Zash will become the controlling company, while retaining both Vinco’s name and the BBIG ticker. The company hopes to allow BBIG to cover its losses in order to facilitate the expansion of the business. The reverse merger is expected to be approved some time in July of 2021.
Acquisition of Lomotif
The combined company also has plans on acquiring Lomotif, a contender of the market space currently dominated by the TikTok platform. The merger is designed to utilize data, metadata, and the Internet of Things, to meet the perpetually evolving demands of content developers, consumers, and creators. February 2021 saw Farnsworth and Ma acquire a controlling stake in Lomotif, facilitating the participation of shareholders in BBIG’s growth.
Healthy Liquidity Position
The company reported USD$5.5 million in cash as of March 31st, 2021, indicating a comfortable liquid position, including USD$1.68 million in receivables. Nevertheless, the company is running steep cash flow losses, as indicated by a loss from operations in the amount of USD$4.14 million for the first quarter of 2021. May 24th, 2021 saw an accredited investor exercise warrants of the company’s stock, generating an additional USD$5.74 million.
Emmersive Entertainment Spin Out
June 24th saw the Vinco-Zash duo invest USD$2 million in Lomotif after receiving investment in the same amount. The same date also saw the company announce its spinning out of Emmersive Entertainment to its shareholder as a standalone public company. This sees the company enter the non-fungible token space, with the deal expected to close in the third quarter of fiscal 2021.
Future Outlook for BBIG
Armed with the recent string of collaborations, BBIG is poised to capitalize on the expansive opportunities afforded to it as it consolidates its existing market footprint while also expanding into other markets. Investors are hopeful that the company will continue to leverage the resources at its disposal to maintain its trajectory of success, thus ushering in sustained growth in the long term.
