Why Is Vinco Ventures (NASDAQ:BBIG) Stock Up 270% In July?

If a stock continues on a remarkable rally for a month then it may be time for investors to sit up and take notice. In the past month there have been many stocks that have delivered significant gains and one that is still a standout is Vinco Ventures (NASDAQ:BBIG). The action in the stock continued yesterday as it jumped by another 21% and thereby took its gains over the course of the past week to 85%.

Moreover, the stock managed to clock gains of as much as 270% over the past month. The company is involved in the development of digital media and content technologies. ZVV Media Partners LLC, the company’s consolidated subsidiary and joint venture with Zash Global and Entertainment Corporation, holds an 80% interest in Lomotif Private Limited. Additionally, the company also owns a 1005 stake in the firm AdRizer LLC.

In the context of the current rally in the stock, it is perhaps important to keep in mind that earlier on in July Vinco Ventures had been served with a delinquency letter by NASDAQ. In the letter, it was noted that the company had been issued a warning with regard to the fact that it was non-compliant with the exchange’s compensation committee, audit, and independent director requirements. That had happened due to the resignations of Brian Hart, Richard Levychin, and Lisa King from the company’s board of directors. As per the rules of NASDAQ, a company must have a certain number of independent directors for some of the committees.

The resignations of the three directors had taken place in the period between June 27 and June 29. The company stated that the resignations had not been a result of any disagreement with the company, its management, board, or any committee of the board. The company went on to add that there had not been any disagreements about any of the practices, operations, or policies of Vinco Ventures either that led to the resignations.

While a letter of delinquency can often be seen as a source of consternation among investors, it ought to be noted that Vinco Ventures has had such letters served to it in the past. In November 2022, it received one for having failed to file its 10-Q for the quarter that had ended on September 30, 2022, at the right time. In January 2023, the company had been sent a notice by NASDAQ since it had failed to host an annual meeting of shareholders within 12 months since the fiscal year that ended on December 31, 2021.

It received another notice in April 2023 for failure to file its 10-Q on time for the period that ended on December 31, 2022. The company’s filing page with the United States Securities and Exchange Commission now displays that the company had made all those filings later on. The company seeks to grow through making acquisitions and investors seem to be excited about its TikTok competitor product Lomotif.