Is Vinco Ventures, Inc. (NASDAQ:BBIG) Stock For A Buy Ahead Of The Merger And Spinoff?
Vinco Ventures, Inc. (NASDAQ:BBIG),selective acquisitions company primarily focusing on digital media and content technologies is looking forward to its reverse merger with Zash Global Mediawhich is a digital content distribution company aiming at channelizing the needs of the digital content creators and online influencers to expand their brands globally.The merger once done, would give the control of the company to Zash Global Media. However, the name Vinco Ventures and the BBIG stock symbol shall be retained by the company.
Though the announcement of the merger came in January itself but the agreement is yet to be closed.It is anticipated that the agreement, once made, would help Vinco ventures majorly to cover its losses. In addition to this, it is apparent that the merger would help Vinco Ventures boost BBIG stock. However, there is not much concrete information rolled out by the company on the possibilities that this merger intends to serve.
After its merger with Zash, the combined company plans on acquiring Lomotif which is a possible rival to TikTok. According to Media Play News, the merger is designed to make a new “virtual Hollywood.” Lomotif has been gaining immense popularity in the Asian, European and South American countries, with over 350 million videos per month.What’s interesting to know is that in February, Farnsworth and Ma took a controlling stake in Lomotif opening roads for the shareholders in BBIG to participate in its growth ahead of the reverse merger. Thus, once the reverse merger closes, Vinco would become the public parent company of Lomotif.
Looking at the stock of Vinco Ventures, the first-quarter earnings report that was released on 25th May, showed the company running into steep cash losses. However, there was an investment of $2 million into Lomotif through the joint venture of Vinco and Zash making it apparent that the amount was purposefully taken out ahead of the merger. Further on June 24th, the company stated its plans of spinning out Emmersive Entertainment to its shareholders as a standalone public company. Though the record date is not yet decided, the deal is expected to be closed in the third quarter of this year.Thus, a brighter sun shines on BBIG stock as soon as the merger and spin off materializes.
