Vinco Ventures Stock News and Forecast: BBIG stock sets new date for Cryptyde spin-off

Vinco Ventures is back again on the trail of the Cryptyde spin-off as it announced a new date of June 29. This was previously delayed, so the date being set has again led to shares in BBIG moving higher in anticipation.  

Vinco Ventures stock news

Previously, the record date for the bonus TYDE shares was set at May 18, but the spin-off was delayed. Since then holders of record on May 18 have been required to hold their shares until this new distribution date to be eligible for the bonus. That has seen two classes of BBIG stock trading, those with rights and those without rights to the bonus TYDE shares. 

On June 29, BBIG will do a special dividend of 1 TYDE share for every 10 BBIG shares held. 

We have covered this one before and in less than flattering terms. It is not one for investing in our view, but short-term trading opportunities may present themselves. Mostly this will be momentum trading, which means knowing when to get out as momentum peaks. Overall, we remain negative on the stock and outline a few things we took from recent company filings just to back our bearish case. There is debt repayments and restructurings due, and now is not a good environment for that and also the possibility of share dilution if the company managed to get it across the line. Again the environment has made it harder for companies to raise debt and equity.

From filings:

•  "As of December 31, 2021, Lomotif had not generated any significant revenues and is likely to continue to experience significant net losses for the foreseeable future."
• "A substantial number of shares of our common stock may be issued upon conversion of our outstanding convertible notes or exercise of our outstanding warrants, and such issuances and any other equity financing we may conduct may significantly dilute our stockholders."
•  "$33,000,000 will be due in July 2022, and the remaining $80,000,000 will be due in July 2023."
• "The warrants we issued in November and December 2021 contain certain provisions, which provide that we shall seek to obtain a stockholder approval to increase our authorized shares of common stock to at least 400,000,000."

Vinco Ventures stock forecast

Each spike gets weaker and weaker. There may be some short lived optimism and buying around the spin-off date, but it will not last.

BBIG stock chart, weekly

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