BBIG Stock Alert: Nasdaq Suspends Vinco Ventures


On July 14, Vinco Ventures (OTCMKTS:BBIG) received a delinquency notice from the Nasdaq. As InvestorPlace’s Eddie Pan reported, this grim warning came with very bad news. Specifically, Nasdaq warned that Vinco was in “noncompliance with Nasdaq’s independent director, audit, and compensation committee requirements” following three resignations from its Board of Directors.

To trade on the Nasdaq, companies are required to maintain a specific number of independent directors. Vinco Ventures clearly did not take action to rectify its noncompliance with this rule, as today brought news that Nasdaq had suspended BBIG stock.

As of now, Vinco shares can be traded over-the-counter (OTC), although this may not be the time to buy. Shares of BBIG stock have plunged more than 60% today and they don’t appear to be slowing down.

What Does This Mean for BBIG Stock

Typically, this type of news from an exchange doesn’t help stock prices. But as Pan also notes, the recent delinquency notice actually sent BBIG stock up. This recent surge had the markings of “Hail Mary” play charged with hype from retail investors.

That said, Vinco’s recent suspension has still cast a dark shadow over the stock’s future. BBIG has come crashing back down to earth today and is currently in a race to the bottom. Trading at less than $2 now, the stock doesn’t have much further to fall but could continue to plunge.

As of now, the future of Vinco Ventures is highly uncertain. Still, it’s clear that things don’t look good for BBIG stock. For one, the company’s history is also working against it; Vinco has received multiple warnings from Nasdaq in the past for similar failures to comply. Pan reports:

“Last November, the company received a notice for failing to file its quarterly 10-Q for the period ended Sept. 30 in a timely manner. In January, Vinco received another notice for failing to hold an annual meeting of shareholders within 12 months after the fiscal year end ended Dec. 31, 2021.”

That’s not even where the company’s problems stop. Back in April, Nasdaq issued another notice when Vinco failed to file its important 10-K form on time. Throughout the year, experts have wondered if BBIG stock could avoid being delisted. While the company has hung on for longer than many may have expected, Vinco is likely too unstable to regain and maintain Nasdaq compliance.

Trading on an OTC exchange is typically a last-resort move for companies that can’t make it on a major exchange like the Nasdaq or New York Stock Exchange. Once downgraded to OTC, stocks are often highly volatile and struggle to demonstrate sustainable growth. Anyone who doubts this should consider how unstable fellow meme stock Bed Bath & Beyond (OTCMKTS:BBBYQ) has been since being delisted. All signs now point to BBIG facing a similar fate.

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’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, Samuel O’Brient 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 Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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