by Erik Finman, the former CEO of ZASH Global Media co-founded by Ted Farnsworth, made a startling announcement during a Twitter space call today, claiming that Vinco Ventures (NASDAQ: $BBIG) is on the verge of bankruptcy after postponing his remarks for four consecutive days.
Controversies have plagued Vinco Ventures in the past, including a hostile takeover attempt by John Colucci in 2022 and subsequent executive shakeups involving the hiring of previous A360 executives in 2023, followed by the resignation of three board members.
Shareholders Remain Resilient Amidst Controversy and Hardship
Adding to Vinco Ventures’ challenges, the highly anticipated acquisition of the prestigious National Enquirer has fallen through due to a change in the company’s best interests.
The agreement, initially announced on February 6, had brought together VVIP (Vinco Ventures/Icon Publishing), a company also founded by Ted Farnsworth, working with A360 Media in a joint endeavor to acquire the renowned tabloid publications National Enquirer, National Examiner, and Globe for roughly $100M.
However, despite these tumultuous times, the BBIG community remains resilient and united, standing firm amidst the controversies and hardships.
Bankruptcy Claims
Expressing his thoughts, Erik Finman, also the founder of Freedom Phone, remarked, “It wouldn’t surprise me if they are going declare bankruptcy soon. I think it’s the end of the road for uh, in my opinion, not financial advice, you know. I would question if it’s the end of the road for Vinco”.
Vinco Ventures has also found itself entangled in several lawsuits, with the notable case involving shareholders Shad Vick and Chris Muntz. Allegations against Vinco Ventures, its board of directors, and Ted Farnsworth include defrauding investors, money laundering, and negligent fiduciary duties.
Ted Farnsworth was recently charged by the SEC for making false statements to investors and falsifying books and records. In addition to being charged by the DOJ in a scheme to defraud investors through materially false and misleading representations relating to Helios and Matheson ($HMNY) and Moviepass.
Finman Eyes Lomotif in Bankruptcy Purchase
Continuing his statement, Finman expressed concern for Vinco Ventures, stating, “I fear that in the next week or month, things are not going to go so well.” Notably, Erik Finman expressed excitement about Lomotif, a TikTok competitor, referring to it as a “Golden child.”
He even appeared on Charles Payne’s Fox Business show, claiming there were “hundreds of millions of users” on Lomotif. Vinco Ventures acquired Lomotif for $125M in February of 2021 through its subsidiary ZVV (ZASH/Vinco Ventures).
ZASH held a 75% economic interest in ZVV after return of unreturned capital while Vinco Ventures retained a 25% economic interest.
Lomotif, combined with ZASH Global Media was once valued at a $5B valuation as stated by Ted Farnsworth in an interview with Benzinga.
Finman revealed his interest in acquiring Lomotif through bankruptcy court, stating, “I think that would be pretty cool, maybe relaunch it.”
Board Resignations and Political Spotlight
The timing of Finman’s claims coincides with the resignation of three board members: Richard Levychin, Lisa King, and Brian Hart. Furthermore, a recent article published by the Las Vegas Review Journal shed light on alleged corruption involving Clark County Republican Jesse Law, further intensifying the political spotlight on Vinco Ventures.
Mark Basile, a Securities attorney who has previously worked with Genius Group ($GNS) and $MMTLP, has shown a growing interest in assisting the BBIG community in these challenging times.
Taking to Twitter, Basile expressed his astonishment, stating, “What a ClusterF&$# $BBIG is. WOW.”
Shareholders Stand Strong and United
Shareholders remain unfazed and, in fact, grow stronger, rallying together to fight back. Many BBIG shareholders eagerly anticipate the court ruling regarding the appointment of a receiver in the ongoing lawsuit set for July 20th. Taking to Twitter, numerous shareholders express their emotions, with many displaying unwavering strength and determination.
