by Vinco Ventures (NASDAQ:BBIG) has announced the result of its annual meeting of shareholders.
CEO James Robertson and COO Chris Polimeni presented the results followed by a Q/A at the end. A playback of the meeting is now available.
The Results
One of the notable and most controversial proposals includes the increase in authorized shares and reverse split, both of which were approved in addition to all 11 proposals.
Shareholders were quick to express their afterthoughts on Twitter about the results.
Reverse split
The company received a notice from NASDAQ for its $1 bid price requirement.
At its annual meeting of shareholders, COO Chris Polimeni stated they do not intend to file an extension for an additional 180 days.
“The split will take place relatively quickly, in order to meet the NASDAQ requirements as agreed upon with NASDAQ” – Polimeni, COO.
Vinco plans to conduct a reverse split between a ratio of 1:2, 1:10, or 1:20.
Acquisition of A360 Media Asset
The approval of the acquisition surrounding A360 media assets will give Vinco Ventures the IP (Intellectual property) to National Enquirer, National Enquirer UK, Globe, and National Examiner.
The National Enquirer deal comes at a steep price of $100M in a joint venture with VVIP (Vinco/Icon Publishing), founded by Ted Farnsworth.
Vinco will retain 51% of VVIP after the deal is closed.
“Around 95% of the Enquirer archives have not been published online. Vinco Ventures could take a legacy brand with this much archive material giving the company a huge amount of resources”
“Content is king and the most valuable commodity in the media and marketing industry; and for Vinco to have the opportunity to exploit and monetize all of these pieces of content that are original, copyrighted, that could be licensed to other film studios, TV production companies, it’s really a long term play owning and operating content”
James Robertson, CEO.
The Future of Lomotif
CEO James Robertson also commented on the operations of Lomotif.
“Migrating the servers to the United States and building the operations here.”
“By bringing Lomotif to the United States and by developing the software here in the same office, the same room, by building the content that is US based, we going to have a much larger US audience.
You build the audience, you build the growth, and then eventually this platform will be unstoppable,”
James Robertson, CEO.
The company plans to synergize the entire ecosystem which includes Lomotif, AdRizer, MindTank, and National Enquirer assets.
By in-sourcing the cost and leveraging content within each asset, Vinco will not pay third-party commission fees.
They strive to become a company where content and revenue come into this ecosystem, it doesn’t get out.
Through its historic archives, Vinco plans to produce exclusive documentaries, movies, and TV shows to stream via the Lomotif platform.
“It’s not just printed magazines”
“The archives include photographs, police reports, interviews, source materials, unseen video clips, and unheard audio clips. There are PDFs dating back decades, digitalized and keyworded for quick search results”
James Robertson, CEO.
New Valuation
A new valuation is in the works and will be completed within the next 30 days as stated by Polimeni.
“We are working on a valuation of the acquired assets with an outside firm, we will have that completed shortly within the next 30 days.”
– Chris Polimeni, COO.
