The Clock Is Ticking for BBIG Stock as Erik Finman Pressures CEO
It has been over a week since former ZASH CEO Erik Finman issued a 7-day ultimatum for Vinco Ventures (NASDAQ:BBIG) CEO Ross Miller and President Gabe Hunterton to merge the remaining 40% of short-video platform Lomotif with the company. Finman stated that a failure to do so should result in the resignation and replacement of the two executives.
With the ultimatum deadline passed, Finman has now issued a letter to Vinco’s board requesting the removal of Miller and Hunterton from their roles. Finman plans to remove the executives himself if the board doesn’t take action in the next 72 hours. The letter is dated Dec. 6.
Finman notes that Miller and Hunterton are collectively receiving $115,000 per month as compensation for their court-appointed positions. He describes the compensation as a “personal piggy bank” the execs have received while not doing much for Vinco.
Clearly, this latest drama is putting BBIG stock in focus once again.
BBIG Stock: Finman Threatens to Remove Vinco Execs
In his letter, Finman says he has the “necessary 67% shareholder vote threshold” to remove Miller and Hunterton. He also says he has the power to appoint himself as CEO or co-CEO in order to make Vinco “one of the hottest companies of the decade.” Finman says he has already stepped down from ZASH so that there’s no problem in him becoming a Vinco executive.
Finman also addresses several company issues in his letter. These include the lack of recent quarterly earnings reports, Nasdaq deficiency notices due to shares being below $1 and the failure to merge Lomotif with Vinco. Finman also claims management has not upgraded Lomotif or engaged it in beneficial collaborations. In addition, no media tours have been enacted for the platform “during a vital time for such a product.”
Vinco sent a cease-and-desist letter to Finman on the same day he released his letter. The letter states that Finman must cease his “Tortious Conduct” before he does more damage to Vinco, its management team and the board. Law firm Kemp Jones, which assisted with the letter, alleges that Finman has violated laws related to market manipulation.
The letter also asks Finman to retract and correct his previous “false and misleading statements” by Dec. 9. Failure to do so could result in a defamation lawsuit, a reference to the U.S. Securities and Exchange Commission (SEC) and a request for monetary damages.
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On the date of publication, Eddie Pan 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 InvestorPlace.com Publishing Guidelines.
Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.
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