Rod Vanderbilt, Executive Chairman of the Board of Directors (the
“Board”) of Vinco Ventures, Inc. (Nasdaq Capital Market: BBIG)
(“Vinco” or the “Company”), a technology company specializing in
converting content to digital and social platforms, today issued a
letter to shareholders outlining the Company’s strategy and
providing business execution updates in advance of the 2023 Annual
Meeting of Stockholders (the “Annual Meeting”). The full text of
the letter is below.
Dear Fellow Shareholders,
Despite the challenges that Vinco has
experienced over the past year, our team has been diligently
developing and executing on a clear strategy to build a solid
foundation for growth and shareholder value creation. With our
Annual Meeting coming up on April 27, 2023, I wanted to provide
some important updates and background on the business and our
strategy. I also want to explain why it is critical that you vote
FOR all the Company’s proposals at the Annual
Meeting to allow us to pursue the strategy we have laid out to
drive growth and enhance the value of your investment. We have a
high-quality leadership team and Board in place and are excited to
execute on our business strategy.
Importantly, we have made substantial progress
in removing legacy roadblocks in terms of financial reporting. I am
happy to report that we have filed our Quarterly Report on Form
10-Q for the quarter ending September 30, 2022 with the Securities
and Exchange Commission (“SEC”) on April 10, 2023, reflecting the
culmination of months of hard work by our financial team and
auditors. The Company is also working expeditiously to complete its
2022 Audit and file its Annual Report on Form 10-K for the year
ended December 31, 2022, as soon as possible but not later than
June 2, 2023. I am also happy to report that on April 14, 2023, we
received a letter from the Nasdaq stating that The Nasdaq Hearings
Panel granted our request to continue our listing on The Nasdaq
Stock Market.
I am also pleased to share that we plan to
announce the appointment of a permanent Chief Executive Officer and
Chief Financial Officer soon. Please stay tuned for further
updates.
My goal in this letter is to be as transparent
as possible with you, especially because the challenges associated
with SEC and NASDAQ compliance have made it difficult or impossible
to communicate as much as we would have liked to the market. Going
forward, we will be communicating more regularly, and we are
looking forward to continuing to detail our plans for the Company’s
future growth.
Multi-Pillar
M&A Strategy to
Drive
Growth and Enhance
Shareholder Value
M&A has been at the core of our DNA from the
beginning. Vinco is pursuing an accretive M&A strategy and will
be looking at acquiring companies and assets that not only
complement but also enhance our existing businesses, such as adding
new distribution channels, content genres or audience
demographics.
Importantly, the transactions we have already
announced – as well as those we are actively pursuing – our
strategy is acquiring companies that are EBITDA positive. By
acquiring companies such as these that fit strategically into our
model, we can realize synergies and cross-sell opportunities that
can boost revenue and profitability. We will be evaluating
intellectual property portfolios, such as copyrights, patents, and
trademarks, to increase our content library and expand our
licensing opportunities. We look forward to announcing synergistic
transactions in the near term to drive our M&A growth
strategy.
We have already taken the first step, announcing
in February our joint venture agreement with ICON Publishing, LLC,
resulting in a newly formed subsidiary of the Company, VVIP
Ventures, LLC (“VVIP”). We also announced that VVIP had entered
into an Asset Purchase Agreement with magazine publisher,
a360media, LLC, to acquire the National Enquirer, National
Examiner, Globe, and National Enquirer UK print and digital
publishing assets.
In addition to the Asset Purchase Agreement,
VVIP also announced a multi-year syndication agreement with a360
Media, which provides VVIP access to additional content from
a360media’s category-leading celebrity brands, including InTouch,
Life & Style, and Star. We expect to close the Asset Purchase
Agreement with a360 Media, LLC within the next 30 days.
Our mission is to achieve global scale and
diversified revenues. Vinco is actively exploring multiple branding
and licensing opportunities, including discussions with IP
licensing companies for potential partnerships in new revenue
generating verticals such as apparel, books, and merchandise, among
others. This would allow us to further leverage the National
Enquirer’s brand recognition and reclaim its reputation as
“America’s most talked about magazine” to expand into new markets
and generate revenues.
The team is fiercely committed to continue
driving subscriptions for all print and digital publications. The
publishing assets deliver a well-established and prominent
subscription base, and we will prioritize growth of recurring
revenue through new and innovative digital and premium
subscriptions, offering exclusive access to archival content, new
exclusive content, and first looks at in-house productions for
higher subscription tiers.
Strategic Business Integration
Plan
Our content strategy is geared towards creating
unique and exclusive content that will enhance the consumer
experience within our centralized content ecosystem. As a
technology company that converts content into digital and social
assets, our primary focus is generating and distributing original
premium content. As Bill Gates once said, “Content is king,” and
that still holds true today. We believe content is the most
valuable asset in the media and marketing industries, and our goal
is to help our brands – and other brands – that use our digital
platforms to grow and attract new consumers while retaining their
existing loyal base.
To achieve this, we will deliver high-quality
and original copyright-owned exclusive content for our publications
and brands that will inform, educate, and entertain our readers
while also generating headlines around the world. In doing this, we
are striving to build a trusted state-of-the-art media ecosystem
that can serve every kind of consumer whether it is someone
interested in celebrities, news, sports, lifestyle, crime, cooking,
wellness, fashion, finance, or politics. This “one-stop shop”
strategy allows us to curate a unique and exclusive variety of
content that will enhance the consumer experience across all of our
platforms.
Over the past several months, our management and
technology teams have been laser-focused on strategizing to take
these legacy publications that are already highly profitable and
creating successful companion digital assets from them. Owning and
operating our own brands for content creation and cross-platform
monetization has been the critical piece of Vinco’s puzzle since
the company’s inception. We are now taking the first step in
building our portfolio of content brands through the a360media
properties.
In addition, we will also be considering talent
acquisitions to grow the Vinco team. Our goal is to strengthen our
workforce and leverage new talent expertise to help with
integration, marketing, and development. We are in the process of
developing a detailed integration plan that outlines business
operations and strategy. By managing the integration process
carefully, we can reduce the risks of disruption, leverage the
synergies between entities, and optimize performance.
Monetizing Our Print
and Digital Archive and Library
The National Enquirer vault comprises 96 years
of print and digital archives, which include exclusive photos,
videos, and stories that capture Hollywood’s extremely rich
history. The newsstands have historically given these brands great
exposure, and now the integration into the Vinco ecosystem with
Lomotif, AdRizer, MindTank, and Magnifi U will amplify this
reach.
Our specific plans for monetizing these assets
include the following:
- AdRizer and MindTank will leverage
articles, photos, and graphics from the publications to further
monetize the content through our programmatic ad platform. This
offers a substantial opportunity to further enhance the Company’s
existing content and advertising capabilities and revenue.
- Vinco will revive the Enquirer’s
famous 96-year-old library of celebrity content by transforming it
into new, exciting, and highly sought after multimedia formats
including TV shows, documentaries and true crime series, podcasts,
online and streaming productions, special issues, and more.
- This historic original content will
be revitalized to engage audiences across different platforms,
breathing new life into the rich archive through social, digital,
print, and TV.
- We are thrilled to say the Company
is in the process of developing a “Dynasty” series that explores
the uniquely complicated and obsessive worlds of America’s most
notorious families, featuring unseen materials from the National
Enquirer vaults and brand-new revelations.
- The working series has currently
shortlisted the Kennedy dynasty, the Jackson dynasty, the Presley
dynasty, as well as others, which will all be distributed across
Vinco’s platforms and, of course, will be broadcast-ready for TV
and digital streaming platforms.
- Our goal is to engage consumers and
empower creators. Our multichannel ecosystem allows us to generate
more interactive content with brand affiliates and influencers,
allowing them to monetize off our platforms.
- We believe that the new
publications align with the Company’s vision to create a
multidimensional ecosystem that fuels the creator economy and
allows creators to generate revenue by leveraging out assets and
platforms.
2023 Guidance
The estimated annualized revenues from the a360
acquisition, when combined with existing assets of the Company,
will be provided for 2023 after we file the 2022 annual report. We
intend to keep you updated on potential changes to our guidance as
we continue to pursue our strategy of acquiring EBITDA-positive
companies. Discussions are ongoing with multiple potential
counterparties and we anticipate announcing additional definitive
acquisition agreements in the coming months. Executing against our
multi-pillar M&A growth strategy will likely affect our
estimated annualized revenue and operating income guidance.
Support the Company’s Proposals at the
Annual Meeting
Your approval of the proposals up for
consideration at the Annual Meeting is critical to enable Vinco to
successfully execute on our growth and value creation strategy.
Approving the a360 acquisition – including the purchase of the
National Enquirer – is an essential first step. Further, approving
the increase in authorized shares and reverse stock split will give
the Company necessary financial flexibility to operate successfully
and also address potential NASDAQ-delisting concerns.
We also strongly recommend shareholders vote FOR
the reelection of our five Board members, who collectively possess
the right industry experience and skillsets to oversee the
successful execution of the Company’s strategy to unlock value for
shareholders.
Sincerely,Rod VanderbiltExecutive Chairman
Vinco Urges Shareholders to
Vote FOR All 12 Proposals at the Annual
Meeting.
If shareholders
have any questions, please contact
Vinco’s proxy solicitors, Kingsdale
Advisors US, at
1-855-682-2023
About Vinco Ventures
Vinco Ventures (Nasdaq: BBIG) is focused on the
development of digital media and content technologies. Vinco
Ventures’ consolidated subsidiary, ZVV Media Partners, LLC, a joint
venture of Vinco Ventures and ZASH Global Media and Entertainment
Corporation, has an 80% ownership interest in Lomotif Private
Limited. Vinco Ventures owns a 100% ownership interest in AdRizer,
LLC. For more information, please visit
https://investors.vincoventures.com.
Forward-Looking Statements and
DisclaimersThis press release contains “forward-looking
statements” as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995, which are based
upon beliefs of, and information currently available to, Vinco
Ventures’ management as well as estimates and assumptions made by
Vinco Ventures’ management. These statements can be identified by
the fact that they do not relate strictly to historic or current
facts. When used in this presentation the words “estimate,”
“expect,” “intend,” “believe,” “plan,” “anticipate,” “projected,”
and other words or the negative of these terms and similar
expressions as they relate to the applicable company or its
management identify forward-looking statements. Such statements
reflect the current view of Vinco Ventures with respect to future
events and are subject to risks, uncertainties, assumptions and
other factors relating to Vinco Ventures and its subsidiaries and
consolidated variable interest entities including Lomotif, their
industry, financial condition, operations and results of
operations. Such factors include, but are not limited to, the
expected risks and benefits from the proposed increase in Vinco
Ventures’ authorized shares as described in our proxy statement,
Vinco Ventures’ investments in ZVV Media Partners, LLC, Lomotif
Private Limited, PZAJ Holdings, LLC and related growth initiatives
and strategies such as the blended media, cross-platform
distribution strategy, the expected benefits of Lomotif’s
participation in and sponsorship of live entertainment events, the
expected benefits from acquisition of AdRizer and planned
integration of the AdRizer technology with Lomotif and Honey Badger
and synergies between AdRizer, Lomotif and Honey Badger, the
regulatory risks with the NFT and blockchain business lines and
such other risks and uncertainties described more fully in
documents filed by Vinco Ventures and Cryptyde with or furnished to
the Securities and Exchange Commission, including the risk factors
discussed in Vinco Ventures’ Annual Report on Form 10-K for the
period ended December 31, 2021 filed on April 15, 2022 which is
available at www.sec.gov. Should one or more of these risks or
uncertainties materialize, or the underlying assumptions prove
incorrect, actual results may differ significantly from those
anticipated, believed, estimated, expected, intended, or planned.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, performance, or achievements. Except as required by
applicable law, including the securities laws of the United States,
we do not intend to update any of the forward-looking statements to
conform these statements to actual results.
For further information, please
contact:
Investor
Contactinvestor@vincoventures.com
Media ContactLongacre Square
PartnersJoe Germani / Charlotte Kiaie vinco@longacresquare.com
Vinco Ventures (NASDAQ:BBIG)
Historical Stock Chart
From Nov 2024 to Dec 2024
Vinco Ventures (NASDAQ:BBIG)
Historical Stock Chart
From Dec 2023 to Dec 2024