Vinco Ventures, Inc.'s (NASDAQ:BBIG) board of directors announced the delay of the distribution date for the previously announced spin-off of Cryptyde, Inc. due to contractual and regulatory conditions.
Vinco issued the press release after market close, with the stock reacting by trading down more than 10%. Vinco had already closed the day down 3.09% at $2.82 a share.
Earlier in the month, Vinco had stated each of its stockholders of record as of the close of business on May 18, 2022, would receive one share of Cryptyde common stock for every 10 shares of Vinco common stock held, and that such share dividend was expected to be distributed on or about May 27, 2022.
Vinco now expects the distribution date for the Cryptyde spin-off to occur on or about the end of the second quarter of 2022, subject to certain contractual and regulatory conditions being met or waived.
Even with this change, only owners of Vinco common stock on the distribution date that were outstanding on the record date will be entitled to receive the Cryptyde dividend.
Cryptyde "is focused on leveraging blockchain technologies to disrupt consumer-facing industries," says the press release and after the split, its common stock is expected to trade on the Nasdaq under the stock ticker symbol “TYDE.” Vinco, a digital media and content technologies holding company, will continue to trade on the Nasdaq under the stock ticker symbol “BBIG.”
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