Vinco Ventures Inc (NASDAQ:BBIG) is trading lower Wednesday following a management transition involving the company's CEO and CFO.
The company announced that Christopher Ferguson, former CEO of Vinco Ventures, agreed to a three-year deal to serve as a senior strategic advisor with Vinco Ventures' parent company ZASH Global Media. Lisa King was voted in as the new CEO of Vinco Ventures.
Brett Vroman, former CFO of Vinco Ventures, was appointed CFO of Cryptyde, a wholly-owned subsidiary of Vinco Ventures.
The management transition involving the top executives of Vinco Ventures "has been planned for months and months and months," ZASH Global Media co-founder and chairman Ted Farnsworth said Wednesday on Benzinga's YouTube show "Power Hour."
All of the company's management remains intact, Farnsworth said.
See the full interview here:
Ferguson is transitioning to ZASH Global Media "to help us to grow the business on that side" and King will be focused on internal operations and execution as the new CEO, Farnsworth said. Ferguson and King have been working together throughout the transition period, he added.
The confusion was a result of the filing of multiple 8-K forms on Tuesday night without a press release, Farnsworth said, and the stock fell more than 20% in the after-hours session. Vinco Ventures issued a press release clarifying the transition on Wednesday morning.
"That's what shorts love to do. Somebody reports the 8-K and they'll start running with their own stories until we get our press release out and start to clarify the story," Farnsworth said.
In hindsight, "that was our bad ... it really should have gone out with the press release," he said.
The company's intention with the transition was to position its management team in a way that would be most beneficial for the companies and the shareholders, Farnsworth explained.
"Our natural thing was to put him in the new subsidiary that we're spinning out to give it the best chance at success that it could have."
Farnsworth told Benzinga that "we all were a little shocked" by the stock's reaction to the 8-K filing.
Lesson learned: "You never put out an 8-K without a press release attached to it."
BBIG Price Action: Vinco Ventures has traded as high as $12.49 and as low as $1.11 over a 52-week period.
The stock was down 18% at $6.34 at the time of publication.