Vinco Ventures (NASDAQ:BBIG) shareholders lost ground to the market on Wednesday, with the stock dropping 13% by 1 p.m. EDT. The tech-focused acquisitions specialist announced a management change; it also announced it was changing its name to Zash, reflecting the two companies' recent merger.
The company has appointed a new CEO and CFO, with Lisa King now stepping into the top management position. King has 25 years of experience as a senior marketing and branding officer, according to a filing with the SEC. She replaces Christopher Ferguson, who had led Vinco Ventures since 2017 and is described by the company as a critical part of the management team. Ferguson will remain as a senior strategic advisor.
The company also announced that it is shifting the date of its spinoff of Cryptyde, one of its subsidiaries. The outgoing CFO is leaving to join that company.
Executives said the management transition is going smoothly, although changes at this level can produce volatility in a company's strategic approach and operating results. The stock's soaring share price so far in 2021 also likely contributed to today's decline.
The company owns several promising, if tiny, subsidiaries that compete in areas like the online video-sharing space. These assets shouldn't be any less valuable after the management transition.
Still, investors can expect more swings ahead for the small-cap stock as the new leadership team sets its priorities around key areas like debt, growth, profitability, and shareholder returns.
CORRECTION: The original version of this report incorrectly characterized the change of management as a surprise. The company had named King as the incoming CEO in an SEC filing, pending acceptance of the new board of directors at the annual meeting on Oct. 14.