Shares of Vinco Ventures skyrocketed over 300% on Thursday after the company announced a deal to merge with digital media firm Zash.
Vinco Ventures, previously generally known as Xspand Merchandise Lab, is a mergers and acquisitions firm that focuses on the digital media and e-commerce house.
It’s now set to merge with Zash, a media, leisure, and content-focused expertise firm led by co-founders Ted Farnsworth, Jaeson Ma, and Vincent Butta. Zash goals to construct a “digital Hollywood” with its proprietary platform the place it will possibly assist influencers and content material creators develop their manufacturers.
“The Firm’s proprietary Influencer Platform led to over 2 billion video views inside a 30-day interval. With a present follower community of over 350+ million, we’re poised to revolutionize the following technology of video distribution,” mentioned Brian McFadden, Chief Technique Officer of Zash.
Zash makes use of its analytics and distribution expertise to make sure as many eyes as doable are on its companions’ content material.
“We make the most of information, metadata, and the IoT [Internet of Things] to fulfill the ever-changing engagement and content material calls for of content material builders, customers, and creators,” mentioned Vince Butta, ZASH co-founder. “The distinctive monetization mannequin for our world ecosystem of platforms actually differentiates ZASH.”
For Vinco Ventures, the ZASH deal represents a brand new alternative to get out of the opening financially. Based on the company’s most recent SEC filings, Vinco misplaced $0.30 per share within the third quarter of 2020 on revenues of simply $4.2 million. The corporate can also be extremely leveraged, holding over $8 million in debt on their books.
“The merger with ZASH and the ensuing mixed entity offers present and potential enterprise companions with the reassurance of our potential to scale our manufacturing and inventive companies to fulfill their rising content material creation and distribution wants,” mentioned Vinco Chief Technique Officer Brian McFadden.
Buying and selling quantity for Vinco Ventures exploded after the deal to a document 59.9 million shares, in contrast with a mean quantity over the previous 30 days of simply 214,000 shares.
Vinco trades at round $6.40 per share, giving the corporate a market cap of some $92 million.