Vinco Ventures Inc. (NASDAQ: BBIG) never fails to impress its investors with updates every now and then. However, today it seems that the company’s stock has failed to meet its investors’ hopes. The stock has landed in the Regulation SHO’s Threshold Securities List for more than 20 trading days now. The ‘fails to deliver’ streak started from January 18, 2022 and has been continuing since then. The news was confirmed by several Reddit community posts, the same community that supported BBIG all throughout. Moreover, SEC data for the second half of January, 2022, supports that.
One Reddit user mentioned in their post that “BBIG has been on the Threshold Securities list for the PAST 19 TRADING DAYS since Jan. 21st and counting. Yet rule 203(b) isn’t being enforced. By rule after the 13th trading day the requirement to close-out such position under Rule 203(b)(3) remains in effect.
The Rule and SEC’s action
Moreover, according to market regulations by the United States Securities and Exchange Commission (SEC), Rule 203(b)(3) of Regulation SHO requires that participants of a registered clearing agency must immediately purchase shares to close out fails to deliver in “threshold securities” if the fails to deliver persist for 13 consecutive settlement days. Threshold securities, as defined by Rule 203(c)(6), are generally equity securities with large and persistent fails to deliver.
However, in contrast to the aforementioned rule, SEC has yet not taken any action against it. The recent SEC filings by the company show filings pertaining to acquisition of AdRizer. Moreover, the stock’s history of ‘fails to deliver’ makes it even more important for the SEC to take action. Some Reddit users also mentioned that in the past, the BBIG stock, landed up in the threshold securities list consecutively for 32 days. This was far above the 13-day time period allowed by SEC regulations.
Further, the BBIG stock failed to deliver shares worth over $157 million in the second half of January, 2022. The figure’s calculation is based on the number of shares failed on a particular day and considering the closing price of that day (since the price tends to oscillate between the market hours). The amount is huge considering the information is collected for a limited span of two weeks. The data for February is yet not out, therefore, the FTD amount can’t be ascertained.
The BBIG stock had considerably gaining value in the early days of the second half of January. However, frequent fails to deliver led the stock down. When the fails to deliver streak started, the BBIG stock closed at $5.19 on January 18, 2022. After that, the stock has been experiencing a declining trend. However, it did recover a few times, but ultimately dipped.
On February 18, 2022, the BBIG stock closed at $3.18, down by 2.45% (losing 0.08 points) from its previous close. Comparing to the closing price a month ago, the stock has declined by a huge 38.7%, which might have been an effect of regular fails to deliver of the stock.
After the recent acquisition of AdRizer, the BBIG stock had gained by 3.12% and was priced at $3.64 (up by 0.11 points) at 7:34 a.m. ET in pre-market trading session on February 16, 2022. The market capitalization of the stock stood at $479.6 million. A day before, the stock gained by a massive 13.50% and closed at $3.53 (up by 0.42 points). The share volume traded for the BBIG stock that day was 33,150,946, closer to the average share volume of 34,878,109.