Vinco Ventures (NASDAQ: BBIG) stock fell more than 15% during the after market hours after it delayed the distribution date of its Cryptyde (NASDAQ: TYDE) spin-off due to contractual and regulatory conditions. The Company currently 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.
On May 5, 2022, the Company announced that each Vinco stockholder of record as of the close of business on May 18, 2022 would receive one share of Cryptyde common stock for every ten shares of Vinco common stock held and that such share dividend was expected to be distributed on or about May 27, 2022.
For clarification regarding the record date and distribution date as it relates to the Cryptyde dividend, each Vinco stockholder of record on the record date will receive one share of Cryptyde common stock for every 10 shares of Vinco common stock held through the distribution date. However, if a stockholder sells shares of Vinco common stock after the record date they will not receive the Cryptyde dividend. Only holders of shares of Vinco common stock on the distribution date that were outstanding on the record date will be entitled to receive the Cryptyde dividend. Following the separation, Vinco stockholders will also receive cash in lieu of any fractional shares of Cryptyde common stock that those holders would have received after application of the 10:1 distribution ratio. No action is required by Vinco stockholders to receive the shares of Cryptyde common stock in the dividend distribution.