Vinco Ventures skyrockets over 300% after inking merger deal with Zash
Vinco Venturesstock skyrocketed over 300% on Thursday amid news of a mergerwith Zash.
- Zash is a digital media company focused on creating a "virtual Hollywood" for influencers and content creators.
- Trading volume for Vinco Ventures jumped to a record 59.9 million on Thursday.
Shares of Vinco Ventures skyrocketed over 300% on Thursday after the company announced a deal to merge with digital media company Zash.
Vinco Ventures, formerly known as Xspand Products Lab, is a mergers and acquisitions company that focuses on the digital media and e-commerce space.It is now set to merge with Zash, a media, entertainment, and content-focused technology company led by co-founders Ted Farnsworth, Jaeson Ma, and Vincent Butta. Zash aims to build a "virtual Hollywood" with its proprietary platform where it can help influencers and content creators expand their brands.
"The Company's proprietary Influencer Platform led to over 2 billion video views within a 30-day period. With a current follower network of over 350+ million, we are poised to revolutionize the next generation of video distribution," said Brian McFadden, Chief Strategy Officer of Zash.Zash uses its analytics and distribution technology to ensure as many eyes as possible are on its partners' content.
"We utilize data, metadata, and the IoT [Internet of Things] to meet the ever-changing engagement and content demands of content developers, consumers, and creators," said Vince Butta, ZASH co-founder. "The unique monetization model for our global ecosystem of platforms really differentiates ZASH."Read more: We spoke to Winklevoss-backed crypto platform Gemini about bitcoin, how to use stable coins, and why regulation won't kill the boom in digital currencies For Vinco Ventures, the ZASH deal represents a new opportunity to get out of the hole financially. According to the company's most recent SEC filings, Vinco lost $0.30 per share in the third quarter of 2020 on revenues of just $4.2 million. The company is also highly leveraged, holding over $8 million in debt on their books.
"The merger with ZASH and the resulting combined entity provides current and prospective business partners with the assurance of our ability to scale our production and creative services to meet their growing content creation and distribution needs," said Vinco Chief Strategy Officer Brian McFadden.
Trading volume for Vinco Ventures exploded after the deal to a record 59.9 million shares, compared with an average volume over the past 30 days of just 214,000 shares.Vinco trades at around $6.40 per share, giving the company a market cap of some $92 million.
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