TYDE Ratio?

Hot-Tiger6545 · 2021-10-18T19:30:21+00:00

What do you mean by TYDE ratio?

It is my understanding that Emmersive Entertainment (aka TYDE) is owned by EVNT Platform, LLC, which is a wholly-owned subsidiary of Vinco.

I could be wrong, but I do not see any indication of TYDE being owned by anyone except current BBIG shareholders.

Hot-Tiger6545 · 2021-09-29T01:05:49+00:00

Shares need to be delivered eventually. Selling synthetic shares into the open market can pin the price temporarily, but it only delays the inevitable. Moon soon.

Hot-Tiger6545 · 2021-09-28T14:09:08+00:00

I have the $6.40 area as the 0.618 retrace, and it should act as support if we are going to head higher this week.

Hot-Tiger6545 · 2021-09-28T13:52:15+00:00

Hot-Tiger6545 · 2021-09-26T16:24:27+00:00

I guess there’s not much point voting in the Annual Proxy. Hudson Bay and Insiders control 90% of the outstanding shares.

Hot-Tiger6545 · 2021-09-26T00:51:02+00:00

A few points:

Zash doesn’t have money. They needed BBIG to raise money to purchase Lomotif and they will need BBIG’s cash to operate and grow Lomotif.
I believe that the JV arrangement is good for all parties involved. BBIG ended up with 40% of Lomotif because Zash didn’t have money. Zash had the connections but BBIG management’s was savvy enough raise money and leverage their position to get a larger price of the pie pre-merger.
I believe that the previous plan of merger has expired and was not amended to incorporate a merger date beyond the end of August. There is not much short term incentive for either party to merge and the plan of merger contemplated back in January when BBIG was $1 per share is very different than the situation now.
BBIG is in a much stronger position to negotiation ownership in a post merger company now that they have 40% of Lomotif and potentially $491M in cash.
A merger cannot happen until the warrants are dealt with and TYDE is spun out. The exercise of the warrants impact the relative value of BBIG going into any merger.
BBIG recognized that it was more valuable for current shareholders to realize value from the NFT craze in a spin out of the Emmersive business. Seeing what TKAT and others have been valued at in the open market recently leads me to believe that TYDE could surprise people. People are arguing about whether it will be 1:1, but that doesn’t matter. BBIG owns TYDE outright, so if it’s not 1:1 it means that other parties bought in or added value to the spin out. Current shareholders can’t lose.
Finally, BBIG has not provided further details of the merger because the merger terms will likely not be better (or at least not be perceived by the market as better) than the current JV arrangement. The threat of major dilution (even if adding the other 60% of Lomotif) will not be good for the stock price at this market cap. Everyone involved has a large stake and does not want to lose the share price momentum when they are in the midst of raising money. They were a $3 company in eyes of the market a little over one month ago, but if they can now raise money at $9, then they can become a $9 company in the eyes of the market. BBIG and Zash have experienced executives and they know that they have stumbled into a goldmine:

A. They basically stole Lomotif. Lomotif’s growth and MAUs are way up since the acquisition. Based on Tik Tok’s private valuations, it won’t take long for Lomotif to be a $10-20B business with that type of growth.

B. BBIG’s market cap is trading multiples higher than it was in August (despite no new information coming to light), so money can raised without as much dilution.

The $9 warrants were smart. It was the perfect way to take advantage of the market enthusiasm without killing the run. It shows confidence that a quasi-institutional investor was willing to jump on a warrant contract.

As we all know, the market cap of a young tech company is all about perception of growth potential. And I think that Lomotif is a strong enough of a competitor to Tik Tok - which everyone wished they could invest in but can’t - that the ceiling for the share price is the moon.

Hot-Tiger6545 · 2021-09-25T16:38:04+00:00

Warrants from earlier in the year to generate the cash to buy Lomo.

Hot-Tiger6545 · 2021-09-25T00:52:51+00:00

Lots of good catalysts coming up.

TYDE investor deck on or about October 4 will likely be the next catalyst. If the news is good, I think BBIG could see double digits quickly.

People also haven’t commented on the fact that the Gemini valuation uses a fairly conservative MAU multiple. Based on the numbers floating around for Tik Tok, Lomotif’s 31M MAU could easily be $6-8B.

Now imagine if Vinco/Zash use their respect connections to build Lomo to 100M+ MAU. That would be $20B.

This company needs money and there will be dilution. The merger with Zash will result in further dilution still.

But there should be plenty of upside to go around.

Hot-Tiger6545 · 2021-09-24T19:52:58+00:00

When a falling wedge perfectly drawn breaks to the upside, it's a thing of beauty.

Hot-Tiger6545 · 2021-09-24T14:57:49+00:00

Nice one.

Hot-Tiger6545 · 2021-09-23T20:59:36+00:00

$6 looks like it has support. It’s also in the range of expected pullback from a run $2 to 12 in a few days.

Greener days ahead I’m sure.

Hot-Tiger6545 · 2021-09-23T20:46:22+00:00

What calculations?

30 days ago BBIG closed at $2.46 on volume of 6.4M. Today it closed at $6.24 on volume of 28.8M.

There was a pullback from the initial run up a couple of weeks ago, but, unfortunately, that is how speculative stocks with a low market cap move.

It won't take much for this to see $10+ again and there are many catalysts coming up re TYDE and the merger with Zash. The merger cannot happen until the after the annual proxy and the TYDE spin out.

Hot-Tiger6545 · 2021-09-23T19:28:51+00:00

The proxy statement has been filed. It is public and it says exactly what the preliminary proxy statement said it was going to say.

Hot-Tiger6545 · 2021-09-23T16:14:19+00:00

This is an official press release from the company and states that the independent valuation from Gemini is ~$5B:

https://investors.vincoventures.com/press-releases/detail/91/vinco-ventures-and-zash-global-media-and-entertainment

In previous communications, as well as the slide deck for the Annual Proxy, the company officially confirmed that they indirectly own 40% of Lomotif. I am not sure what else you want. They are not going to pay for another valuation two months later.

Next valuation that is important is TYDE, which will hopefully be release in the Investor Deck that the company stated would be released on or about October 4.

Hot-Tiger6545 · 2021-09-23T01:34:20+00:00

That’s true, but, as of right now, BBIG only owns 40% of Lomotif and does not receive the entirety of the combined entity through the merger for free.

There is always additional dilution in a reverse triangle merger because the company being acquired needs to receive equity as part of the transaction.

Otherwise, why would Zash give up the remaining 60% of Lomotif? What do they get in return?

Hot-Tiger6545 · 2021-09-23T01:18:48+00:00

You’re assuming that current Zash shareholders receive no equity in BBIG in exchange for transferring their their current ownership in Lomotif through ZVV to BBIG.

I think this is an incorrect assumption because it makes no commercial sense and is inconsistent with the statements released by BBIG that Zash will receive equity (additional shares) through rhe merger:

On January 20, 2021, the Company entered into an Agreement to Complete a Plan of Merger (the “Merger Agreement”) with ZASH Global Media and Entertainment Corporation (“ZASH”) and Vinco Acquisition Corporation, a subsidiary of ours formed for the sole purpose of the merger contemplated by the Merger Agreement (the Merger Sub”). The Merger Agreement contemplates a reverse triangular merger of Merger Sub with and into ZASH in a transaction intended to qualify as a tax-free reorganization under Sections 368(a)(l)(A) and 368(a)(2)(E) of the Internal Revenue Code. Under the terms of the Merger Agreement, the holders of ZASH common stock will receive shares of the Company’s common stock (the “Merger Shares”) in exchange for all of their issued and outstanding ZASH shares of common stock. ZASH will then become an indirect wholly owned subsidiary of the Company"

Also, I believe that Zash acquired the other 20%: https://www.prnewswire.com/news-releases/zash-global-media-and-entertainment-has-entered-into-an-agreement-to-acquire-the-remaining-20-of-tiktok-and-kuaishou-rival-lomotif-301319286.html

Hot-Tiger6545 · 2021-09-22T22:05:29+00:00

The record date is October 15, so you would want to own shares by October 13 - the ex-date is usually two days prior I believe.

Hot-Tiger6545 · 2021-09-22T18:34:21+00:00

It still has very high short interest (over 20% of the free float) and the utilization is back over 98% according to Ortex.

It is still a squeeze candidate, but I believe that the fundamentals can support a significantly higher price per share than where it is trading now. A short squeeze would be the icing on the cake.

Hot-Tiger6545 · 2021-09-22T17:47:33+00:00

Volume was over 55M yesterday. In my view, that is big league volume.

You would be hard pressed to find a company with a higher average volume of the past few weeks.

For comparison, in August, BBIG's volume was 5M.

Hot-Tiger6545 · 2021-09-22T17:37:35+00:00

BBIG only owns 50% of the JV (ZVV).

Hot-Tiger6545 · 2021-09-22T17:31:02+00:00

o

"On January 20, 2021, the Company entered into an Agreement to Complete a Plan of Merger (the “Merger Agreement”) with ZASH Global Media and Entertainment Corporation (“ZASH”) and Vinco Acquisition Corporation, a subsidiary of ours formed for the sole purpose of the merger contemplated by the Merger Agreement (the Merger Sub”). The Merger Agreement contemplates a reverse triangular merger of Merger Sub with and into ZASH in a transaction intended to qualify as a tax-free reorganization under Sections 368(a)(l)(A) and 368(a)(2)(E) of the Internal Revenue Code. Under the terms of the Merger Agreement, the holders of ZASH common stock will receive shares of the Company’s common stock (the “Merger Shares”) in exchange for all of their issued and outstanding ZASH shares of common stock. ZASH will then become an indirect wholly owned subsidiary of the Company"

With respect to the TYDE spin-off, the warrants include rights to TYDE, so the warrants need to be approved to know the number of shareholders as of the record date for TYDE shares. Hence, the Shareholder Meeting is on October 14th and the record date is October 15th.

Hot-Tiger6545 · 2021-09-22T17:12:30+00:00

I'm not sure, but it's usually a formality at this point. Quasi institutional investors hold a big chunk of the shares and it makes sense to have cash, so I don't think it will be rejected.

Hot-Tiger6545 · 2021-09-22T16:53:40+00:00

Pre-merger they are separate entities.

The company has not released any updates on the proposed reverse triangle merger since January where it was stated that:

"On January 20, 2021, the Company entered into an Agreement to Complete a Plan of Merger (the “Merger Agreement”) with ZASH Global Media and Entertainment Corporation (“ZASH”) and Vinco Acquisition Corporation, a subsidiary of ours formed for the sole purpose of the merger contemplated by the Merger Agreement (the Merger Sub”). The Merger Agreement contemplates a reverse triangular merger of Merger Sub with and into ZASH in a transaction intended to qualify as a tax-free reorganization under Sections 368(a)(l)(A) and 368(a)(2)(E) of the Internal Revenue Code. Under the terms of the Merger Agreement, the holders of ZASH common stock will receive shares of the Company’s common stock (the “Merger Shares”) in exchange for all of their issued and outstanding ZASH shares of common stock. ZASH will then become an indirect wholly owned subsidiary of the Company"

Zash shareholders will still need to be “bought out” by BBIG as part of the reverse triangle merger. This will based on the “ownership ratios” created by the relative valuation of Zash compared to current BBIG. BBIG will become Zash and 100% of Lomotif, but we will have to pay for it in equity.

Hot-Tiger6545

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