(InvestorPlace) Shares of Vinco Ventures fell more than 21% on Thursday amid shareholder distribution following the spin-off of its Cryptyde business.
Vinco shareholders are set to receive shares of Cryptyde on a 10:1 basis relative to their holding of BBIG. Cryptyde is expected to trade under ticker TYDE from the current TYDEV.
The decline in BBIG happens despite the anticipated distribution, with the stock historically regarded as choppy and volatile. The stock has fallen by 25% year-to-date, despite rising about 100% at some point.
The behavior of BBIG after shareholder distribution is not entirely new in stock markets. When shares go ex-dividend, their valuation subsequently corrects to reflect that the new investors do not receive a payout.
Investors could also be less excited. Cryptyde business, which encompasses areas of blockchain, cryptocurrency, and Web 3.0, comes at a time the sector is under bearish pressure.
BBIG: NASDAQ is down -21.82% in premarket, TYDE: NASDAQ is up +19.05%.
