Why Vinco Ventures Stock Is Trading Lower Today

Vinco Ventures Inc BBIG is trading lower Thursday after the company announced it will "spin out" its Emmersive Entertainment unit. 

The transaction is expected to take place during the third quarter. At that time, Emmersive Entertainment will become its own standalone publicly traded entity.

Vinco Ventures shareholders of record on the effective date will receive an equity position in the resulting company.

The resulting Emmersive Entertainment public company will be led by current Vinco Ventures chief strategy officer Brian McFadden.

"The technology that Emmersive continues to develop is I believe industry changing and we felt the best way to ensure the shareholders receive that value is by splitting the two entities and providing the shareholders the proverbial 'two bites of the apple.' We look forward to what Brian and the team can build and have full confidence in their ability to execute," said Christopher Ferguson, CEO of Vinco Ventures. 

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Price Action: Vinco Ventures has traded as high as $9.40 and as low as $1.11 over a 52-week period.

At last check Thursday, the stock was down 10.10% at $4.29.