$EDNT $BBIG Edison Nation, Inc. -- Thu, November 12, 2020, 6:30 AM CST
Bethlehem, PA, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Chris Ferguson, Chief Executive Officer of Vinco Ventures, Inc. (NASDAQ: BBIG), today issued a letter to the Company's shareholders commenting on the Company's recent merger agreement, name change, strategic path forward, 2021 outlook and key PPE related developments. A copy of the letter also appears on the Company’s website and is disclosed in the Company’s Current Report on Form 8-K filed with the SEC on November 12, 2020.
Shareholder Update
Edison Nation, Inc. (the “Company”) is pleased to announce the closing of a Merger Agreement (the “Agreement”) with Vinco Ventures, Inc. and its wholly owned subsidiary, Honey Badger Media, LLC (collectively referred to as “Vinco”). Pursuant to the Agreement, Vinco merged with and into the Company with the resultant new Company name being Vinco.
In addition, the Company entered into transactions with Honey Badger Media, LLC whereby in return for the payment of the consideration as set forth below, the Company receives the following:
The registered traffic domains related to Honey Badger Media in exchange for the payment of three hundred thousand dollars ($300,00).
Exclusive and perpetual license agreement for the use of the Honey Badger Media portal and its process for branding and content development of media properties in exchange for 750,000 shares of restricted common stock of the company.
The Vinco Strategy: B.I.G.
In today’s marketplace for consumer product companies, the digital shelf dominates as the core channel for brand growth and sustainability. The reduction in physical shelf space and the global pandemic have exponentially increased the change in consumer behavior to favor purchasing online.
Many consumer product brands are struggling with this reality and have failed to focus on the importance of the digital shelf. Such brands are ripe for consolidation, and Vinco will seek to lead the effort to consolidate those brands.
Vinco is poised to leverage the new market opportunity by utilizing their B.I.G. Strategy: Buy. Innovate. Grow.
BUY: Vinco will seek to acquire one significant brand per quarter commencing with the acquisition of Honey Badger Media, the media technology platform acquisition announced today.
Acquisitions are our model. The specific attributes of the target companies will evolve with the market, but the core focus will remain digital media and consumer product companies.
The Vinco target brand acquisitions will be segmented into 3 Tiers:
Tier 1 brand acquisitions generate $20M+ in top line revenue.
Tier 2 brand acquisitions generate $10-19M in top line revenue.
Tier 3 brand acquisitions generate $0-9M in top line revenue.
INNOVATE: The core brands for Vinco will leverage the digital traffic platforms of Pop Nation and Honey Badger. By significantly improving both the traffic volume and the conversion metrics, the brands will more easily scale and innovate around the products that are most successful.
The Vinco brands receive a competitive advantage by having access to the digital traffic engine that has produced the following results:
2 Billion Video Views in October 2020
20 Million unique Sessions of unpaid traffic in one day to a directed page
150 Million Unique visitors to owned/controlled domains a month
1 Billion ad impressions per month
Over $50 Million in historical revenue generated from platform
$3 Million on video views from Facebook 2019
Generated traffic for brands ranging from travel, CBD, Credit Repair, skin cream, men’s health, wrinkle cream, diet, muscle building
