This part is important to understand:
BBIG already owns 40% of Lomotif through a joint venture subsidiary corporation (ZVV). BBIG and Zash are already operating Lomotif through the JV and acting like the merger is a done deal. For example, press releases are already being sent out on behalf of both entities.
The merger itself is not that important and will not add significant value right out of the gate because BBIG will undoubtedly be giving up equity to Zash based on respective ownership in the Lomotif business.
What is the purpose of the Annual Proxy?
The purpose of the Proxy Statement is to vote on all of the housekeeping items (primarily warrants) required before the merger and before the spin-off of Emmersive (TYDE).
The merger cannot happen until TYDE is spun off. The TYDE spin off cannot happen until the warrants are voted on by shareholders. This was already explained by the company.
Voting on the warrants is key because that will determine whether BBIG has up to $491M of extra cash going into the merger.
What is the current value of BBIG?
Assuming the the warrants are exercised, BBIG will have 247M outstanding shares and assets of 40% of Lomo (valued in the $2B range for 40%), $127M cash pre-warrants, $491M cash from the warrants, TYDE shares, and a few other less valuable business ventures.
Assuming the Gemini valuation is accurate the market cap should be in the ballpark of $10 per share. With the kicker being the unknown market cap of TYDE and potential short term user growth in Lomotif, which has significant upside.
The dilution with the warrants is negative, but BBIG will have an extra $491M cash runway as a trade off, so it won't have to worry about offerings.
Remember this: a large portion of its warrants have an exercise price at $9 per share, so the warrants only have intrinsic value if the share price is over $9.$Vinco Ventures, Inc.(BBIG)$