Splash Beverage Group Strengthens Financial Position Through Debt-to-Equity Exchange

Splash Beverage Group, Inc. (NYSE American: SBEV), a notable entity in the beverage industry, has successfully exchanged approximately $12.67 million of its outstanding promissory notes for newly issued preferred equity. This strategic financial maneuver is aimed at ensuring the company's compliance with the shareholder equity requirements set forth by the NYSE American. The exchange of debt for equity is a critical component of Splash Beverage Group's comprehensive strategy to fortify its capital structure, diminish interest expenses, and bolster its shareholder equity position.

The transaction underscores the company's commitment to adhering to the NYSE American's listing standards and reflects the confidence of its investors in the company's long-term growth trajectory. Bill Devereux, CFO of Splash Beverage Group, expressed gratitude towards the investors for their unwavering support, highlighting the transaction as a pivotal step towards achieving a healthier capital structure and enhanced financial agility.

The newly issued preferred shares come with a 12% cumulative dividend and the potential for conversion into common stock under conditions favorable to the shareholders, pending certain approvals and adjustments. This arrangement is designed to align previous note investments with the current market dynamics, offering long-term value to the shareholders while ensuring the company's alignment with regulatory requirements.

In addition to the debt-to-equity exchange, Splash Beverage Group is poised to make necessary filings with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its Form 10-Q for the quarter ended March 31, 2025. These filings are integral to the company's efforts to regain full compliance with the NYSE American's listing standards, further underscoring its dedication to transparency and regulatory adherence.

The company's proactive approach to financial management and compliance not only enhances its operational stability but also positions it favorably for future growth and expansion in the competitive beverage industry. By converting debt into equity, Splash Beverage Group not only addresses immediate compliance requirements but also lays a solid foundation for sustained financial health and shareholder value creation.