Splash Beverage Group, Inc. (NYSE American: SBEV) has executed a non-binding Letter of Intent for a proposed merger with Medterra CBD, LLC, a leading manufacturer of federally compliant cannabinoid wellness products. This transaction represents a transformative step in Splash's evolution toward becoming a growth-oriented platform focused on cannabinoid wellness, regulated consumer health, and scalable brand development.
The proposed combination positions the companies to drive category leadership in the emerging cannabinoid wellness market by leveraging operational scale, access to public markets, and a disciplined growth strategy. Medterra brings an established operating infrastructure, strong brand portfolio serving over 2 million customers, and a proven management team. During fiscal year 2025, Medterra generated over $52 million in revenue and was profitable, demonstrating its operational capabilities.
This merger matters because it occurs at a critical regulatory and market inflection point. The transaction aligns with increasing regulatory clarity and growing institutional interest in federally compliant cannabinoid products, including ongoing federal policy developments related to hemp, CBD and cannabis rescheduling. These developments stem from an executive order signed on December 16, 2025, which also included a cannabinoid pilot initiative for CBD being evaluated through the Centers for Medicare & Medicaid Services.
The potential impact on consumers and the industry could be significant. The CMS pilot initiative is designed to assess structured pathways for physician-recommended, federally compliant hemp-derived CBD products within regulated healthcare frameworks, including possible reimbursement models for qualifying beneficiaries from the federal government. Industry participants suggest that structured reimbursement pathways could expand the total addressable market opportunity, with some operators referencing a potential U.S. market exceeding $30 billion should federal reform and reimbursement frameworks advance.
Management believes scaled, compliance-focused operators with documented product quality standards and consumer usage data could be well positioned as regulatory frameworks mature. Medterra has developed a portfolio of science-driven cannabinoid formulations, some already registered with the federal government and supported by consumer feedback and quality assurance infrastructure. More information about Medterra's approach can be found at https://medterracbd.com.
Brady Cobb, Board Member of Splash Beverage Group, stated that the proposed combination represents more than a transaction, marking the beginning of a new chapter as the company evolves into a platform built for the future of cannabinoid wellness. He noted the industry is approaching significant growth driven by regulatory progress, increasing consumer adoption, and institutional engagement.
Medterra's Founder and Managing Member, J.P. Larsen, emphasized that partnering with Splash provides resources and capital markets access to scale their platform as the cannabinoid industry enters a new era of legitimacy and growth driven by federal reform. Subject to completion of the transaction and required approvals, Larsen is expected to join the combined company's Board of Directors and assume a senior operating leadership role.
The Company intends to file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission in connection with execution of the LOI, which will include additional details regarding the proposed transaction. The proposed transaction is subject to the execution of definitive agreements and shareholder approvals as required by the NYSE American Exchange. More information about Splash Beverage Group's broader strategy is available at https://splashbeveragegroup.com.
This development is important because it represents a strategic re-alignment of a public company toward the growing cannabinoid wellness sector at a time when regulatory frameworks are evolving. The combination could create a stronger entity better positioned to participate in emerging healthcare channels while operating within existing federally compliant guidelines. As regulatory clarity increases and potential reimbursement pathways develop, this merger positions the combined company to potentially capture significant market share in what could become a multi-billion dollar industry.
