Splash Beverage Group Implements 1-for-40 Reverse Stock Split to Meet NYSE Listing Requirements

Splash Beverage Group has announced a significant corporate financial maneuver with its planned reverse stock split, designed to address potential delisting concerns and maintain its position on the NYSE American exchange. The company will consolidate its existing shares at a ratio of one new share for every 40 outstanding shares, effective March 27, 2025.

Under the approved plan, the company's authorized common stock will decrease from 300 million shares to 7.5 million shares. Shareholders' proportional ownership will remain consistent, with minor adjustments resulting from fractional share rounding. The reverse stock split will not require direct action from current stockholders holding shares in book-entry form or through brokerage accounts.

The strategic move serves multiple purposes for Splash Beverage Group. Primarily, it aims to meet the per-share price requirements mandated by the NYSE American, which is critical for maintaining the company's public trading status. By reducing the number of outstanding shares, the split is expected to potentially increase the stock's individual share price.

Importantly, the reverse split will also apply to outstanding warrants and stock options, with proportional adjustments to exercise prices. Each publicly traded warrant will become exercisable into 1/40th of a share at an adjusted exercise price of $184.00.

Financial experts often view reverse stock splits as a mechanism for companies to signal financial restructuring and maintain exchange listing compliance. While the total market capitalization remains unchanged, such actions can help improve investor perception and trading dynamics.

VStock Transfer LLC will serve as the exchange agent for the transaction, ensuring a smooth implementation of the reverse stock split. Shareholders will not need to take any specific actions, as the conversion will occur automatically at the specified ratio.

The decision underscores Splash Beverage Group's commitment to maintaining its public market presence and adhering to regulatory standards. By proactively addressing potential listing challenges, the company demonstrates strategic financial management in a competitive beverage industry landscape.