Splash Beverage Group, Inc. (NYSE American: SBEV) has taken a significant step towards financial restructuring by exchanging approximately $12.67 million of outstanding promissory notes for newly issued preferred equity. This move is aimed at regaining compliance with the NYSE American's shareholder equity requirements, a critical milestone for the company's future on the exchange.
The exchange not only strengthens Splash Beverage Group's balance sheet by converting debt into equity but also reduces interest expenses and improves its shareholder equity position. This strategic financial maneuver is part of the company's broader efforts to ensure long-term sustainability and growth. The preferred shares issued come with a 12% cumulative dividend and the potential for conversion to common stock under favorable conditions, offering a win-win scenario for both the company and its investors.
Bill Devereux, CFO of Splash Beverage Group, expressed gratitude towards the investors for their support, highlighting the transaction as a testament to their confidence in the company's direction. The preferred equity structure is designed to align with current market conditions, providing long-term value to shareholders while facilitating the company's compliance with NYSE American listing standards.
In addition to the debt-to-equity exchange, Splash Beverage Group is required to submit certain filings to the SEC, including its Form 10-K for the year ended December 31, 2024, and its Form 10-Q for the quarter ended March 31, 2025, to fully comply with NYSE American requirements. The company remains committed to working closely with stakeholders and exchange representatives to achieve full compliance efficiently.
This development is crucial for Splash Beverage Group as it navigates the challenges of maintaining its listing on the NYSE American, ensuring access to capital markets, and continuing its growth trajectory in the competitive beverage industry. The successful execution of this financial strategy could serve as a model for other companies facing similar challenges, underscoring the importance of proactive financial management and investor confidence in achieving corporate objectives.
