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FORT LAUDERDALE, FL - Splash Beverage Group, Inc. (NYSE American: SBEV), a diversified beverage company with a market capitalization of $13.33 million, has reported an abnormal spike in market activity as it undergoes the appeal process with the New York Stock Exchange (NYSE) concerning its listing status. The stock has shown significant volatility, posting a remarkable 135% gain in the past week despite being down 49% over the past year, according to InvestingPro data. The company has not identified any material developments since its last update on a potential merger with Western Son Vodka, attributing the heightened trading to algorithmic transactions and short selling.
The NYSE American Company Guide requires companies to investigate and address any unusual market actions. Splash has complied, issuing a statement that there has been no significant business change since the merger announcement. InvestingPro analysis reveals concerning fundamentals, with a weak Financial Health Score of 1.49 out of 5 and significant challenges in maintaining adequate liquidity, as indicated by a current ratio of 0.17. The company also indicated that its shares and warrants will continue to be traded on the NYSE American during the appeal, which is expected to last between 60 to 90 days.
Splash Beverage was found non-compliant with certain equity requirements, as per Sections 1003(a)(i), (ii), and (iii) of the NYSE Listed Company Manual, at the conclusion of an 18-month compliance period that ended on April 6, 2025. The company’s financial challenges are evident in its performance metrics, with revenue declining by 70% in the last twelve months to $6.26 million, and an EBITDA of -$12.35 million. Despite this, the company remains optimistic about rectifying the deficiency within the appeal timeframe, although it acknowledges there is no assurance of a positive outcome. For comprehensive analysis of SBEV’s financial health and growth prospects, investors can access detailed Pro Research Reports available on InvestingPro.
The company’s portfolio includes brands such as Copa di Vino wine, SALT flavored tequilas, Chispo tequila, and Pulpoloco sangria. The management team, known for its experience in developing major beverage brands, aims to expand Splash’s brand presence and distribution globally, though analysts anticipate a sales decline in the current year according to InvestingPro data.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and the actual results could differ materially from those anticipated in these statements. The company advises against undue reliance on these forward-looking statements, which are valid only as of their date.
In other recent news, Splash Beverage Group has made significant announcements regarding its operations and strategic direction. The company reported key executive changes, with CFO Julius Ivancsits set to resign by February 18, 2025, and Dr. John Paglia planning to step down from his role as an independent director by March 7, 2025. These transitions are not due to any disagreements within the company, and Splash Beverage Group is actively searching for replacements to ensure smooth governance and financial management continuity. In a strategic move, Splash Beverage Group has signed an updated Letter of Intent to acquire Western Son Vodka, aiming to double its trailing twelve-month revenue. The acquisition, pending final agreements and approvals, will involve a stock-for-equity transaction and the assumption of certain debts, aligning the interests of both parties involved. CEO Robert Nistico expressed optimism about the acquisition, highlighting its potential to boost revenue and operational efficiencies. Western Son Vodka’s President, Carlos Guillem, views this agreement as a milestone that will enhance the brand’s growth and market presence. The companies are working towards finalizing the transaction within the current quarter.
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