Splash Beverage Group, Inc. (NYSE American: SBEV) has exchanged approximately $12.67 million of outstanding promissory notes for newly issued preferred equity, a strategic initiative aimed at regaining compliance with NYSE American listing standards. This debt-to-equity conversion is expected to enhance the company's balance sheet, reduce interest expenses, and improve its shareholder equity position, marking a significant step towards financial stability.
Bill Devereux, CFO of Splash Beverage Group, acknowledged the support of investors, emphasizing the exchange as a testament to their confidence in the company's future. The preferred shares issued in this transaction carry a 12% cumulative dividend and offer the option for conversion to common stock under favorable terms, contingent upon meeting specific conditions. This structure is intended to align previous note investments with current market dynamics, fostering long-term value for shareholders.
The company remains focused on achieving full compliance with NYSE American listing standards, actively collaborating with stakeholders and exchange representatives to accelerate the process. Splash Beverage Group's efforts to restructure its financial framework are integral to its overarching strategy for sustainable growth and operational excellence.
