Splash Beverage Group, known for its diverse portfolio including Copa di Vino wine, SALT flavored tequilas, Chispo tequila, and Pulpoloco sangria, is currently navigating a precarious regulatory landscape. The company received a notice from NYSE American indicating it failed to meet compliance standards by the end of its compliance plan period on April 6, 2025, specifically Sections 1003(a)(i), (ii), and (iii) of the Listed Company Manual.
The implications of this notice are significant, as non-compliance could lead to delisting from the exchange, a move that would severely impact the company's visibility and investor confidence. In response, Splash Beverage Group has outlined a strategic approach to address the issue, including an appeal to the Listing Qualification Panel. The company has a seven-day window from the notice date to file this appeal, with the process expected to take between 60 to 90 days. During this period, the company is optimistic about rectifying the shareholder equity deficiencies that led to the compliance notice.
Despite the uncertainty surrounding the appeal's outcome, Splash Beverage Group remains hopeful about its ability to satisfy NYSE American's requirements. Success in this endeavor would allow the company to continue trading its common stock and warrants on the exchange. This situation underscores the challenges companies face in maintaining compliance with stock exchange regulations and the potential consequences of failing to do so. For Splash Beverage Group, the next few months will be critical in determining its future on NYSE American and its ability to sustain its growth trajectory amidst regulatory hurdles.
