Splash Beverage Group, Inc. (NYSE American: SBEV) has announced a significant financial restructuring through a 1-for-40 reverse stock split of its common stock, effective March 27, 2025. This strategic move, authorized by the company's Board of Directors, is primarily aimed at ensuring compliance with the NYSE American's listing requirements. The reverse stock split will consolidate every 40 existing shares into one new share, significantly reducing the total number of outstanding common shares from 61,711,017 to approximately 1,542,776. Additionally, the company's authorized shares will be reduced from 300 million to 7.5 million.
The stock will continue to trade under the ticker symbol SBEV but will be assigned a new CUSIP number. Shareholders who hold their shares in book-entry form or through a broker are not required to take any action as a result of the split. In cases where the reverse stock split results in fractional shares, these will be rounded up to the nearest whole share. This adjustment is part of the company's broader strategy to maintain its listing on the NYSE American and potentially enhance the market's perception of its stock.
Furthermore, the reverse stock split will proportionally adjust the terms of outstanding warrants and stock options. Specifically, each publicly traded warrant (SBEV-WT) will become exercisable into 1/40th of a share, with the exercise price adjusted to $184.00. This financial maneuver underscores Splash Beverage Group's commitment to strengthening its market positioning. Known for its diverse portfolio of brands, including Copa di Vino, SALT tequila, Chispo tequila, and Pulpoloco sangria, the company is taking decisive steps to ensure its long-term growth and stability in the competitive beverage industry.
