Splash Beverage Group Announces Significant Balance Sheet Improvement and Board Approval of Reverse Stock Split as Company Continues Strategic Transformation

Rhea-AI Summary

Splash Beverage Group (NYSE American: SBEV) announced two major steps to advance its NYSE American compliance plan and strengthen its balance sheet. The company settled approximately $3.3 million of legacy accounts payable and accrued liabilities for about $550,000 in cash, expecting an approximate $2.75 million gain from extinguishment of indebtedness, subject to final accounting review. The settlements are expected to remove roughly 84% of the negotiated obligations while paying about 17% of their face value.

The board also approved a 1-for-4 reverse stock split of common shares. Outstanding shares will be reduced from about 25.2 million to 6.3 million, and authorized shares from 400 million to 100 million. No fractional shares will be issued; fractions will be rounded down to the nearest whole share. The split becomes effective after market close on July 24, 2026, with post-split trading starting July 27, 2026 under the symbol SBEV with new CUSIP 84862C401. According to Splash Beverage, the reverse split is intended to help maintain compliance with NYSE American minimum share price requirements.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

• $3.3 million of legacy liabilities settled for about $550,000 cash
• Expected gain on debt extinguishment of approximately $2.75 million, pending review
• Liability settlements eliminate about 84% of negotiated obligations
• Reverse split supports NYSE American minimum share price compliance plan
• Outstanding shares reduced from 25.2 million to about 6.3 million
• Authorized shares cut from 400 million to 100 million

Negative

• 1-for-4 reverse stock split consolidates existing shareholdings
• Fractional post-split shares rounded down, slightly reducing some holders’ share counts

Market Context

The stock is dropping -15.3% following this news. A sharp decline could reflect concern over the 1-f...

Analysis

The stock is dropping -15.3% following this news. A sharp decline could reflect concern over the 1-for-4 reverse split despite the expected $2.75 million gain from liability settlements. The stock has previously sold off after seemingly constructive updates, and with low short interest, downside would be less cushioned by covering demand.

Key Figures

Legacy liabilities settled: $3.3 million Cash paid on settlement: $550,000 Gain on debt extinguishment: $2.75 million +5 more

8 metrics

Legacy liabilities settled $3.3 million Accounts payable and accrued liabilities negotiated with multiple creditors

Cash paid on settlement $550,000 Aggregate cash consideration to settle legacy obligations

Gain on debt extinguishment $2.75 million Expected accounting gain from negotiated settlements, pending final review

Obligations eliminated 84% Portion of negotiated legacy obligations removed by settlements

Cash vs. face value 17% Cash required to satisfy negotiated obligations relative to face value

Reverse split ratio 1-for-4 Board-approved reverse stock split of common shares

Shares outstanding post-split 6.3 million Reduction from approximately 25.2 million shares outstanding

Authorized shares reduced 100 million From 400 million authorized common shares under articles of incorporation

Historical Context

5 past events · Latest: Jul 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 09	Compliance plan accepted	Positive	-5.0%	NYSE American accepted a compliance plan, granting time to regain listing standards.
Jul 07	CannEpil license terms	Positive	-23.2%	Detailed 20-year global CannEpil license with royalties and strategic investment.
Jul 06	CannEpil rights deal	Positive	+42.5%	Announced exclusive global CannEpil rights and financing structure for development.
Jun 15	Avicanna investment	Positive	+0.1%	Completed CDN$300,000 strategic investment in cannabinoid biopharma Avicanna.
Jun 03	Compliance and going concern	Negative	+71.0%	Corporate update on NYSE compliance process and going concern disclosure.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent headlines tied to compliance and strategic cannabinoid deals have often driven large, sometimes contrary price moves, with several seemingly positive updates followed by negative reactions.

Key Terms

reverse stock split, cusip, equity incentive plans, stockholders' equity

4 terms

reverse stock split financial

"The Company's Board of Directors has approved a 1-for-4 reverse stock split"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

cusip financial

"will receive a new CUSIP number of 84862C401"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

View in glossary

equity incentive plans financial

"shares reserved under the Company's equity incentive plans"

Equity incentive plans are company programs that pay employees, executives, or directors with company stock, stock options, or share units instead of or in addition to cash, aiming to align their interests with shareholders—like giving team members a stake in the house they help build. For investors this matters because such plans can motivate better company performance but also dilute existing ownership and increase reported compensation costs, so they affect future earnings, voting power, and share value.

stockholders' equity financial

"strengthens our balance sheet, improves stockholders' equity"

Stockholders' equity is the portion of a company's assets that belongs to its owners after all debts and obligations are paid; think of it as the value left for shareholders if the company sold everything and paid off what it owes. Investors watch it because it shows the company's net worth, indicates how much of growth is funded by owners versus debt, and helps assess financial health and the potential for future dividends or stock value increases — like the equity in a house after the mortgage is settled.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FORT LAUDERDALE, Fla., July 14, 2026 (GLOBE NEWSWIRE) -- Splash Beverage Group, Inc. (NYSE American: SBEV) ("Splash," "Splash Beverage" or the "Company") today announced two significant actions designed to strengthen the Company's financial position and advance its previously announced NYSE American compliance plan.

The Company has successfully negotiated settlements with multiple legacy creditors representing approximately $3.3 million of accounts payable and accrued liabilities for aggregate cash consideration of approximately $550,000. As a result, Splash expects to recognize an approximate $2.75 million gain from the extinguishment of indebtedness, subject to final accounting review. The liability settlements announced today are expected to eliminate approximately 84% of the negotiated obligations while requiring only approximately 17% of their face value to satisfy those claims.

In addition, the Company's Board of Directors has approved a 1-for-4 reverse stock split of the Company's issued and outstanding common stock. The details of the reverse stock split are described below.

The reverse stock split is intended to support the Company's continued compliance with NYSE American's minimum share price requirements and forms an important component of the Company's previously announced Exchange-approved compliance plan.

Brady Cobb, Interim Chief Executive Officer, commented: "Today's announcement reflects continued execution against the strategic and financial roadmap we presented to both our shareholders and the NYSE American. In just the past few months, we have secured acceptance of our NYSE compliance plan, strengthened our liquidity through our effective equity line registration, substantially improved our balance sheet through negotiated settlements with legacy creditors, completed our strategic investment in Avicanna, acquired the exclusive worldwide licensing rights to CannEpil®, and continue advancing additional initiatives designed to create long-term shareholder value."

"Negotiating approximately $3.3 million of legacy liabilities down to roughly $550,000 is a meaningful accomplishment for our shareholders. Every unnecessary legacy obligation that we remove strengthens our balance sheet, improves stockholders' equity, and allows us to direct more resources toward executing our long-term strategy. These settlement agreements reflect disciplined capital allocation and our commitment to rebuilding the Company's financial foundation."

Reverse Stock Split Supports Continued NYSE American Listing

The Company's Board of Directors has approved a 1-for-4 reverse stock split of the Company's issued and outstanding common stock.

Upon effectiveness:

• Every four issued and outstanding shares of the Company's common stock will automatically combine into one share of common stock.
• Appropriate proportional adjustments will be made to outstanding stock options, warrants, restricted stock units, preferred stock conversion ratios, and shares reserved under the Company's equity incentive plans.
• No fractional shares will be issued as a result of the reverse stock split. Instead, all fractional shares will be rounded down to the nearest whole share.
• The number of shares of common stock outstanding will be reduced from approximately 25.2 million shares to approximately 6.3 million shares.
• The number of shares of common stock authorized under the Company’s articles of incorporation will be reduced from 400 million shares to 100 million shares.
• The Company's common stock will continue trading on the NYSE American under the symbol "SBEV" and will receive a new CUSIP number of 84862C401.
  
  

The reverse stock split will be effective after the market closes on July 24, 2026 following the filing and effectiveness of an amendment to the Company's articles of incorporation, with the common stock trading on a post-split basis when the market opens on July 27, 2026.

The reverse stock split is intended to support the Company's continued compliance with NYSE American's minimum share price requirements and is a key component of the Company's previously announced compliance plan accepted by the Exchange.

"The reverse stock split is an important corporate action supporting our broader compliance strategy," Cobb continued. "While a reverse stock split does not change the underlying value of the Company, maintaining our NYSE American listing is critically important as we continue strengthening our balance sheet and executing our compliance plan. We believe preserving our national exchange listing enhances our visibility, credibility, liquidity, and ability to attract a broader universe of institutional and retail investors."

"Our focus remains disciplined execution. We intend to continue improving the Company's financial position, achieving full compliance with NYSE American's listing standards as expeditiously as possible, and creating sustainable long-term value for our shareholders."

About Splash Beverage Group, Inc.

Splash Beverage Group, Inc. (NYSE American: SBEV) is a publicly traded company headquartered in Fort Lauderdale, Florida. The Company is pursuing a strategic transformation toward becoming a cannabinoid health, wellness, and biopharmaceutical platform through disciplined capital allocation, strategic investments, acquisitions, and other platform-building initiatives.

More Information

Splash Beverage Group

Contact Information

Splash Beverage Group
Info@SplashBeverageGroup.com

Media Contact

Angela Gorman
AMWPR
angela@amwpr.com
917-348-0083

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s efforts towards balance sheet improvement, an anticipated $2.75 million gain from the extinguishment of indebtedness, capital raising efforts, completion of a reverse stock split and NYSE American compliance efforts, and plans to create long-term shareholder value. Forward-looking statements are prefaced by words such as "anticipate," "expect," "plan," "could," "may," "will," "should," "would," "intend," "potential," "believe," "estimate," "forecast," "project," and similar words.

Forward-looking statements are based on current expectations and assumptions regarding the Company’s business and future conditions and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by such forward-looking statements due to a variety of factors, including, without limitation, the possibility that our efforts and strategic initiatives we pursue do not yield the benefits anticipated or sought, the possibility that projections and expectations with respect to our future operations and financial results prove to be incorrect including with respect to the anticipated $2.75 million gain from the extinguishment of indebtedness, our ability to raise the capital necessary to fund and execute on our strategic initiatives and otherwise meet our working capital needs, our need to comply with NYSE American’s continued listing standards, our ability to recommence revenue generating activities with our limited staffing, and the status of evolving regulatory conditions within the cannabinoid and wellness industries.

Additional information concerning these and other risk factors is contained in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2025 and the Final Prospectus on Form 424B3 filed on June 26, 2026. Any forward-looking statement made by the Company speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by law.

FAQ

What balance sheet improvement did Splash Beverage (SBEV) announce on July 14, 2026?

Splash Beverage announced settlements on about $3.3 million of legacy liabilities for roughly $550,000 cash. According to Splash Beverage, this is expected to generate an approximate $2.75 million gain from extinguishment of indebtedness and remove about 84% of negotiated obligations.

How will Splash Beverage’s 1-for-4 reverse stock split affect SBEV shares?

Every four SBEV common shares will automatically combine into one share in the reverse split. According to Splash Beverage, outstanding shares will decline from about 25.2 million to 6.3 million, with no fractional shares issued and fractions rounded down to the nearest whole share.

When does the Splash Beverage (SBEV) reverse stock split take effect and start trading?

The reverse stock split becomes effective after market close on July 24, 2026. According to Splash Beverage, SBEV common stock will begin trading on a post-split basis on July 27, 2026 on NYSE American under the same symbol with new CUSIP 84862C401.

Why is Splash Beverage (SBEV) implementing a reverse stock split on NYSE American?

The reverse stock split is intended to help support compliance with NYSE American’s minimum share price rules. According to Splash Beverage, the split is a key element of its previously accepted exchange compliance plan and part of a broader strategic and financial transformation.

How are Splash Beverage’s authorized SBEV shares changing with the reverse split?

Authorized common shares will be reduced from 400 million to 100 million alongside the 1-for-4 split. According to Splash Beverage, this change accompanies the reduction of outstanding shares and is implemented through an amendment to the company’s articles of incorporation.

Will Splash Beverage shareholders receive fractional shares after the SBEV reverse split?

Shareholders will not receive fractional SBEV shares as part of the reverse split. According to Splash Beverage, all fractional post-split share amounts will be rounded down to the nearest whole share, slightly reducing holdings for investors who would otherwise be entitled to fractions.