Splash Beverage Group Implements 1-for-40 Reverse Stock Split to Maintain NYSE American Listing

Splash Beverage Group, a portfolio company of beverage brands, has initiated a significant corporate financial maneuver through a reverse stock split that will impact its publicly traded securities. The company's Board of Directors authorized a 1-for-40 reverse stock split, effective March 27, 2025, which will reduce the number of outstanding common shares while preserving stockholder ownership proportions.

The strategic move is primarily designed to ensure compliance with NYSE American listing requirements, specifically addressing per-share price standards. By consolidating 40 existing shares into one new share, Splash Beverage Group aims to maintain its listing status and potentially improve its stock's perceived market value.

Under the approved plan, the company's authorized common stock will dramatically reduce from 300 million shares to 7.5 million shares. The outstanding common shares will correspondingly decrease from 61,711,017 to approximately 1,542,776, excluding fractional shares. Importantly, stockholders' percentage ownership will remain substantially unchanged, with minor adjustments potentially occurring due to fractional share rounding.

The reverse stock split will comprehensively apply to the company's financial instruments, including outstanding warrants and stock options. Publicly traded warrants will be proportionately adjusted, with each becoming exercisable into 1/40th of a share at an increased exercise price of $184.00.

Shareholders holding shares through book-entry systems or via brokers will not need to take any action. VStock Transfer LLC will serve as the exchange agent to facilitate the transition. The company's stock will continue trading under the ticker 'SBEV' but will be assigned a new CUSIP number to reflect the corporate action.

This financial restructuring underscores the challenges faced by smaller public companies in maintaining exchange listing requirements. By proactively managing its stock's market perception and meeting listing standards, Splash Beverage Group demonstrates a strategic approach to corporate financial management and market positioning.

The reverse stock split represents a nuanced financial tool that allows companies to signal market confidence and meet regulatory expectations without fundamentally altering the underlying business operations or shareholder value.