Splash Beverage Group, Inc. has taken a significant step towards financial restructuring by exchanging approximately $12.67 million of outstanding promissory notes for newly issued preferred equity. This move is aimed at regaining compliance with the NYSE American’s shareholder equity requirements, a crucial milestone for the company’s continued listing on the exchange. The transaction not only strengthens Splash’s balance sheet by converting debt into equity but also reduces interest expenses, thereby enhancing the company’s financial flexibility and shareholder equity position.

The exchange reflects a broader strategy to realign the company’s capital structure with current market conditions. The newly issued preferred shares come with a 12% cumulative dividend and the potential for conversion to common stock under favorable terms, subject to certain conditions. This arrangement is designed to offer long-term value to shareholders while supporting the company’s growth objectives. Splash Beverage Group’s commitment to restoring full compliance with NYSE American listing standards underscores its dedication to maintaining a strong and sustainable financial foundation.

Bill Devereux, CFO of Splash Beverage Group, expressed gratitude towards investors for their support during this transformative period. The company’s proactive measures, including the debt-to-equity exchange and forthcoming SEC filings, demonstrate its resolve to overcome financial challenges and secure a prosperous future. As Splash continues to navigate the complexities of the beverage industry, its strategic financial maneuvers are expected to pave the way for sustained growth and innovation in its portfolio of brands.

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