Splash Beverage Group, Inc. (NYSE American: SBEV) has executed a non-binding letter of intent for a proposed merger with Medterra CBD, LLC, a leading manufacturer of federally compliant cannabinoid wellness products. The transaction represents a strategic re-alignment for Splash as it evolves into a growth-oriented public platform focused on cannabinoid wellness, regulated consumer health, and scalable brand development.
The proposed combination comes at a significant inflection point for the cannabinoid industry, with increasing regulatory clarity and growing institutional interest in federally compliant products. This includes ongoing federal policy developments related to hemp, CBD, and cannabis rescheduling directed by an executive order signed on December 16, 2025. The executive order also included a cannabinoid pilot initiative for CBD being evaluated through the Centers for Medicare & Medicaid Services (CMS), designed to assess structured pathways for physician-recommended, federally compliant hemp-derived CBD products within regulated healthcare frameworks.
Medterra brings established operational infrastructure, a disciplined regulatory approach, and a strong brand portfolio that served over 2 million customers across the United States and internationally. During fiscal year 2025, Medterra generated over $52 million in revenue and was profitable, demonstrating its operational capabilities. The company has developed a portfolio of science-driven cannabinoid formulations, some of which are already registered with the federal government and supported by consumer feedback and quality assurance infrastructure.
Industry participants suggest that structured reimbursement pathways for cannabinoid wellness products could significantly expand total addressable market opportunity, with some operators referencing a potential U.S. market exceeding $30 billion should federal reform and reimbursement frameworks advance. Management believes scaled, compliance-focused operators with documented product quality standards and consumer usage data could be well positioned as regulatory frameworks mature.
"This proposed combination represents more than a transaction - it marks the beginning of a new chapter for Splash as we evolve into a platform company built for the future of cannabinoid wellness," said Brady Cobb, Board Member of Splash Beverage Group. "We believe the industry is approaching a period of significant growth driven by regulatory progress, increasing consumer adoption, and institutional engagement."
Medterra's Founder and Managing Member, J.P. Larsen, stated, "This transaction represents a pivotal moment for Medterra. Partnering with Splash provides the resources and capital markets access to scale our platform at a time when the cannabinoid industry is entering a new era of legitimacy and growth driven by federal reform."
Subject to completion of the transaction and required approvals, J.P. Larsen from Medterra is expected to join the combined company's Board of Directors and assume a senior operating leadership role. The Company intends to file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission in connection with execution of the LOI, which will include additional details regarding the proposed transaction. The proposed transaction is subject to the execution of definitive agreements and shareholder approvals as required by the NYSE American Exchange.
More information about the companies can be found at https://splashbeveragegroup.com and https://medterracbd.com.
