Splash Beverage Group, Inc. (NYSE American: SBEV) has taken a significant step towards regaining compliance with NYSE American listing standards by exchanging approximately $12.67 million of outstanding promissory notes for newly issued preferred equity. This move is part of the company's broader strategy to convert debt into equity, thereby enhancing its balance sheet, reducing interest expenses, and improving its shareholder equity position.
The transaction underscores the company's commitment to strengthening its capital structure and achieving long-term financial stability. Bill Devereux, CFO of Splash Beverage Group, expressed gratitude towards investors for their support, highlighting the exchange as a reflection of investor confidence in the company's future.
The newly issued preferred shares come with a 12% cumulative dividend and the option for future conversion to common stock under favorable terms, subject to certain conditions. This strategic financial restructuring is designed to align previous note investments with current market conditions and deliver long-term value to shareholders.
Splash Beverage Group remains focused on restoring full compliance with NYSE American listing standards and is working closely with stakeholders and exchange representatives to achieve this goal efficiently. The company's efforts to improve its financial health and operational flexibility are critical steps towards sustaining its growth and innovation in the competitive beverage industry.
