Splash Beverage Group (NYSE American: SBEV) received a notice from NYSE Regulation on April 29, 2026, confirming the company is no longer in compliance with minimum shareholders’ equity requirements for continued listing. The Fort Lauderdale-based beverage company has until May 29, 2026, to submit a remediation plan; if NYSE accepts it, Splash gets a cure period running through January 29, 2027.
The financial exposure behind the notice is substantial. According to financial data compiled by Simply Wall St, SBEV carries negative shareholders’ equity of approximately $10.8 million against total liabilities of roughly $19.2 million. That puts the company in breach of NYSE American listing standards, which require a minimum positive equity threshold for continued trading.
Splash’s proposed route to compliance runs through a merger. On March 5, 2026, the company signed a non-binding letter of intent to combine with Medterra CBD, LLC, a federally compliant cannabinoid wellness operator that, according to SEC filings, generated over $52 million in revenue during fiscal year 2025 and was profitable. The deal structure, detailed in SEC disclosures, values Medterra at $37.6 million, with consideration payable in a mix of common stock and newly created preferred shares convertible at $0.50 per share. Splash has delivered a draft merger agreement to Medterra and is awaiting comments. The transaction remains subject to due diligence, a definitive agreement, audited financials, shareholder approval, and Splash raising capital to retire Medterra’s $10.4 million in existing debt.
The proposed combination would effectively reposition Splash as a public cannabinoid wellness platform rather than a beverage company. J.P. Larsen, Medterra’s founder, is expected to join the combined company’s board and take a senior operating role if the deal closes.
NYSE compliance notices of this type are not unusual for micro-cap operators under balance sheet stress, but the resolution timeline is tight. Splash must demonstrate a credible path to positive equity within approximately eight months, while simultaneously closing or advancing a complex cross-sector merger with an unaffiliated private company. The NYSE retains the right to delist if the plan is rejected or compliance is not restored by January 29, 2027.
Splash’s share price stood at approximately $0.39 as of late March 2026, per institutional data on Fintel.
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