SPLASH BEVERAGE GROUP Faces Delisting Threat

TL;DR

**SBEV is facing delisting, expect major liquidity and price issues.**

AI Summary

SPLASH BEVERAGE GROUP, INC. (SBEV) filed an 8-K on January 29, 2024, reporting an event from December 20, 2023, concerning a 'Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.' This indicates the company is facing issues with maintaining its listing on a stock exchange, which could lead to its shares being delisted. For investors, this is a critical red flag as delisting often results in reduced liquidity, lower stock prices, and difficulty trading shares, making the stock a much riskier investment.

Why It Matters

This filing signals that SPLASH BEVERAGE GROUP, INC. is in danger of being delisted from a stock exchange, which typically causes a significant drop in share price and makes the stock much harder to sell.

Risk Assessment

Risk Level: high — The company is at high risk due to potential delisting, which severely impacts stock liquidity and investor confidence.

Analyst Insight

A smart investor would consider selling their shares of SPLASH BEVERAGE GROUP, INC. to avoid further losses and reduced liquidity, or at least thoroughly investigate the reasons for the delisting notice and the company's plan to address it.

Key Players & Entities

• SPLASH BEVERAGE GROUP, INC. (company) — the registrant facing delisting issues
• December 20, 2023 (date) — date of the earliest event reported regarding delisting notice
• January 29, 2024 (date) — date the 8-K filing was made
• 001-40471 (other) — Commission File Number for SPLASH BEVERAGE GROUP, INC.

Forward-Looking Statements

• SPLASH BEVERAGE GROUP, INC. shares will experience significant downward pressure and reduced trading volume. (SBEV) — high confidence, target: Q1 2024
• The company will likely announce further details regarding its delisting status or a plan to regain compliance. (SBEV) — medium confidence, target: Q2 2024

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share SBEV NYSE American LLC
• $2.0 million — ve stockholders' equity of (i) at least $2.0 million if it has reported losses from continui
• $4.0 million — o have stockholders' equity of at least $4.0 million if it has reported losses from continui

Filing Documents

• e5390_8-k.htm (8-K) — 30KB
• e5390_ex99-1.htm (EX-99.1) — 19KB
• 0001731122-24-000175.txt ( ) — 268KB
• sbev-20231220.xsd (EX-101.SCH) — 4KB
• sbev-20231220_def.xml (EX-101.DEF) — 26KB
• sbev-20231220_lab.xml (EX-101.LAB) — 36KB
• sbev-20231220_pre.xml (EX-101.PRE) — 25KB
• e5390_8-k_htm.xml (XML) — 6KB

01 Notice of Delisting or Failure to Satisfy a Continued

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On October 6, 2023, the Splash Beverage Group, Inc. (the "Company") received a notification (the "Deficiency Letter") from the staff at NYSE American LLC ("NYSE American") that it was not in compliance with Section 1003(a)(i) of the continued listing standards set forth in the NYSE American Company Guide (the "Company Guide"), requiring a listed company to have stockholders' equity of (i) at least $2.0 million if it has reported losses from continuing operations or net losses in two of its three most recent fiscal years. The Company submitted a proposed compliance plan to the NYSE American. Advising it of the actions it has or will take to regain compliance by April 6, 2025. On December 20, 2023, the Company received a notification (the "Plan Letter"), with NYSE acceptance of the proposed plan and further deficiency notice. In the Plan Letter the NYSE indicated that in addition to Section 1003(a)(i) of the Company Guide, the Company was also not in compliance with Section 1003(a)(ii) of the Company Guide, requiring a listed company to have stockholders' equity of at least $4.0 million if it has reported losses from continuing operations or net losses in three of its four most recent fiscal years. If the Company is not in compliance with the continued listing standards by April 6, 2025 or if the Company does not make progress consistent with the Plan during the plan period, the NYSE American may commence delisting procedures.

01 Other Events

Item 8.01 Other Events. On January 26, 2024, the Company issued a press release relating to the matters described in Item 3.01 of this Current Report on Form 8-K, a copy of which is attached hereto as Exhibit 99.1.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits: 99.1 Press Release dated January 26, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Forward-Looking Statements

Forward-Looking Statements The Company cautions you that statements included in this Current Report on Form 8-K that are not a description of historical facts are forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "indicates," "will," "intends," "potential," "suggests," "assuming," "designed" and similar expressions are intended to identify forward-looking statements. These statements are based on the Company's current beliefs and expectations. These forward-looking statements include statements regarding the Company's expectations regarding a period to comply with the Plan and applicable Exchange requirements, and actions of the Company and/or the Exchange to be taken with respect to matters discussed in the Deficiency Letter and the Plan Letter. The inclusion of forward-looking statements should not be regarded as a representation by the Company that any of its plans will be achieved. Actual results may differ from those set forth in this release due to the risks and uncertainties associated with continued listing on the Exchange, risks and uncertainties inherent in the Company's business, and other risks described in the Company's filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to revise or update this report to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized. SPLASH BEVERAGE GROUP, INC. Dated: January 29, 2024 By: /s/ Robert Nistico Name: Robert Nistico Title: Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR