Splash Beverage Group (SBEV) Registration filing summary

Company overview and business model

• Historically focused on acquiring and building beverage brands, but pivoted in 2026 to the regulated cannabinoid and wellness markets due to lack of meaningful beverage sales.

• Acquired exclusive worldwide rights to CannEpil®, a cannabinoid-based pharmaceutical for drug-resistant epilepsy and related neurological conditions, with plans to expand into veterinary uses.

• Entered a collaboration to develop CannEpil® for veterinary oncology and pain management, targeting both U.S. and international markets.

• Strategic focus is on developing, commercializing, and distributing CannEpil®, while exploring additional strategic transactions in the wellness sector.

Financial performance and metrics

• Reported net loss of $25.2 million for 2025, with recurring losses and negative cash flows from operations.

• Revenues declined sharply: $0.07 million in 2025 vs. $0.8 million in 2024, primarily due to lack of operating capital.

• Working capital deficit and accumulated deficit of $184.4 million as of March 31, 2026.

• Cash and cash equivalents were $381,195 as of March 31, 2026, insufficient for 12 months of operations.

• Auditor issued a going concern warning due to recurring losses and liquidity issues.

Use of proceeds and capital allocation

• May receive up to $30.8 million in gross proceeds from the equity line of credit (ELOC) with C/M Capital, depending on share sales and market price.

• Proceeds intended for working capital, resolving disputes, satisfying payables, and general corporate purposes, including strategic pivot into cannabinoid wellness.

• 30% of proceeds above $3 million from the ELOC must be used to repay outstanding notes until paid in full.

• Management retains broad discretion over allocation of net proceeds.