Splash Beverage Group, Inc. has successfully negotiated settlements with multiple legacy creditors representing approximately $3.3 million of accounts payable and accrued liabilities for aggregate cash consideration of approximately $550,000. As a result, Splash expects to recognize an approximate $2.75 million gain from the extinguishment of indebtedness, subject to final accounting review. The liability settlements are expected to eliminate approximately 84% of the negotiated obligations while requiring only approximately 17% of their face value to satisfy those claims.

In addition to the debt settlements, the Company's Board of Directors has approved a 1-for-4 reverse stock split of the Company's issued and outstanding common stock. This action is designed to advance its previously announced NYSE American compliance plan.

Financial Impact of Settlements

The settlements significantly reduce the Company's financial burden by addressing legacy liabilities at a fraction of their face value. The following table outlines the key financial details:

NYSE Compliance Plan

The 1-for-4 reverse stock split is part of Splash Beverage Group's broader strategy to meet the listing requirements of the NYSE American. The Board's approval marks a critical step in the Company's efforts to maintain its exchange listing and strengthen its financial position.

Splash Beverage Group, Inc. has entered into an exclusive global licensing agreement with Argent BioPharma Limited for CannEpil®, a proprietary, patent-protected cannabinoid-based investigational therapeutic approved for the treatment of drug-resistant epilepsy (DRE) in multiple European countries. This acquisition allows Splash to leverage existing international commercialization while pursuing U.S. regulatory advancement. Drug-resistant epilepsy affects approximately 30% of epilepsy patients worldwide and remains one of the most significant unmet needs in neurology, with millions of patients continuing to experience uncontrolled seizures despite currently available therapies.

CannEpil is a pharmaceutical-grade cannabinoid-based treatment approved for distribution in multiple international markets, including Ireland, the United Kingdom, Germany, and Australia. The therapy is manufactured under European Union Good Manufacturing Practice (EU-GMP) standards and benefits from an existing international distribution infrastructure. "Acquiring exclusive global rights to CannEpil represents a transformational milestone for Splash," said Brady Cobb, Interim Chief Executive Officer of Splash Beverage Group.

Transaction Details

Under the terms of the agreement, Splash has acquired exclusive worldwide rights to develop, commercialize, market, distribute, sublicense, and sell CannEpil® for the treatment of drug-resistant epilepsy, refractory epilepsy, seizure disorders, and related neurological conditions. The license encompasses all global territories and includes rights to future product improvements, reformulations, and next-generation product developments within the licensed field. The agreement grants Splash exclusive worldwide commercialization rights for an initial twenty-year term and includes rights to sublicense the technology to strategic pharmaceutical partners globally.

Financial Considerations

As consideration for the transaction, Mercer Street Global Opportunity Fund agreed to forgive approximately $5 million of indebtedness owed by Argent BioPharma. Additionally, Splash agreed to issue $5.5 million of newly issued preferred equity. Argent BioPharma will receive a royalty equal to 15% of net revenue generated from worldwide sales of CannEpil.

Strategic Investment and Development

C/M Capital Partners has committed a $1 million strategic investment to support regulatory advancement, clinical development planning, commercialization initiatives, and strategic partnership activities. Splash intends to deploy these proceeds toward advancing FDA-related activities, expanding the existing clinical and real-world evidence package, engaging leading U.S. epilepsy investigators, and identifying a strategic pharmaceutical development partner capable of supporting future U.S.-based clinical trials.

Regulatory and Commercial Milestones

CannEpil has achieved significant commercial and regulatory milestones. In Ireland, the therapy is eligible under the Medicinal Cannabis Access Program (MCAP) and is supported through reimbursement mechanisms administered by the Health Service Executive (HSE). In the United Kingdom, CannEpil has been authorized for importation and prescription through the Named Patient Request framework and has been utilized through specialist treatment pathways. The program has also initiated formal engagement with the U.S. Food and Drug Administration through the pre-IND process and has been assigned an Investigational New Drug (IND) number.