Splash Beverage Group to acquire Medterra CBD in $83mln deal, strategic re-alignment announced.
TL;DR
Splash Beverage Group plans to acquire Medterra CBD in an $83 million deal, aiming to create a public cannabinoid wellness platform. The merger leverages Medterra's $52 million revenue and 2 million customers, targeting growth amid regulatory changes.
Tags
• Splash Beverage Group signs Letter of Intent with Medterra for acquisition and merger. • Proposed combination marks strategic re-alignment as a public cannabinoid wellness platform. • Medterra is a leading manufacturer and multi-brand operator of federally compliant cannabinoid wellness products. • Sold to over 2 million customers across the US and internationally. • Transaction represents a transformative step in the Company's evolution.
Splash Beverage Group, Inc. (NYSE American: SBEV) has entered a non-binding Letter of Intent (LOI) to merge with Medterra CBD, LLC, a federally compliant hemp and CBD operator, marking a strategic re-alignment as a public cannabinoid wellness platform. The proposed transaction aims to leverage Medterra's established infrastructure, which generated $52 million in revenue during fiscal 2025, and its portfolio of science-driven cannabinoid products marketed to over 2 million customers globally.
The merger is positioned to capitalize on regulatory developments, including an executive order signed by President Trump on December 16, 2025, which directs federal agencies to evaluate pathways for physician-recommended CBD products under frameworks like the Centers for Medicare & Medicaid Services (CMS) pilot initiative. Splash and Medterra also anticipate potential growth from structured reimbursement models, with industry estimates suggesting a U.S. market exceeding $30 billion if federal reforms advance.
Key to the transaction is Medterra's disciplined regulatory approach and profitability, which align with Splash's strategy of scaling through established brands. J.P. Larsen, Medterra's founder, will join the combined company's board and assume a senior leadership role. The deal requires definitive agreements, shareholder approvals, and a Form 8-K filing with the SEC.
While management highlights the strategic fit, risks include regulatory uncertainties, capital requirements, and execution challenges typical of mergers. The transaction underscores the evolving landscape for cannabinoid wellness, where compliance and operational scale are increasingly critical.
(https://www.eqs-news.com/news/corporate/splash-beverage-group-signs-letter-of-intent-for-acquisition-and-merger-with-established-hemp-and-cbd-operator-medterra/061c33ad-dcb1-4e87-88c0-cfd89888e14f_en): Source materials provided.
