Splash Beverage Group Inc. shares surged 14.71% during regular trading, driven by the recent acquisition of water extraction rights to a Costa Rican aquifer valued at $20 million. This strategic move is expected to enhance the company's asset base and operational capabilities.
Despite reporting no net revenue for Q3 and a significant net loss of $9.89 million, the acquisition has positively impacted investor sentiment. The company's total assets increased to $22.49 million, and stockholders' equity turned positive for the first time in a while.
The broader market also showed positive momentum, with the Nasdaq-100 and S&P 500 up 0.54% and 0.52%, respectively. However, the primary driver of Splash Beverage Group Inc's stock movement appears to be the strategic acquisition, which may position the company for future growth.
Splash Beverage Group, Inc. seeks to identify, acquire, and build early stage or under-valued beverage brands that have growth potential within its distribution system. The Company’s distribution system is comprehensive in the United States and is expanding to select international markets. Through its division Qplash, Splash’s distribution reach includes e-commerce access to both business-to-business (B2B) and business-to-consumer (B2C) customers. It markets beverage brands to customers throughout the United States that prefer delivery direct to their office, facilities, or homes. Its segments include Splash Beverage Group and E-Commerce. The Company's Splash Beverage Group segment includes the manufacture and distribution of non-alcoholic and alcoholic branded beverages. The E-commerce segment is engaged in the sale of e-commerce beverages. Its brands include Copa di Vino single-serve wine, Pulpoloco Sangria, SALT Tequila, and Chispo Tequila.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
