Splash Beverage Group, Inc. has executed a non-binding Letter of Intent for a proposed merger with Medterra CBD, LLC, a leading manufacturer of federally compliant cannabinoid wellness products. The transaction represents a strategic re-alignment for Splash into a growth-oriented public platform focused on cannabinoid wellness, regulated consumer health, and scalable brand development.
The proposed combination would leverage Medterra's established operating infrastructure, which generated over $52 million in revenue during fiscal year 2025 while remaining profitable. Medterra has served over 2 million customers across the United States and internationally with a portfolio of science-driven cannabinoid formulations. The partnership aims to drive category leadership in the emerging cannabinoid wellness market by combining operational scale, access to public markets, and a disciplined growth strategy focused on curating a house of brands with proven consumer appeal.
Management believes the transaction aligns with increasing regulatory clarity and growing institutional interest in federally compliant cannabinoid products. This includes ongoing federal policy developments related to hemp, CBD, and cannabis rescheduling as directed by an executive order signed on December 16, 2025. That executive order included a cannabinoid pilot initiative for CBD being evaluated through the Centers for Medicare & Medicaid Services, designed to assess structured pathways for physician-recommended, hemp-derived CBD products within regulated healthcare frameworks, including potential federal reimbursement models.
Industry participants suggest structured reimbursement pathways could significantly expand the total addressable market opportunity, with some operators referencing a potential U.S. market exceeding $30 billion should federal reform and reimbursement frameworks advance. Management believes scaled, compliance-focused operators with documented product quality standards and consumer usage data could be well positioned as regulatory frameworks mature. Medterra has developed products already registered with the federal government and supported by consumer feedback and quality assurance infrastructure.
Brady Cobb, Board Member of Splash Beverage Group, stated the proposed combination represents more than a transaction, marking the beginning of a new chapter as the company evolves into a platform built for the future of cannabinoid wellness. J.P. Larsen, Medterra's Founder and Managing Member, noted that partnering with Splash provides resources and capital markets access to scale their platform as the cannabinoid industry enters a new era of legitimacy and growth driven by federal reform.
Subject to completion of the transaction and required approvals, J.P. Larsen from Medterra is expected to join the combined company's Board of Directors and assume a senior operating leadership role. The Company intends to file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission in connection with execution of the LOI. The proposed transaction is subject to the execution of definitive agreements and shareholder approvals as required by the NYSE American Exchange. Additional details regarding the Company's rebranding and strategic evolution will be announced in due course. More information about the companies can be found at https://splashbeveragegroup.com and https://medterracbd.com.
