Splash Beverage Group, the US company behind Salt Tequila and Tapout recovery drinks, is nearing another acquisition and has raised capital to help fund the deal.
The raise was made through the private placement of convertible notes and equity in the pending acquisition.
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Splash Beverage said the deal, which is yet to be finalised, has attracted interest from “new accredited and preexisting investors”.
In a statement, the company said the funds will give it “essential working capital” for its existing businesses and help it pursue a “complementary acquisition anticipated to enhance the company’s product offerings and operational efficiencies”.
Splash Beverage Group CEO Robert Nistico said: ‘We are thrilled to have secured this funding, which positions us to accelerate our growth strategy. We are currently under a letter of intent with a complementary beverage company that aligns perfectly with our vision. This will allow us to leverage our strengths and deliver enhanced value to our customers and shareholders.”
He added: “Due to confidentiality, we cannot disclose the name of the acquisition at this time but will when definitive agreements have been executed. I will just say that it is not related to the previously announced Western Son acquisition.”
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By GlobalDataIn September, Splash Beverage Group announced plans to buy Texas-based JEM Beverage Management Company, the owner of vodka brand Western Son.
Other products in the Splash Beverage Group portfolio include Copa di Vino wine by the glass, Salt flavoured Tequilas and Pulpoloco sangria.
In the three months to the end of June, the company generated a net loss of $5.3m, compared to $5.6m in the corresponding quarter a year earlier.
Net revenues stood at $1.05m, a decrease from $5.2m the year previous. Revenue from e-commerce platform Qplash dropped 97% amid low inventory.
“Total sales declined due to limited liquidity to procure inventory to drive third-party sales,” Splash Beverage Group said in an SEC filing for the quarter, which ran to the end of June.
