Splash Beverage Group Completes Strategic Investment in Avicanna, Transforms into Cannabinoid Healthcare

FORT LAUDERDALE – Splash Beverage Group Inc. announced the completion of a CDN$300,000 (~USD$217,479) minority investment in Avicanna Inc., a commercial-stage international biopharmaceutical company headquartered in Toronto, Canada. The transaction involved Splash acquiring 2,000,000 common shares and 1,000,000 warrants through a non-brokered private placement. The deal marks a decisive step in Splash’s exit from the consumer beverage business and its repositioning as a cannabinoid health and wellness holding company.

The investment follows a turbulent stretch for Splash. The company has reported no revenue since March 2025 due to capital constraints, carries an accumulated deficit of $155.8 million, and posted a net loss of $23.8 million for FY 2024 – a balance sheet that frames this non-brokered private placement as strategically large relative to the company’s firepower.

Splash also disclosed that its 2025 audited financials carry a going-concern warning and that a non-binding Letter of Intent with Medterra CBD expired in May 2026 without a definitive agreement — context that investors should weigh alongside the Avicanna announcement.

Avicanna presents a contrasting financial profile. The company posted C$25.48 million in full-year 2025 revenue [essentially flat year-over-year] but meaningfully narrowed its net loss to C$2.76 million, a roughly 40% improvement from 2024. Avicanna also achieved a 53% gross margin and near break-even adjusted EBITDA for the year, and has expanded into 24 international markets. Those are meaningful indicators of a maturing commercial operation.

Avicanna reported positive adjusted EBITDA in Q4 2025, which, if sustained into 2026, would mark a genuine inflection in profitability, not a headline milestone but an operational one.

For Splash, the warrants acquired alongside the shares provide upside optionality if Avicanna’s U.S. market entry gains traction. Interim CEO Brady Cobb framed the investment as alignment with a company that has already built within a federally regulated medical cannabinoid framework – a structure increasingly relevant to U.S. healthcare policy discussions.

Alongside the investment, Splash’s board approved a Strategic Transformation RSU Plan equal to 20% of fully diluted shares outstanding [approximately 8,373,000 shares] with vesting tied directly to closing a strategic transaction and regaining NYSE listing compliance. Interim CEO Brady Cobb received 925,000 options and new COO Michael Bondurant received 800,000 options, both at $0.25 per share under 10-year grants.

This transaction is less a capital event than a directional one. Avicanna brings genuine pharmaceutical infrastructure [clinical data, a 53% gross margin, and multi-market reach] that Splash currently lacks entirely. The CDN$300,000 stake is modest by any measure, but management’s stated intent to pursue deeper transactions with Avicanna suggests this is a positioning play, not a terminal move. For investors, the relevant question is not whether the Avicanna asset is credible, it is, but whether Splash has sufficient runway and NYSE standing to execute a larger deal before its capital situation forecloses the option. In cannabinoid pharmaceuticals, strategic optionality and financial viability must move together. Right now, for Splash, one is stronger than the other.