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 as it evolves into a growth-oriented public platform focused on cannabinoid wellness, regulated consumer health, and scalable brand development.
The proposed combination aims to drive category leadership in the emerging cannabinoid wellness market by leveraging operational scale, access to public markets, and a disciplined growth strategy. Medterra brings an established operating infrastructure, a strong brand portfolio with millions of customers served, and a proven management team. During fiscal year 2025, Medterra generated over $52 million in revenue and was profitable, demonstrating its operational capabilities.
Management from both companies emphasized the strategic importance of the timing. Brady Cobb, a Board Member of Splash Beverage Group, stated that the industry is approaching a period of significant growth driven by regulatory progress, increasing consumer adoption, and institutional engagement. J.P. Larsen, Founder and Managing Member of Medterra, noted that partnering with Splash provides the resources and capital markets access to scale the platform as the industry enters a new era of legitimacy and growth driven by federal reform.
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, directed by an executive order signed on December 16, 2025. The order also included a cannabinoid pilot initiative for CBD being evaluated by the Centers for Medicare & Medicaid Services. These initiatives are designed to assess structured pathways for physician-recommended, federally compliant hemp-derived CBD products within regulated healthcare frameworks, including potential federal reimbursement models.
Industry participants suggest that structured reimbursement pathways could significantly expand the total addressable market opportunity. Some operators reference a potential U.S. market exceeding $30 billion should federal reform and reimbursement frameworks advance. Management believes the proposed combination positions the company to evaluate participation in these emerging healthcare channels. Medterra has served millions of customers and has developed a portfolio of science-driven formulations, some already registered with the federal government.
The companies also plan to participate in a CBD pilot initiative under evaluation by CMS, which could represent a meaningful long-term growth opportunity. Scaled, compliance-focused operators with documented product quality standards and consumer usage data could be well-positioned as regulatory frameworks mature.
Subject to completion, 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 with additional details. The proposed transaction is subject to the execution of definitive agreements and shareholder approvals as required by the NYSE American Exchange. More information about Splash Beverage Group can be found at https://splashbeveragegroup.com, and details on Medterra are available at https://medterracbd.com.
