The growth wave appears to be alive and kicking at Splash Beverage Group Inc (OTCMKTS:SBEV), which has been a promising under-the-radar story for deep-divers in the OTC space since the summertime merger that put the beverage name into play for public equity investors, market participants, and traders.
It may now be ready for primetime after posting very strong growth metrics in its latest performance update.
For a bit of background, SBEV is a holding company building a leading portfolio of beverage brands in both the spirits and fitness products markets that is engaged in marketing and distributing naturally flavored tequilas under the “SALT” brand as well as performance-enhancing drinks under the “TapouT” brand, which reportedly contain a proprietary blend of essential vitamins, minerals and electrolytes.
We have noted this stock recently as it improves its story and positioning, particularly given its recent move to expand into the massive Asian market through a major distribution deal. Now, it looks like the rubber is starting to meet the road in a manner that may pay off for its stakeholders.
Proof, Meet Pudding
The most recent factor suggesting the promise we point to here is the company’s press release kicking off this week, which noted performance data for the three months ended September 30, 2020, featuring “very strong sequential topline quarterly growth, revenues in excess of Company estimates, and growth in liquidity and capital resources, as Splash Beverage Group Inc (OTCMKTS:SBEV) continues to establish robust trends in its expanding core operations.”
According to the release, consolidated Revenues for the Three Months ended September 30 totaled $1,009,615, representing quarter-over-quarter growth of 65% compared to the Three Months ended June 30, consolidated Revenues for the Nine Months ended September 30 totaled $1,733,926, the Company surpassed its estimated topline performance during Q3, management forecasts $1.3-1.5 million in current quarter revenues for the three months ending December 31, 2020, and the fact that the Company also negotiated a Subscription Agreement pursuant to which the Company received gross proceeds of $3,070,000.
“Our Q3 data highlights significant growth during the quarter, with an impactful increase in revenues, liquidity, and capital resources, as well as the successful navigation of challenges associated with the pandemic health crisis,” commented Robert Nistico, CEO of Splash Beverage. “Looking ahead, we see continue to see growth in the neighborhood of 30-50% on a sequential quarterly basis as our core metrics benefit from our strong brand positioning and we begin to see tailwinds associated with our expansion into the Asian marketplace.”
We would also note that these results surpass what seemed like aggressive projections from the company last quarter when management looked ahead and said it would make “between $750,000 to $1,000,000 for the three months ended September 30, 2020.”
That seemed like a moonshot to juice the stock, frankly. Even though the upside here is likely considerably bigger even over the short-term, we would have assumed that early-stage upside shock in performance to be a bit of an over-reach. And yet, here we are, with the company beating the number and posting better than the $1 million line for the topline data point.
Rising Confidence
We would also note that Splash Beverage Group Inc (OTCMKTS:SBEV) has been productive in solidifying its capital foundation in recent months, with the company noting in its release that it secured, between June 19, 2020, and October 16, 2020, a Subscription Agreement to receive gross proceeds of over $3 million in return for the issuance of well under 3 million shares of the Company’s common stock and a warrant allowing for the purchase of an additional 1,395,455 shares of the Company’s common stock.
That move will help to fund additional expansion and a continued drive to surprise the skeptics and unlock the value that its underlying assets imply.
“We are very happy with the progress the Company has made this year in the face of significant headwinds,” added Nistico. “I am confident we are well positioned for exponential growth in our expanding portfolio of beverage brands and concepts, moving us toward increasing access to new market opportunities, including potential acquisitions, as we continue to strive for broad shareholder value generation.”
