Splash Beverage shares surge 12.64% after-hours after signing LOI to merge with Medterra CBD, pivoting to cannabinoid wellness.

Splash Beverage Group surged 12.64% in after-hours trading following the announcement of a non-binding letter of intent to merge with Medterra CBD, a hemp-derived cannabinoid wellness company. The proposed deal, described as a “transformative step” by Splash, aims to reposition the firm as a public cannabinoid wellness platform. Medterra’s reported $52 million in fiscal 2025 revenue and its established product portfolio, including CBD gummies and tinctures, underscore the strategic shift toward federally compliant cannabinoid products. The move aligns with recent regulatory developments, including President Trump’s executive order to reclassify medical marijuana, which could expand market opportunities for hemp-derived goods. Splash highlighted the transaction’s potential to leverage growing institutional interest in the sector and its participation in a Centers for Medicare & Medicaid Services CBD pilot initiative. The merger, if finalized, would mark a significant pivot from its traditional beverage business, reflecting optimism about the cannabinoid wellness market’s growth prospects.