SBEV Stock Tumbles Over 35% In Pre-Market Today — A Look At Its Latest Deal With Argent BioPharma

• CannEpil is a patent-protected cannabinoid-based investigational therapeutic approved for the treatment of drug-resistant epilepsy in multiple European countries.
• Splash stated that it has secured a $1 million investment commitment from C/M Capital Partners.
• Splash has also agreed to issue $5.5 million of newly issued Splash preferred equity.

Shares of Splash Beverage Group, Inc. (SBEV) were in the limelight on Tuesday after it announced an exclusive global licensing agreement with Argent BioPharma for its proprietary, patent-protected cannabinoid-based investigational therapeutic approved for the treatment of drug-resistant epilepsy in multiple European countries.

CannEpil has been approved for distribution in various markets, including Ireland, the United Kingdom, Germany, and Australia.

Splash stated that it has secured a $1 million investment commitment from C/M Capital Partners “to support regulatory advancement, clinical development planning, commercialization initiatives and strategic partnership activities” aimed at accelerating the development of CannEpil in the United States and other markets.

SBEV stock was down over 35% in Tuesday’s pre-market.

Contours Of The Deal

As per the agreement, apart from the $1 million commitment, Splash has also agreed to issue $5.5 million of newly issued Splash preferred equity. Meanwhile, Mercer Street Global Opportunity Fund has agreed to forgive nearly $5 million of Argent BioPharma's indebtedness.

At the same time, Argent BioPharma would receive a royalty equal to 15% of net revenue generated from worldwide sales of CannEpil.

The firm noted that the agreement grants it exclusive worldwide commercialization rights for an initial 20-year term and provides the right to sublicense the technology to strategic pharmaceutical partners globally.

Brady Cobb, Interim Chief Executive Officer of Splash Beverage Group, noted that global rights to CannEpil provide the firm with a unique opportunity to participate in one of the most attractive specialty neurology markets in healthcare.

“We believe the combination of existing international utilization, regulatory progress and the significant unmet need in drug-resistant epilepsy creates a compelling opportunity to substantially build revenue and long-term shareholder value,” he stated.

SBEV’s Investment In Avicanna

Last month, the company completed its strategic investment in Avicanna, a commercial-stage cannabinoid-based biopharmaceutical company focused on clinical research, patient care, and the development of pharmaceutical products.

The firm had highlighted that Avicanna has assembled one of the most sophisticated cannabinoid healthcare platforms operating in the current times and “is uniquely positioned for the continued evolution of the medical cannabinoid market in the United States.”

What Retail Thinks Of SBEV

Retail sentiment around SBEV turned ‘Extremely Bullish’ from ‘Bearish’ a day ago.

On a year-to-date basis, the stock has lost over 70%.

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