Splash Beverage Group Inc (NYSE:SBEV) shares plunged more than 30% to $1.34 last Friday morning after the company announced the pricing of a $3.1 million public offering of 2 million shares of common stock at $1.55 per share. Robert Nistico, Splash Beverage Group’s Chairman and CEO, commented, “This capital raise is to ensure we have sufficient inventory to fill orders and support the significant gains in distribution and chain retail authorizations for all our brands. We have announced numerous distribution and retail chain agreements recently, and it is critical to have sufficient inventory to support this activity, Additionally, it is imperative we do not run out of stock at this inflection point as our brands accelerate at retail, and we continue to add chains retail business … this is a very exciting time for us”
So why could a bounce back be imminent on stock prices of SBEV? Based on the recent press releases, SBEV seems to be firing on all cylinders. To begin with, currently, there are four brands in SBEV’s portfolio today; TapouT Performance Drink, Copa di Vino single-serve wine, Pulpoloco Sangria, and SALT Tequila are all demonstrating strong growth potential within the Splash platform.
On Sep 22nd, SBEV announced an agreement with Missouri-based Lohr Distributing to distribute all Splash Beverage Group brands throughout the state of Missouri. As per the press release, Nistico, Splash Beverage Group’s Chairman added, “Remember, every time we sign a distribution deal or retail chain, we add revenue”
Earlier on Sep 20th, SBEV announced it has received authorization to sell its TapouT performance drink in select Target stores across the nation. Robert Nistico, Splash Beverage Group’s Chairman and CEO commented, “Target is an iconic premium retailer and one of the most visible retail brands in the nation with stores in all 50 states and the District of Columbia. 75% of the population in the U.S. lives within 10 miles of Target stores and we will now have an opportunity to offer TapouT to these customers. This is a very exciting new relationship and we’re grateful and proud to have earned this authorization from such an important retailer.”
Even better, On August 15th, 2022 Splash Beverage Group, Inc. (NYSE: SBEV) reported financial results for the second quarter period ended June 30, 2022. SBEV recorded gross sales for the second quarter were $4.8 million compared to $3.4 million in the prior year period, an increase of 41% over the prior year period. The increase in revenue was primarily due to increased sales of TapouT and e-commerce sales.
All the recent press releases strongly build the case for growth for SBEV and one can potentially expect SBEV to get even better through a development and acquisition strategy that capitalizes on opportunities and maximizes the value inherent to them. Thus, the recent drop in stock prices of SBEV may provide a window of investment opportunity to those looking for fast-growing well-managed companies penetrating high-dollar markets.
Some of the other notable stocks to watch in the current bearish market include ATXI, PXMD, and ILAG
Avenue Therapeutics Inc (NASDAQ:ATXI) traded at $8.73+5.21 (+148.01%) at 12:30 EST. Avenue Therapeutics Inc (NASDAQ: ATXI) received the official meeting minutes from the FDA regarding a meeting conducted for IV Tramadol in combination with other opioid analgesics to manage moderate-to-moderately severe pain. The FDA stated that the proposed study design appears reasonable and agreed with the expectation that additional feedback would be provided to Avenue upon review of a more detailed study protocol.
PaxMedica, Inc. (NASDAQ:PXMD) traded at $2.9250 +0.7550 (+34.7926%) at 12:30 EST on Tuesday. More than 7.7M million shares had exchanged hands. PaxMedica, Inc. (Nasdaq: PXMD), is a clinical-stage biopharmaceutical company that focuses on developing anti-purinergic drug therapies for treating disorders with intractable neurologic symptoms. The Company had recently announced the pricing of its initial public offering of 1,545,454 shares of its common stock at a public price of $5.25 per share. The gross proceeds to PaxMedica from the offering, before deducting underwriting discounts, commissions, and offering expenses, are expected to be approximately $8.1 million. All of the shares are being offered by PaxMedica. In addition, PaxMedica has granted the underwriters a 45-day option to purchase an additional 231,818 shares of its common stock at the initial public offering price, less underwriting discounts and commissions.
Intelligent Living Application Group Inc. (NASDAQ: ILAG) was another small-cap stock that was up 22% on Tuesday morning. We did not notice any recent news from the Company. However, earlier in July, the Company had announced closing its initial public offering of 5,060,000 ordinary shares at a price of $4.00 per share.
Overall, it looks like investors are believing that an aggressive Fed will keep the stock market down for the rest of 2022. However, every now and then there will be certain stocks that will offer the "Buy the Dip" opportunity and SBEV could be one of them.
Video Link: https://www.youtube.com/embed/5JSuVHfcv4E
References: All information pertaining to SBEV was obtained from the press releases published under the company profile page at https://finance.yahoo.com/quote/SBEV?p=SBEV&.tsrc=fin-srch and the company's website at https://splashbeveragegroup.com/
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