Splash Beverage Group has marked its expansion into the hemp-THC drinks category through a new joint venture with BAAD Ventures, the owner of Nimbus THC flavoured seltzers.

According to a statement on the New York stock exchange, under the terms of the new joint venture, Splash will hold a 51% ownership interest in the JV, with BAAD owning 49%.

It comes as US Congress and President Trump recently passed a funding bill that is set to tighten restrictions on sales of hemp-THC drinks in the country.

The bill states that “hemp-derived cannabinoid products” with THC content exceeding 0.3% will no longer be permitted for sale, nor any “final” hemp-based cannabinoid goods with more than 0.4mg of THC per container.

Baad Ventures owns the brand Nimbus, a 10mg hemp-derived THC flavoured seltzer that has delivered “exceptional early performance across multiple retail formats", the stock exchange filing said.

The move comes after more than three months of work between both companies and combines “complementary strengths to accelerate growth in one of the most dynamic segments in the beverage industry”.

Nimbus is now positioned for “rapid multi-state expansion” because of the partnership and is the first of several “anticipated assets” within the new joint venture, the statement said.

The expansion will bring the product into six additional states in the US. Just Drinks has contacted Splash Beverage Group to provide further detail.

BAAD said: “Nimbus exceeded expectations from day one. It was clear we had a brand with significant potential, and partnering with Splash brings the scale and category expertise needed to unlock its next phase of growth."

Through the JV, Florida-based drinks firm Splash Beverage is expected to bring “brand-building expertise, established distribution networks” and “proven beverage-innovation capabilities” to the venture.

Together, Splash and BAAS plan to build "a vertically integrated platform", which looks to “expand supply-chain efficiencies” as well as strengthen manufacturing capabilities.

William Meissner, president and chief marketing officer at Splash said: "The THC beverage category is expanding at an extraordinary speed, and this partnership with the team at Nimbus and BAAD puts us meaningfully ahead of the curve.”

He added: "Nimbus is a standout trademark, light, airy, and evocative of the product's core functional benefit.

"It's already a top performer in its launch markets, and we see significant room for innovation and portfolio expansion under the Nimbus banner.”

Earlier this month, Robert Nistico, the founder, CEO and chairman of Splash Beverage Group has resigned from his executive positions at the company.  

However, Nistico will remain on the board, “collaborating on special projects within the beverage sector”, Splash Beverage added.