Innovation Beverage Soars On Potential Merger With Blockfuel Energy Here's An Important Development On Reverse Stock Split

Innovation Beverage Group (IBG) shares more than doubled in early trading on Tuesday after the company announced it has entered into a non-binding letter of intent for a merger with BlockFuel Energy.

BlockFuel combines oil and gas exploration with power generation to support bitcoin mining operations and high-performance data centers in North America. Innovation Beverage, on the other hand, is a developer, manufacturer, and marketer of a beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands.

Retail sentiment on Innovation Beverage improved to 'extremely bullish' from 'bullish' territory a day ago, with message volumes at 'extremely high' levels, according to data from Stocktwits.

Innovation Beverage said that the letter of intent outlines its acquisition of BlockFuel through a transaction structured as a reverse triangular merger. This would happen through a newly formed subsidiary of Innovation Beverage merging with and into BlockFuel, with the oil and gas exploration company as the surviving entity.

The post-transaction combined company resulting from the merger is expected to have an equity valuation range of approximately $220 million to $343 million. After the merger, Innovation Beverage shareholders will own 10% of the combined company, which will give the beverage firm an estimated value of $22 million to $34.3 million, up from its previous valuation of $2.9 million to $6.3 million.

Innovation Beverage stated that upon closing, it is expected that Daniel Joseph Lanskey, currently President and CEO of BlockFuel and a director at the beverage company, will be appointed CEO of Innovation Beverage.

The company announced that Sahil Beri, currently CEO of Innovation Beverage, will be appointed President of a newly formed Australian beverage subsidiary.

Separately, Innovation Beverage announced that it will conduct a five-for-one reverse stock split of its ordinary shares, effective Sept. 26, 2025. The shares will begin trading on a split-adjusted basis when the market opens on that day.

Shares of Innovative Beverage have declined nearly 34% in the last 12 months.

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