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.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Why Is Kenvue Stock Rising Today?