Innovation Beverage Group Ltd (Nasdaq: IBG) announced on October 16, 2025 that it has entered into a definitive reverse triangular merger agreement with Texas‑based BlockFuel Energy Inc. (BFE). The transaction will see a newly formed IBG subsidiary merge into BFE, making BFE the surviving entity and a wholly owned subsidiary of the combined company.
The parties expect the merger to close in the fourth quarter of 2025, subject to customary closing conditions. Upon completion, BlockFuel shareholders will own approximately 90% of the combined entity’s ordinary shares, while IBG shareholders will hold about 10%. The post‑merger equity valuation is projected to range between US$220 million and US$343 million, a substantial increase from IBG’s pre‑transaction market cap of roughly US$2.9 million to US$6.3 million.
Leadership changes accompany the deal: Daniel Lanskey, current President and CEO of BlockFuel and a director of IBG, will become Chairman and CEO of the new combined entity. Sahil Beri, IBG’s current CEO and Chairman, will resign from those positions and will be appointed President of a newly formed beverage subsidiary within the group.
The merger marks a strategic pivot for IBG, shifting its focus from beverage development and marketing to the energy and digital‑asset sectors. BlockFuel’s technology—converting stranded or flared natural gas into power for bitcoin mining and high‑performance data centers—provides a new competitive moat, positioning the combined company to capitalize on growing demand for cleaner energy solutions in the cryptocurrency and data‑center markets.
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