Innovation Beverage To Merge With BlockFuel Through Reverse Triangular Merger

Innovation Beverage Group

3.69 USD -9.56%

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(RTTNews) - Innovation Beverage (IBG) has entered into a definitive agreement for a reverse triangular merger transaction with BlockFuel Energy. IBG and BFE expect to close the transaction in the fourth quarter of 2025, and will trade on the Nasdaq under the ticker FUEL.

IBG will merge with BlockFuel through a reverse triangular merger, with a newly formed subsidiary of IBG formed for the transaction merging with and into BFE, with BFE as the surviving entity and becoming a wholly owned subsidiary. When the transaction closes, the owners of BFE are expected to own ordinary shares in IBG representing 90% of the total number of issued and outstanding ordinary shares of IBG on a post-transaction basis. Shareholders of IBG will own 10% of the combined entity upon closing, equaling an implied post-transaction equity value for IBG in the range of $22 million to $34.3 million, compared to a pre-transaction valuation of $2.9 million to $6.3 million.

Daniel Lanskey, President and CEO of BlockFuel and a Director of IBG, will be appointed Chairman of the Board and CEO of the new combined entity. Sahil Beri, Chairman of the Board and CEO of IBG, will resign from both positions and will be appointed as President of a newly formed beverage subsidiary.

Shares of Innovation Beverage are up 45% in pre-market trade on Wednesday.