Innovation Beverage Group Ltd. (IBG) and BlockFuel Energy Inc. have advanced their proposed reverse merger by completing several key milestones that underscore the strategic pivot from a beverage company to a vertically integrated energy and digital‑asset platform.
The two companies closed a purchase of 46 oil and gas wells and eight saltwater disposal wells in Oklahoma for $12.5 million, of which $3.7 million will be paid in IBG common stock. BlockFuel now holds an approximately 86% working interest and a 70% net revenue interest in the 30,000‑acre portfolio, and the wells are already producing oil sales that will provide immediate cash flow to support the combined entity’s energy‑backed digital infrastructure plans.
A binding memorandum of understanding was signed with Greenbelt Industries LLC to build a digital‑asset mining facility in Sharjah, United Arab Emirates. The joint venture will be 50.75% owned by Greenbelt and 49.25% by BlockFuel; BlockFuel will install and operate ASIC mining equipment while Greenbelt supplies power and regulatory licenses, expanding the combined company’s international footprint.
BlockFuel completed a $2 million equity financing led by Aegis Capital Corp. The capital will accelerate natural‑gas‑to‑power and mining initiatives. The $3.7 million share payment for the Oklahoma assets will be issued on or before April 1, 2026 at a 15% discount to the five‑day volume‑weighted average price, providing working capital while managing dilution.
The merger will create a new public company that will trade under the ticker “FUEL” on Nasdaq once approval is obtained. The transaction represents a fundamental shift for IBG, moving away from beverage development toward a diversified energy and digital‑asset platform that leverages BlockFuel’s vertical integration strategy.
Sahil Beri, CEO of IBG, said the progress “demonstrates the momentum behind our transition to a platform that combines energy production with digital infrastructure.” Daniel Lanskey, CEO of BlockFuel, added that the Oklahoma acquisition and UAE joint venture “strengthen our ability to generate power from natural gas and deploy it to high‑value mining operations.”
Investors have responded with a mix of enthusiasm for the strategic expansion and caution over the share‑based payment and equity raise, which introduce dilution. The overall sentiment reflects confidence in the long‑term value creation potential while acknowledging short‑term capital structure impacts.
The combined company is expected to close the merger by the end of Q1 2026, pending Nasdaq approval. The next steps include finalizing the share issuance schedule, completing regulatory filings, and integrating the Oklahoma assets and UAE joint venture into the new entity’s operations.
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