Innovation Beverage Group Provides Business Update Highlighting Energy Expansion and Proposed Merger with BlockFuel Energy

Rhea-AI Summary

Innovation Beverage Group (Nasdaq: IBG) provided a business update on Jan 20, 2026, describing progress toward its proposed merger with BlockFuel Energy and several energy initiatives tied to the transaction.

Key items: BlockFuel closed a $12.5M acquisition of Oklahoma oil and gas assets (46 horizontal wells, 8 SWD wells across ~30,000 acres) with ~86% working interest and ~70% net revenue interest; initial oil sales and production restoration are underway. BlockFuel plans up to ~6 MW modular gas-fired generation and capacity to mine ~4.5 bitcoin/month. A UAE JV MOU with Greenbelt splits ownership 50.75%/49.25%. Aegis-led equity financing provided $2.0M. The merger is expected to close by end of Q1 2026 pending Nasdaq approval.

Positive

• Acquisition of Oklahoma assets for $12.5M
• Majority working interest of ~86% and net revenue interest of ~70%
• Equity financing of $2.0M from Aegis Capital
• Planned on-site generation of up to 6 MW and potential to mine ~4.5 BTC/month
• UAE JV MOU with Greenbelt establishing 49.25% BlockFuel stake in Sharjah project

Negative

• Aggregate purchase includes $3.7M payable in shares to be issued by Apr 1, 2026 at a 15% discount
• Merger closing remains subject to Nasdaq listing approval and customary conditions
• Financing and certain transaction details are subject to future disclosure and customary contingencies

Market Reaction

-40.15% $0.93 2.3x vol

15m delay 16 alerts

-40.15% Since News

-3.8% Trough in 1 hr 55 min

$0.93 Last Price

$0.85 $1.00 Day Range

-$2M Valuation Impact

$3M Market Cap

2.3x Rel. Volume

Following this news, IBG has declined 40.15%, reflecting a significant negative market reaction. Argus tracked a trough of -3.8% from its starting point during tracking. Our momentum scanner has triggered 16 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $0.93. This price movement has removed approximately $2M from the company's valuation. Trading volume is elevated at 2.3x the average, suggesting increased selling activity.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Oklahoma asset price: $12.5 million Horizontal wells acquired: 46 wells Saltwater disposal wells: 8 wells +5 more

8 metrics

Oklahoma asset price $12.5 million Aggregate purchase price for Oklahoma oil and gas assets

Horizontal wells acquired 46 wells Previously producing horizontal oil and gas wells in Oklahoma portfolio

Saltwater disposal wells 8 wells Saltwater disposal wells with surface facilities in Oklahoma assets

Generation capacity 6 megawatts Planned modular natural gas–fueled power capacity at well sites

Bitcoin mining capacity 4.5 bitcoin/month Estimated mining capacity supported by on-site power generation

Equity financing $2.0 million Working capital financing led by Aegis Capital for BlockFuel

ATM program size $2,500,000 Ordinary shares to be sold under at-the-market program via Aegis

Shelf registration size $10,000,000 Maximum amount of securities under IBG’s F-3 shelf

Market Reality Check

Price: $1.55 Vol: Volume 15,201 is well bel...

low vol

$1.55 Last Close

Volume Volume 15,201 is well below the 20-day average of 63,064, suggesting limited pre-news positioning. low

Technical Shares at $1.71 are trading below the 200-day MA of $2.98 and far under the $9.85 52-week high.

Peers on Argus

IBG was flat pre-announcement while at least one peer, SBEV, appeared in momentu...

1 Up

IBG was flat pre-announcement while at least one peer, SBEV, appeared in momentum scanners moving up, indicating no clear sector-wide move tied to this news.

Historical Context

3 past events · Latest: Oct 15 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Oct 15	Definitive merger deal	Positive	+25.2%	Announced definitive reverse triangular merger terms and post-merger valuation range.
Sep 23	Merger LOI signed	Positive	+105.1%	Entered non-binding LOI for merger combining beverages with energy and bitcoin mining.
Sep 23	Reverse stock split	Neutral	+105.1%	Announced 5-for-1 reverse split following Nasdaq minimum bid price deficiency notice.

Pattern Detected

Prior BlockFuel-related merger headlines tagged as acquisitions were followed by strong positive price reactions, suggesting these transaction updates have been meaningful catalysts historically.

Recent Company History

Over recent months, IBG has focused on structural and strategic changes. On Sep 23, 2025, it announced a letter of intent for a reverse triangular merger with BlockFuel, followed by a reverse stock split effective Sep 26, 2025 to address Nasdaq compliance. On Oct 15, 2025, IBG entered a definitive merger agreement with BlockFuel, outlining a combined entity trading as FUEL. Today’s update adds detailed progress on BlockFuel’s assets, financing and the merger timeline toward Q1 2026 closing.

Regulatory & Risk Context

Active S-3 Shelf · $10,000,000

Shelf Active

Active S-3 Shelf Registration 2025-12-29

$10,000,000 registered capacity

IBG has an effective F-3 shelf filed on Dec 29, 2025 allowing issuance of up to $10,000,000 in securities, already tapped via a Jan 14, 2026 424B5 at-the-market program of up to $2,500,000, which the prospectus notes could dilute existing holders and pressure the share price.

Market Pulse Summary

The stock is dropping -40.1% following this news. A negative reaction despite operational progress w...

Analysis

The stock is dropping -40.1% following this news. A negative reaction despite operational progress would fit a market focus on dilution risk and execution uncertainty. The Oklahoma acquisition involves cash and stock consideration, while an effective $10,000,000 shelf and $2,500,000 ATM provide additional issuance capacity. Past merger headlines triggered strong gains, so weakness following this update could reflect concerns about integration complexity, regulatory approvals, and capital structure pressure.

Key Terms

digital asset mining, working interest, volume-weighted average price, memorandum of understanding, +1 more

5 terms

digital asset mining technical

"to integrate on-site natural gas–fueled power generation with digital asset mining operations"

Digital asset mining is the process of using specialized computer hardware and software to create or validate digital tokens and keep decentralized ledgers running, most commonly for cryptocurrencies. It matters to investors because mining is how new tokens enter circulation and how networks stay secure, and the activity directly affects a firm’s revenue, costs (power and equipment), and exposure to price swings, regulatory changes, and environmental scrutiny — like running a factory that converts electricity into sellable goods.

working interest financial

"BlockFuel Energy now owning the majority working interest (~86%) and net revenue interest"

The working interest is the percentage ownership one party holds in an oil or gas lease that gives them the right to a share of production and also the obligation to pay a proportional share of exploration, development and operating costs. Think of it like owning a slice of a cake but also agreeing to pay part of the bill to bake it: a larger working interest means bigger potential revenue when wells produce, but also larger exposure to costs and liabilities if things go wrong.

volume-weighted average price financial

"at a price equal to a 15% discount to the five-day volume-weighted average price"

Volume-weighted average price (VWAP) is the average price of a stock over a specific time period where each trade is weighted by the number of shares traded, so larger trades influence the average more than small ones. Investors and traders use VWAP as a reference point to judge whether trades are happening at relatively good or poor prices—like checking the average price paid for an item at a market where bulk purchases count more than single-item buys.

memorandum of understanding regulatory

"has entered a binding memorandum of understanding with Greenbelt Industries LLC"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

joint venture financial

"The parties intend to form a three-year project-specific joint venture combining Greenbelt’s"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

AI-generated analysis. Not financial advice.

Oklahoma energy asset acquisition, UAE digital asset mining MOU with Greenbelt Industries, and equity financing from Aegis Capital advance integrated energy and infrastructure strategy

IBG and BlockFuel continue to progress toward completion of previously announced merger, expected to close by end of Q1 2026 pending Nasdaq listing approval

SYDNEY, Jan. 20, 2026 (GLOBE NEWSWIRE) -- Innovation Beverage Group Ltd (“IBG” or “the Company”) (Nasdaq: IBG), an innovative developer, manufacturer, and marketer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands, today provided a business update highlighting progress across several strategic initiatives tied to its proposed merger with BlockFuel Energy Inc. (“BlockFuel”). These developments include energy asset acquisitions, international digital infrastructure development, financing activity, and merger-related milestones.

“Today’s business update reflects continued momentum as we work toward completing our proposed combination with BlockFuel Energy,” said Sahil Beri, Chief Executive Officer of Innovation Beverage Group. “We believe the recent operational and strategic developments at BlockFuel underscore the opportunity to create a publicly traded platform with exposure to energy production and digital infrastructure. We remain focused on navigating the remaining regulatory and closing steps to finalize the transaction.”

“Over the past several months, we have made meaningful progress executing on our strategy across energy production, power infrastructure and digital asset development,” said Daniel Lanskey, Chief Executive Officer of BlockFuel Energy. “The completion of the Oklahoma asset acquisition and the signing of our joint venture MOU in the UAE reflect our focus on building a diversified, vertically integrated energy platform as we advance toward the completion of our proposed merger with Innovation Beverage Group.”

Acquisition of Oil and Gas Production Assets in Oklahoma
BlockFuel has completed the acquisition of oil and gas production assets located in the state of Oklahoma, marking a key step in the execution of its vertically integrated energy strategy. The acquired portfolio includes forty-six (46) previously producing horizontal oil and gas wells and eight (8) saltwater disposal wells with surface facilities. The wells are situated across approximately 30,000 acres, with BlockFuel Energy now owning the majority working interest (~86%) and net revenue interest (~70%) in the wells.

The aggregate purchase price was $12.5 million, comprised of cash paid at closing, seller-financed considerations payable under an amortized note bearing interest, and $3.7 million payable in shares of the Company’s common stock. The shares are to be issued on or before April 1, 2026, at a price equal to a 15% discount to the five-day volume-weighted average price prior to issuance.

Following the closing on December 24, 2025, BlockFuel assumed operational control of the oil field assets on December 26 and initiated the process of restoring production. Initial oil sales are underway, and assets generated from these sales are expected to play an important role in supporting BlockFuel’s energy-backed digital infrastructure initiatives while generating near-term operational activity.

An update on production and well status will be made at the end of February 2026.

Natural Gas Power Generation and Launch of Digital Asset Mining Initiative in Oklahoma
BlockFuel has started planning and initial deployment activities are underway to integrate on-site natural gas–fueled power generation with digital asset mining operations across BlockFuel’s Oklahoma asset base. As natural gas production is progressively brought back online, BlockFuel is evaluating the phased commissioning of approximately 6 megawatts of modular generation capacity at select well sites.

This infrastructure is designed to utilize associated natural gas at the wellhead - including stranded, flared, and saleable gas - to support the development of energy-backed digital infrastructure alongside ongoing oil and natural gas liquids production. BlockFuel believes this strategy has the potential to enhance revenue and improve asset-level economics by monetizing natural gas through on-site power generation, with the capacity to mine up to approximately 4.5 bitcoin per month.

Joint Venture MOU with Greenbelt Industries for UAE Digital Asset Mining Project
BlockFuel has entered a binding memorandum of understanding with Greenbelt Industries LLC, a UAE-based energy generation company with proprietary biofuel manufacturing technology and integrated core production plants, to develop and operate a digital asset mining facility in Sharjah, United Arab Emirates.

The parties intend to form a three-year project-specific joint venture combining Greenbelt’s regulatory licenses, infrastructure, and biofuel-based power generation systems with BlockFuel’s ASIC mining equipment and operational expertise. The project is designed to deliver scalable, energy-efficient and fully compliant digital asset mining operations in the Middle East.

Ownership of the joint venture will be split 50.75% to Greenbelt and 49.25% to BlockFuel, with shared governance through a six-member board of directors. Per the agreement, BlockFuel will be responsible for installation, commission and maintenance of all mining equipment and operations at the site, while Greenbelt will manage business administration and provide power supply and generation services.

Equity Financing Activity with Aegis Capital Corp.
BlockFuel has completed an equity financing led by Aegis Capital Corp., providing $2.0 million in working capital to support near-term operational and strategic initiatives. Proceeds are expected to be used primarily to advance BlockFuel’s energy operations and broader corporate objectives.

The Company notes that certain aspects of the financing are subject to customary disclosure considerations, and additional details will be provided as appropriate and in accordance with applicable securities regulations.

Update on Proposed Merger with BlockFuel Energy
IBG and BlockFuel continue to advance toward completion of their previously announced merger, which is expected to result in BlockFuel Energy becoming the operating business of the combined public company listed on the Nasdaq under the ticker symbol “FUEL”. The transaction is expected to close by the end of the first quarter of 2026.

The proposed transaction remains subject to customary closing conditions, including approval from Nasdaq on the listing application of the combined public company. Both companies continue to work collaboratively with advisors and regulators to complete the required processes and advance toward closing. Management believes the combination positions the Company to participate in the intersection of energy production, power generation, and digital infrastructure, while providing IBG shareholders with exposure to a diversified and scalable operating platform.

If you have a question or would like to schedule a meeting with IBG or BlockFuel management, please contact BlockFuel@KCSA.com.

About Innovation Beverage Group
Innovation Beverage Group is a developer, manufacturer, marketer, exporter, and retailer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands for which it owns exclusive manufacturing rights. Focused on premium and super premium brands and market categories where it can disrupt age old brands, IBG’s brands include Australian Bitters, BITTERTALES, Drummerboy Spirits, Twisted Shaker, and more. IBG’s most successful brand to date is Australian Bitters, which is a well-established and favored bitters brand in Australia. Established in 2018, IBG’s headquarters, manufacturing and flavor innovation center are located in Sydney, Australia with a U.S. sales office located in California. For more information visit: https://www.innovationbev.com/

About BlockFuel Energy
BlockFuel Energy is involved in the acquisition, exploration and development of proven oil fields onshore in North America. By turning natural gas at the source, including stranded and flared gas, into a potent resource for the digital era, BlockFuel Energy intends to redefine the energy industry. BlockFuel Energy combines state-of-the-art power generation with oil and gas exploration to power bitcoin mining operations and high-performance data centers. Our vertically integrated concept allows us to use co-location and modular power generation techniques to optimize efficiency and investment returns. Our cutting-edge solutions for energy optimization and extraction will enable us to transform underdeveloped resources into high-margin, scalable, and sustainable revenue streams. For more information visit: https://blockfuelenergy.com/

Forward Looking Statement
This press release contains “forward-looking statements” and “forward-looking information.” These statements include, but are not limited to, statements about the final terms of the potential merger transaction, the structure of such transaction, benefits of the contemplated transaction between IBG and BlockFuel Energy, expected closing conditions and the parties’ ability to complete the transaction, should definitive documentation be reached as well as other statements that are not historical facts. This information and these statements, which can be identified by the fact that they do not relate strictly to historical or current facts, are made as of the date of this press release or as of the date of the effective date of information described in this press release, as applicable.

The forward-looking statements herein relate to predictions, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance (often, but not always, using words or phrases such as “expects,” “anticipates,” “plans,” “projects,” “estimates,” “envisages,” “assumes,” “intends,” “strategy,” “goals,” “objectives” or variations thereof or stating that certain action events or results "may,” “can,” “could,” “would,” “might,” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) and include, without limitation, statements with respect to projected financial targets that the Company is looking to achieve.

All forward-looking statements are based on current beliefs as well as various assumptions made by and information currently available to the Company’s management team. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections, and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Such factors include, among others, (1) delays in finalizing definitive documentation for the contemplated transaction, (2) the risk that definitive documentation will reflect different terms than the non-binding terms described herein, (3) the risk of delays in consummating the contemplated transaction, including as a result of required regulatory and stockholder approvals, which may not be obtained on the expected timeline, or at all, (4) the risk of any event, change or other circumstance that could cause the parties to terminate the transaction prior to closing, (5) disruption to the parties’ businesses as a result of the announcement and pendency of the transaction, including potential distraction of management from current plans and operations of IBG or BlockFuel Energy and the ability of IBG and BlockFuel Energy to retain and hire key personnel, (6) reputational risk and the reaction of each company’s customers, suppliers, employees or other business partners to the transaction, (7) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (8) the outcome of any legal or regulatory proceedings that may be instituted against IBG or BlockFuel Energy related to the transaction or merger agreement, should definitive documentation be executed, (9) the risks associated with third party contracts containing consent and/or other provisions that may be triggered by the contemplated transaction, (10) legislative, regulatory, political, market, economic and other conditions, developments and uncertainties affecting IBG’s or BlockFuel Energy’s businesses; (11) the evolving legal, regulatory and tax regimes under which IBG or BlockFuel Energy operate; (12) any restrictions during the pendency of the contemplated transaction that may impact the parties’ ability to pursue certain business opportunities or strategic transactions; and (13) unpredictability and severity of catastrophic events, including, but not limited to, extreme weather, natural disasters, acts of terrorism or outbreak of war or hostilities. We caution any person reviewing this press release not to place undue reliance on these forward-looking statements as several important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions, and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur.

The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Company or on behalf of the Company except as may be required by law.

Contact:
Innovation Beverage Group Limited
Sahil Beri
CEO
sahil@innovationbev.com 
www.innovationbev.com

BlockFuel Energy Inc.
Daniel Lanskey
President and CEO
dan.lanskey@blockfuelenergy.com 
www.blockfuelenergy.com

Investor Relations:
KCSA Strategic Communications
Phil Carlson, Managing Director
BlockFuel@KCSA.com

FAQ

What assets did BlockFuel acquire in the Oklahoma deal and what was the price for IBG (IBG)?

BlockFuel acquired 46 horizontal wells and 8 saltwater disposal wells across ~30,000 acres for an aggregate purchase price of $12.5M.

How much equity financing did BlockFuel secure and who led it for IBG stakeholders?

BlockFuel completed an equity financing led by Aegis Capital providing $2.0M in working capital.

What is the expected timeline for the IBG and BlockFuel (ticker FUEL) merger to close?

The companies expect the proposed merger to close by the end of Q1 2026, subject to Nasdaq listing approval and customary closing conditions.

What production and energy infrastructure plans did BlockFuel announce for the Oklahoma assets?

BlockFuel plans phased commissioning of up to 6 MW of modular gas-fired generation at select sites to monetize associated gas and support digital asset mining.

What are the terms of the UAE joint venture MOU with Greenbelt for digital asset mining?

The MOU contemplates a three-year JV in Sharjah with ownership split 50.75% Greenbelt / 49.25% BlockFuel, where BlockFuel supplies mining equipment and operations and Greenbelt provides power and administration.

Will sellers receive any stock as part of the Oklahoma acquisition and when?

Yes; $3.7M of the purchase price is payable in common stock to be issued on or before April 1, 2026 at a 15% discount to the five-day VWAP prior to issuance.