Street Calls of the Week
SYDNEY - Innovation Beverage Group Ltd (Nasdaq:IBG) announced Wednesday it has entered into a definitive agreement for a reverse triangular merger with BlockFuel Energy Inc., a Texas-based company engaged in oil and gas exploration and power generation supporting Bitcoin mining operations. IBG, currently valued at $7.48 million and generating annual revenues of $2.93 million, has maintained impressive gross margins of 76%, according to InvestingPro data.
The transaction is expected to close in the fourth quarter of 2025, with the combined entity to trade on the Nasdaq under the ticker symbol "FUEL," according to a company press release.
Under the agreement terms, BlockFuel owners will receive ordinary shares representing 90% of the post-transaction company, while IBG shareholders will retain 10%. An independent fairness analysis conducted by Marshall & Stevens Transaction Advisory Services estimates the combined company’s equity valuation between $220 million and $343 million.
Daniel Lanskey, currently President and CEO of BlockFuel and a Director of IBG, will become Chairman and CEO of the combined entity. Sahil Beri, IBG’s current CEO, will step down to lead a newly formed beverage subsidiary.
The merger combines IBG’s beverage portfolio of 60 formulations across 13 brands with BlockFuel’s vertically integrated business model that converts natural gas, including stranded and flared gas, into power for Bitcoin mining operations and data centers.
"BlockFuel is uniquely positioned at the forefront of energy innovation and digital asset mining, and we are pleased to provide a public vehicle for BFE to introduce itself to the capital markets," said Beri in the statement.
The transaction remains subject to customary closing conditions, including regulatory and shareholder approvals. IBG’s stock has experienced notable volatility, having declined 40.37% year-to-date while trading between $1.48 and $9.85 over the past 52 weeks. For comprehensive analysis of merger implications and detailed financial metrics, visit InvestingPro.
In other recent news, Innovation Beverage Group Ltd has announced a definitive agreement for a reverse triangular merger with BlockFuel Energy Inc. This merger is expected to close in the fourth quarter of 2025, with BlockFuel shareholders set to own 90% of the combined entity. Daniel Joseph Lanskey, currently the CEO of BlockFuel, will become the Chairman and CEO of the new company, while Sahil Beri, the current CEO of Innovation Beverage Group, will transition to President of a newly formed Australian beverage subsidiary. Additionally, Innovation Beverage Group has revealed plans to implement a five-for-one reverse stock split, which will take effect on September 26, 2025. The company’s shares will trade on a split-adjusted basis under the same ticker symbol, IBG, but with a new CUSIP number. These developments highlight significant structural changes within the company as it moves forward with its strategic initiatives.
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