Source: GlobeNewswire (MIL-NZ-AU)
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
– Published by The MIL Network
LiveNews: https://livenews.co.nz/2026/02/09/nz-au-innovation-beverage-group-provides-business-update-highlighting-energy-expansion-and-proposed-merger-with-blockfuel-energy/