Innovation Beverage enters LOI for potential merger with BlockFuel Energy

Innovation Beverage Group (NASDAQ:IBG [https://seekingalpha.com/symbol/IBG]) has entered into a non-binding letter of intent for a merger [https://seekingalpha.com/pr/20240962-innovation-beverage-group-enters-into-letter-of-intent-for-potential-merger-with-blockfuel]transaction with BlockFuel Energy, it said on Tuesday, sending shares up 5% in premarket trading.

The post-transaction combined company resulting from the merger of IBG and BFE is expected to have an equity valuation range of approximately $220 million to $343 million.

BlockFuel Energy is a Texas corporation that engages in combining oil and gas exploration with power generation to power bitcoin mining operations and high-performance data centers in North America.

IBG plans to acquire BlockFuel (BFE) through a reverse merger, where a new IBG subsidiary will merge into BFE. After the deal, BFE will survive, and its owners will receive 90% of IBG's total shares.

Daniel Joseph Lanskey, currently President and CEO of BlockFuel and a Director of IBG, is expected to be appointed Chairman of the Board and Chief Executive Officer of IBG, and Sahil Beri, currently Chairman of the Board and Chief Executive Officer of IBG, is expected to be appointed as President of a newly formed Australian beverage subsidiary.

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* Financial information for Innovation Beverage Group Limited [https://seekingalpha.com/symbol/IBG/income-statement]