11:54 AM EDT, 09/23/2025 (MT Newswires) -- Innovation Beverage Group ( IBG ) said Tuesday that it has signed a non-binding letter to merge with oil and gas exploration company BlockFuel Energy.

The merger will be structured as a reverse triangular merger, with a newly formed subsidiary of Innovation Beverage ( IBG ) merging with BlockFuel Energy, with owners of BlockFuel Energy receiving a 90% of IBG common stock on a post-transaction basis, the company said.

The merger will be subject to certain closing conditions, including completion of a separate financing, and approvals from the stockholders from both the companies, Innovation Beverage ( IBG ) said.

Separately, Innovation Beverage ( IBG ) also announced a five-for-one reverse stock split of its ordinary shares, which will take effect on Sept. 26.

Shares of Innovation Beverage ( IBG ) were up about 94% in recent Tuesday trading.

Price: 0.74, Change: +0.37, Percent Change: +101.22