Innovation Beverage Provides Merger Update with BlockFuel

Innovation Beverag provided a business update highlighting progress across several strategic initiatives tied to its proposed merger with BlockFuel Energy. These developments include energy asset acquisitions, international digital infrastructure development, financing activity and merger-related milestones. BlockFuel has completed the acquisition of oil and gas production assets located in the state of Oklahoma. The aggregate purchase price was $12.5M, comprised of cash paid at closing, seller-financed considerations payable under an amortized note bearing interest, and $3.7M payable in shares of the company's common stock. The shares are to be issued on or before April 1 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. 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 six megawatts of modular generation capacity at select well sites. BlockFuel has entered a binding memorandum of understanding with Greenbelt Industries, 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 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. 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.