1606 Corp. Signs Definitive Agreement to Acquire Sim Agro to Develop AI Data Center and Power Assets

1606 Corp. (OTC: CBDW) announced today that it has signed a definitive agreement to acquire a majority controlling interest in Sim Agro Inc., a global power-plant operations and energy-infrastructure company. The transaction is intended to support the Company’s strategy to develop captive power and data center infrastructure for the artificial intelligence and high-performance computing markets, subject to closing conditions.

The acquisition formalizes a partnership that has been developing over the past year, combining 1606’s public-market access with Sim Agro’s operational expertise. Sim Agro brings a global team spanning the U.S., India, South Korea, Europe, and the Middle East, with over 40 years of combined experience developing and operating power-generation assets. The company also holds $2.5 million in inventory, providing immediate working assets and operational continuity.

1606 previously announced it is under a Purchase and Sale Agreement to acquire a Texas power-generation property on approximately 132 acres with a 50,000 sq ft warehouse, which transaction is subject to closing conditions and is currently scheduled to close on May 22, 2026. In connection with the Sim Agro transaction, the parties have agreed to a restructuring of an existing lien associated with Sim Agro. Subject to the closing of the property acquisition and the full repayment of a promissory note to be issued at closing, the lien is expected to be fully satisfied and removed, effectively reducing the net acquisition cost of the facility by approximately $4.2 million dollars.

Upon closing, Sim Agro is expected to serve as the primary operator of the Company’s growing portfolio of power and energy infrastructure, beginning with the previously announced 132-acre power and data infrastructure property under PSA in Lufkin, Texas. The combined company is building a vertically integrated platform delivering captive power generation, data-center-ready real estate and infrastructure, and energy solutions for AI and high-density computing.

Transaction highlights include majority ownership of Sim Agro to be acquired by 1606 upon closing, with consideration to include a combination of shares and cash. Dr. Karthik Raghavan is to be appointed to the 1606 Board of Directors at closing and will enter into an employment contract with 1606 Corp. at or prior to closing. Existing obligations are to be restructured to align with long-term capital strategy.

Management believes that integrating an experienced power-plant operator directly within the public company materially strengthens its ability to develop and scale captive power solutions for data-center customers. The Company intends to develop a platform focused on captive power generation, data-center-ready real estate and infrastructure, and energy solutions for high-density computing. The foregoing reflects management’s current intentions and is subject to risks and uncertainties.

Austen Lambrecht, CEO of 1606 Corp., stated: “Signing this definitive agreement marks a major milestone in our company’s evolution. By bringing a proven global power-plant operator into the Company and aligning it with our Texas power asset under contract, we are building a vertically integrated infrastructure platform designed to support the next generation of AI and data-center development.” Dr. Karthik Raghavan added: “Joining forces with 1606 accelerates our mission to deliver reliable, scalable captive power solutions for data centers worldwide, and we look forward to expanding our global footprint as part of a public company platform.”

This press release contains forward-looking statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to reliance on unaudited statements, the Company’s need for additional funding, the impact of competitive products and services and pricing, the demand for the Company’s products and services, and other risks that are detailed from time-to-time in the Company’s filings with the SEC. The latest news and updates relating to $CBDW are available in the company’s newsroom at https://tinyurl.com/cbdwnewsroom.