1606 Corp. Announces Definitive Agreement to Acquire Sim Agro, Expanding Into Power and Data Center Infrastructure for AI Growth

Key Points of the Announcement

• 1606 Corp. (OTC: CBDW) has signed a definitive agreement to acquire a majority controlling interest in Sim Agro Inc., a global energy infrastructure and power-plant operations company.
• The transaction is a critical step in 1606’s strategy to build captive power and data center infrastructure focused on serving artificial intelligence (AI) and high-performance computing markets.
• The acquisition is subject to standard closing conditions, including the closing of a previously announced Texas power generation property deal.
• The Texas property under contract spans approximately 132 acres and includes a 50,000 sq ft warehouse. The closing is targeted for May 22, 2026.
• Upon closing, Sim Agro will become the primary operator of 1606’s expanding portfolio of power and energy infrastructure assets.
• A restructuring of an existing Sim Agro lien will reduce the net acquisition cost of the Texas facility by approximately \$4.2 million, subject to the completion of the closing and repayment of a promissory note.

Details and Shareholder-Relevant Information

• Sim Agro brings immediate operational strength including:
  • A global team with presence in the U.S., India, South Korea, Europe, and the Middle East
  • Over 40 years of combined experience in power generation asset development and operations
  • \$2.5 million in inventory providing immediate working assets and business continuity
• Over the past year, 1606 and Sim Agro have collaborated to align public-market access with leading energy infrastructure expertise. This agreement formalizes their partnership, positioning Sim Agro as the energy division within 1606.
• Transaction highlights:
  • 1606 will acquire majority ownership in Sim Agro through a mix of shares and cash
  • Dr. Karthik Raghavan, a key leader at Sim Agro, will join the 1606 Board of Directors and sign an employment contract with the company at or before closing
  • Existing Sim Agro obligations will be restructured to fit 1606’s long-term capital strategy

Strategic Significance and Potential Impact on Share Value

• Vertical Integration for Growth: Integrating an established power-plant operator with public company resources is expected to significantly enhance 1606’s ability to deliver captive power solutions for data center customers, a rapidly growing market driven by AI and high-density computing demand.
• Platform Expansion: The combined entity will focus on:
  • Captive power generation
  • Data-center-ready real estate and infrastructure
  • Energy solutions tailored for AI and high-density computing requirements
• Leadership Commentary:
  • Austen Lambrecht, CEO of 1606: Called the acquisition a “major milestone” and emphasized the company’s goal of building a vertically integrated infrastructure platform to support the next wave of AI and data center development.
  • Dr. Karthik Raghavan: Highlighted the opportunity to rapidly scale reliable, captive power solutions for global data center needs and expand Sim Agro’s footprint as part of a public company.

Potential Price Sensitive Information

• The acquisition gives 1606 an operational team with substantial inventory and longstanding industry experience, which could immediately impact their ability to generate revenue from energy infrastructure projects.
• The restructuring of Sim Agro’s lien and its removal upon closing will reduce the acquisition cost by \$4.2 million, positively affecting 1606’s balance sheet and potentially its share value.
• The addition of Dr. Raghavan to the board and executive team may enhance investor confidence, given his expertise in power infrastructure.
• The shift towards serving the booming AI data center market positions 1606 in a high-growth sector, which may be viewed favorably by current and prospective shareholders.

Forward-Looking Statements and Risks

This transaction includes forward-looking statements subject to various risks and uncertainties. These include the completion of closing conditions, the need for additional funding, competitive pressures, market demand for the company’s services, and other factors as outlined in 1606’s SEC filings.
Investors should be aware that actual results could differ materially from current projections, and the company does not commit to updating these statements.

Contact Information

Austen Lambrecht
CEO, 1606 Corp.
[email protected]
cbdw.ai

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are urged to review all official filings and consult with their financial advisors before making investment decisions. The company’s forward-looking statements involve risks as described in its SEC filings.

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