PHOENIX, May 04, 2026 (GLOBE NEWSWIRE) -- 1606 Corp. (OTC: CBDW) (“1606” or the “Company”) today announced 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 company generates revenue by operating and consulting on power projects. 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.
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.
Sim Agro Brings Immediate Strength and Global Reach
• A global team spanning the U.S., India, South Korea, Europe, and the Middle East • 40+ years of combined experience developing and operating power-generation assets • $2.5 million in inventory providing immediate working assets and operational continuity
Over the past year, the two companies have worked closely to combine public-market access with world-class power-generation expertise. This definitive agreement formalizes that vision, with Sim Agro becoming part of the public company and the core operating energy division supporting 1606’s expanding data-center and power strategy.
Transaction Highlights
• Majority ownership of Sim Agro to be acquired by 1606 upon closing • Consideration to include a combination of shares and cash • Dr. Karthik Raghavan to be appointed to the 1606 Board of Directors at closing • Dr. Raghavan to enter into an employment contract with 1606 Corp. at or prior to closing • Existing obligations to be restructured to align with long-term capital strategy
Strategic Overview
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.
The combined company is building a vertically integrated platform delivering:
• Captive power generation • Data-center-ready real estate and infrastructure • Energy solutions for AI and high-density computing
Leadership Commentary
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."
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