1606 Corp. (OTC: CBDW) 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 announced Monday. The transaction is designed to support 1606’s strategy to develop captive power and data center infrastructure for the artificial intelligence and high-performance computing markets, subject to closing conditions.
Sim Agro, which generates revenue by operating and consulting on power projects, 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.
In connection with the acquisition, 1606 previously announced a Purchase and Sale Agreement to acquire a Texas power-generation property on approximately 132 acres with a 50,000 sq ft warehouse, which is currently scheduled to close on May 22, 2026. 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.
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 Texas property in Lufkin, Texas. The combined company aims to build a vertically integrated platform delivering captive power generation, data-center-ready real estate and infrastructure, and energy solutions for AI and high-density computing.
“Signing this definitive agreement marks a major milestone in our company’s evolution,” said Austen Lambrecht, CEO of 1606 Corp. “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, who will be appointed to the 1606 Board of Directors at closing and will enter into an employment contract with the company, said, “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.”
The transaction consideration includes a combination of shares and cash. 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.
This announcement is important because it reflects a growing trend of public companies acquiring operational energy expertise to meet the surging power demands of AI and high-performance computing. By combining real estate, power generation, and operational capabilities under one roof, 1606 is positioning itself to offer turnkey solutions for data center developers, potentially reducing costs and speeding up deployment. The $4.2 million reduction in net acquisition cost for the Texas property also highlights financial efficiencies that could benefit shareholders.
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