1606 Corp extends Texas power project deal to 2026

1606 Corp. is advancing its planned acquisition of a power generation and infrastructure project in Angelina County, Texas by amending its Purchase and Sale Agreement with Jefferson Enterprise Energy.

Rhea-AI Filing Summary

1606 Corp. is advancing its planned acquisition of a power generation and infrastructure project in Angelina County, Texas by amending its Purchase and Sale Agreement with Jefferson Enterprise Energy. The amendment extends the targeted closing date to October 31, 2026 and required an extension payment.

Management reports active discussions with institutional investors, family offices, and energy-focused financing groups and has received multiple term sheets and proposed structures, though no binding financing commitments are in place. The project spans about 132 acres and includes an existing power plant, utility infrastructure, rail access, industrial improvements, and a 50,000-square-foot warehouse, which the company views as a platform for future data center and AI-related development.

Forward-looking risk factors highlight the need for additional funding, timely payment of the remaining $112,000 extension fee balance due on or before June 30, 2026, successful financing for the acquisition, resolution of pending tax and insurance litigation currently set for trial on August 17, 2026, and the seller’s ability to clear title, all of which could affect whether the transaction closes by October 31, 2026.

Insights

Energy infrastructure and project finance analyst

Deal timeline extended as financing and legal risks remain key hurdles.

1606 Corp. has secured more time to close its planned acquisition of a Texas power and infrastructure project by extending the Purchase and Sale Agreement’s outside date to October 31, 2026. An extension payment was made, and a remaining $112,000 extension fee balance is due by June 30, 2026.

Management reports multiple indications of interest and term sheets from institutional and energy-focused investors, but no financing commitments have been executed. This keeps the project at a pre-financial-close stage, where actual capital deployment depends on turning soft interest into binding agreements.

Risks are clearly outlined: the acquisition could fail if funding is not obtained on acceptable terms, if title issues are not cleared, or if pending tax and insurance suits, set for trial on August 17, 2026, are not resolved favorably. Future company filings may clarify financing status, legal outcomes, and whether the transaction ultimately closes by October 31, 2026.

Key Figures

Extended closing date: October 31, 2026 Extension fee balance: $112,000 Project land size: 132 acres +2 more

5 metrics

Extended closing date October 31, 2026 New outside closing date under amended Purchase and Sale Agreement

Extension fee balance $112,000 Remaining extension fee due on or before June 30, 2026

Project land size 132 acres Approximate size of Angelina County, Texas project site

Warehouse size 50,000 square feet Existing warehouse included in the project assets

Litigation trial date August 17, 2026 Tax suit and related insurance suit affecting the property

Key Terms

Purchase and Sale Agreement, extension payment, power offtake, forward-looking statements, +1 more

5 terms

Purchase and Sale Agreement financial

"execution of an Amendment to its Purchase and Sale Agreement with Jefferson Enterprise Energy, LLC"

A purchase and sale agreement is a legally binding contract that spells out exactly what is being bought or sold, the price, who must do what, the timeline, and any conditions that must be met before the deal closes — like a detailed recipe and checklist for a transaction. Investors care because this document determines when ownership or assets change hands, what risks or obligations remain, and which conditions (financing, approvals, inspections) could delay, alter, or void the deal and therefore affect a company’s value and stock price.

extension payment financial

"As part of the amendment, 1606 Corp. has made an extension payment"

power offtake financial

"Grid interconnection, power marketing, and power offtake evaluations."

forward-looking statements regulatory

"This press release contains forward-looking statements."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

capital expenditure estimates financial

"to further refine development plans and capital expenditure estimates."

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What acquisition is 1606 Corp (CBDW) pursuing in Texas?

1606 Corp is pursuing the acquisition of a power generation and infrastructure project on approximately 132 acres in Angelina County, Texas. The site includes an existing power plant, extensive utility infrastructure, rail access, industrial improvements, and a 50,000-square-foot warehouse for future development.

When is the extended closing deadline for 1606 Corp’s power project deal?

The Purchase and Sale Agreement closing date has been extended to October 31, 2026. This amendment gives 1606 Corp additional time to secure financing, complete due diligence, and satisfy remaining closing conditions while both parties remain committed to completing the transaction.

Has 1606 Corp (CBDW) secured financing for the power project acquisition?

1606 Corp has not yet secured binding financing for the acquisition. Management reports multiple indications of interest, term sheets, and proposed structures from institutional and energy-focused investors, but confirms that no definitive financing commitment has been signed at this time.

What payments and fees are associated with 1606 Corp’s amended purchase agreement?

Under the amended Purchase and Sale Agreement, 1606 Corp has made an extension payment and must pay a remaining $112,000 extension fee balance on or before June 30, 2026. These payments support the extended closing timeline to October 31, 2026 for the acquisition.

What legal and title risks affect 1606 Corp’s Texas power project acquisition?

The property is subject to pending tax and related insurance litigation currently set for trial on August 17, 2026. In addition, the seller must satisfy specified title clearance conditions before closing, and adverse outcomes could delay or prevent completion of the transaction by October 31, 2026.

How does 1606 Corp plan to use the Texas power site after acquisition?

1606 Corp is evaluating biomass upgrade opportunities, long-term feedstock strategies, and potential future data center and AI infrastructure development. Current work includes engineering assessments, grid interconnection and power marketing evaluations, financial modeling, and engagement with technology, energy, and infrastructure partners.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/03/2026 - 08:01 AM Learn about SEC filing dates

EXHIBIT 99.1

1606 Corp. Advances Power Acquisition as Financing Discussions Accelerate

PHOENIX, AZ – June 3, 2026 – 1606 Corp. (OTC: CBDW) announced continued progress toward the acquisition of the power generation and infrastructure project, including the execution of an Amendment to its Purchase and Sale Agreement with Jefferson Enterprise Energy, LLC, extending the closing date to October 31, 2026. The Company currently anticipates completing the transaction prior to the extension deadline.

The amendment reflects the continued commitment of both parties to complete the acquisition while providing additional time to finalize financing and satisfy remaining closing requirements. As part of the amendment, 1606 Corp. has made an extension payment and continues to work closely with the seller to advance the transaction toward closing.

Over the past several weeks, management has been actively engaged with a broad range of institutional investors, family offices, and energy-focused financing groups regarding both the acquisition and long-term development of the project. The Company has received multiple indications of interest, term sheets, and proposed financing structures and is actively evaluating several opportunities. No financing commitment has been signed at this time.

“We are pleased to have executed the Third Amendment and to report continued progress in financing discussions,” said Austen Lambrecht, Chief Executive Officer of 1606 Corp. “Over the past several weeks, we have continued discussions with multiple groups. We remain focused on completing the transaction and look forward to providing further updates as developments occur.”

Project Progress Update

The project consists of approximately 132 acres in Angelina County, Texas and includes an existing power generation facility, extensive utility infrastructure, rail access, industrial improvements, and a 50,000-square-foot warehouse.

Since announcing the transaction, the Company has made meaningful progress across multiple workstreams, including engineering reviews, operational planning, financing initiatives, and strategic development efforts. Current activities include:

·	Detailed engineering and operational assessments of the power generation facility.
·	Evaluation of biomass upgrade opportunities and long-term feedstock strategies.
·	Planning for future data center and AI infrastructure development.
·	Grid interconnection, power marketing, and power offtake evaluations.
·	Engagement with technology, energy, and infrastructure partners.
·	Financial modeling, capital planning, and phased development strategies.

Management has also continued reviewing historical engineering reports, environmental studies, operational assessments, and infrastructure documentation to further refine development plans and capital expenditure estimates.

The Company believes the combination of existing power infrastructure, industrial improvements, strategic location, and future expansion potential creates a compelling platform opportunity capable of supporting significant long-term value creation.

Company Strategy

The acquisition represents a step in 1606 Corp.’s strategy of acquiring and developing energy infrastructure assets. The Company’s strategy and development plans will be described in further detail in its SEC filings.

Looking Ahead

1606 Corp. remains focused on completing the acquisition, securing project financing, and advancing development initiatives. Management believes recent progress in financing discussions, strategic partnerships, and project diligence has strengthened the Company’s position and continues to move the transaction toward closing.

The Company expects to provide additional updates regarding financing activities, project milestones, and closing progress as developments occur.

Forward-Looking Statements

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 Company’s ability to satisfy its remaining payment obligations under the Purchase and Sale Agreement (as amended), including the timely payment of the remaining $112,000 extension fee balance due on or before June 30, 2026; the risk that financing for the acquisition may not be obtained on acceptable terms or at all; the risk that the transaction may not close by October 31, 2026 or at all; pending litigation and title matters affecting the property, including a tax suit and a related insurance suit currently set for trial on August 17, 2026; the seller’s ability to satisfy title clearance conditions required for closing; 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 foregoing list of factors is not exhaustive. Readers should carefully consider the foregoing factors and the other risks and uncertainties discussed in the Company’s most recent reports on Forms 10-K and 10-Q, particularly the “Risk Factors” sections of those reports, and in other documents the Company has filed, or will file, with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

1606 Contact

Austen Lambrecht

CEO, 1606 Corp.

austen@1606corp.com

cbdw.ai

SOURCE: 1606 Corp.

2

Filing Exhibits & Attachments

6 documents

Press Releases

• EX-99.1 PRESS RELEASE 13.3 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 4.9 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 13.4 KB
• EX-101 XBRL TAXONOMY EXTENSION CALCULATION LINKBASE 898 B
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 8.4 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE 2.0 KB