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Sim Agro to power 1606 Corp (OTC: CBDW) AI data center push

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

1606 Corp. 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 deal is intended to support 1606’s strategy to build captive power and data center infrastructure for artificial intelligence and high-performance computing.

Sim Agro is expected to operate 1606’s growing power and energy assets, starting with a Texas power-generation and data infrastructure property under contract on approximately 132 acres with a 50,000 sq ft warehouse. In connection with the transaction, an existing lien associated with Sim Agro is expected to be satisfied and removed after closing conditions and promissory note repayment, which management says would effectively reduce the net acquisition cost of the Texas facility by about $4.2 million.

Sim Agro brings a global team across multiple regions, more than 40 years of combined power-generation experience, and about $2.5 million in inventory, providing immediate operating capacity. Upon closing, 1606 plans to appoint Sim Agro’s Dr. Karthik Raghavan to its Board and enter into an employment contract with him as it builds a vertically integrated platform focused on captive power generation, data-center-ready real estate, and energy solutions for AI and high-density computing.

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Insights

1606 is pivoting into AI-focused power and data infrastructure via Sim Agro.

The agreement to acquire majority control of Sim Agro shifts 1606 toward owning and operating power and data-center infrastructure rather than only pursuing individual projects. Sim Agro contributes a global operations team, decades of power-generation experience, and tangible inventory, which together give immediate operating depth.

A key feature is the expected restructuring and removal of a Sim Agro-related lien, which management says would reduce the net acquisition cost of the 132-acre Texas power and data facility by about $4.2 million. This ties the corporate acquisition directly to improving the economics of a specific data-center-ready property.

The strategy centers on building a vertically integrated platform spanning captive power generation, data-center-ready real estate, and energy solutions for AI and high-density computing workloads. Actual impact will depend on closing both the Sim Agro deal and the Texas property purchase, and on future execution in scaling these assets under the disclosed risks and uncertainties.

Net acquisition cost reduction $4.2 million Expected reduction in net acquisition cost of Texas facility via lien satisfaction
Sim Agro inventory $2.5 million Inventory providing immediate working assets and operational continuity
Texas property size 132 acres Power-generation and data infrastructure property under Purchase and Sale Agreement in Lufkin, Texas
Texas warehouse size 50,000 sq ft Warehouse located on the 132-acre Texas power-generation property
Experience in power generation 40+ years Combined experience of Sim Agro’s team in developing and operating power-generation assets
captive power generation financial
"The Company intends to develop a platform focused on captive power generation, data-center-ready real estate and infrastructure..."
data-center-ready real estate and infrastructure financial
"The Company intends to develop a platform focused on captive power generation, data-center-ready real estate and infrastructure..."
high-density computing technical
"energy solutions for high-density computing."
High-density computing means packing a large amount of processing power, storage, and networking into a small physical footprint or limited energy budget so more work can be done per rack, server, or data center square foot. For investors it matters because it can lower capital and operating costs, enable faster or more scalable services, and change competitive dynamics in cloud, data center, and hardware businesses—like fitting many more apartments into the same building to boost return on space.
vertically integrated platform financial
"The combined company is building a vertically integrated platform delivering"
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.
Understanding 8-K Material Events →

EXHIBIT 99.1

 

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

 

PHOENIX, AZ — May 4, 2026 — 1606 Corp. (OTC: CBDW) (“1606” or the “Company”) today announced 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 has been able to generate revenue from 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 the satisfaction of 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 full repayment of a promissory note to be issued at closing, the lien is expected to be fully satisfied and removed, which would effectively reduce 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 unite 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 integrating an experienced power-plant operator directly within the public company dramatically 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 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:

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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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 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

 

 
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Source: View Original Filing on SEC EDGAR

FAQ

What transaction did 1606 Corp. (CBDW) announce with Sim Agro?

1606 Corp. announced a definitive agreement to acquire a majority controlling interest in Sim Agro Inc., a global power-plant operations and energy-infrastructure company. The deal aims to support 1606’s strategy to develop captive power and data center infrastructure for AI and high-performance computing markets.

How does the Sim Agro deal affect 1606 Corp.’s Texas power and data center property?

In connection with the Sim Agro deal, an existing lien tied to Sim Agro is expected to be satisfied and removed after conditions are met. Management states this would effectively reduce the net acquisition cost of 1606’s 132-acre Texas power and data infrastructure facility by about $4.2 million.

What capabilities does Sim Agro bring to 1606 Corp. (CBDW)?

Sim Agro brings a global team across the U.S., India, South Korea, Europe, and the Middle East, with over 40 years of combined experience in power-generation assets. It also contributes about $2.5 million in inventory, providing immediate working assets and supporting operational continuity for 1606’s infrastructure plans.

What is 1606 Corp.’s strategic focus after the Sim Agro acquisition?

1606 plans to build a vertically integrated platform focused on captive power generation, data-center-ready real estate and infrastructure, and energy solutions for AI and high-density computing. Integrating Sim Agro as the core operating energy division is intended to strengthen development and scaling of these infrastructure solutions.

Will Sim Agro’s leadership join 1606 Corp. after closing?

Upon closing, 1606 expects Dr. Karthik Raghavan of Sim Agro to be appointed to its Board of Directors and to enter into an employment contract with the company. This aligns Sim Agro’s operational leadership with 1606’s long-term strategy for power and data center infrastructure.

What risks and uncertainties does 1606 Corp. highlight around this strategy?

1606 notes that its plans and expectations are forward-looking and subject to risks, including reliance on unaudited statements, the need for additional funding, competitive pressures, demand for its services, and other risks detailed in its most recent Forms 10-K and 10-Q filed with the SEC.

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