AcquisitionsMay 4, 2026, 08:06 AM
1606 Corp. to Acquire Majority Stake in Sim Agro for AI Data Centers
AI Summary
1606 Corp. signed a definitive agreement to acquire a 51% majority interest in Sim Agro Inc., a global power-plant operations and energy-infrastructure company. This strategic acquisition aims to develop captive power and data center infrastructure for the artificial intelligence and high-performance computing markets. The consideration includes 150 million shares of 1606 common stock at closing, 100 million deferred shares (or $2.1 million cash), and the assumption and restructuring of Sim Agro's $2.32 million trade payable, which will be settled with a promissory note and 25 million 1606 shares. The deal also involves Dr. Karthik Raghavan, Sim Agro's sole stockholder, joining 1606's Board and management.
Key Highlights
- 1606 Corp. to acquire 51% majority interest in Sim Agro Inc.
- Initial consideration: 150,000,000 1606 shares at closing.
- Deferred consideration: 100,000,000 1606 shares or $2,100,000 cash.
- Assumed Sim Agro trade payable: approximately $2,324,033.
- Debt restructuring includes a $422,322 promissory note and 25,000,000 1606 shares.
- Option to increase ownership to 81% within 36 months.
- Sim Agro brings $2.5 million in inventory and 40+ years of experience.
- Expected to reduce net acquisition cost of Texas property by approximately $4.2 million.