1606 CORP.

1606 Corp. announced a strategic agreement with MDM Group LLC to market its planned 132-acre East Texas (Lufkin) power campus. The campus, featuring approximately 55 MW of behind-the-meter generation, is being positioned for AI data center development. MDM Group will assist in identifying and introducing prospective buyers, long-term capacity off-takers, and joint venture partners for the site, operating on a success-fee-only basis.

1606 Corp. amended and restated a promissory note with its former CEO, Gregory Lambrecht, extending the maturity date to December 31, 2026. The note, with an outstanding balance of over $2 million, now allows conversion into common stock at a 50% discount to the closing bid price, subject to a 9.99% beneficial ownership limit. Additionally, Venu Aravamudan resigned from the company's Board of Directors, and the board subsequently reduced the authorized number of directors to two.

1606 Corp. announced continued progress toward the acquisition of a power generation and infrastructure project, including an amendment to its Purchase and Sale Agreement with Jefferson Enterprise Energy, LLC. The closing date has been extended to October 31, 2026, to finalize financing and other closing requirements. The company has made an extension payment and is actively evaluating multiple financing opportunities, though no commitment has been signed yet.

1606 Corp. has entered into a Second Amendment to its Purchase and Sale Agreement with Jefferson Enterprise Energy, LLC, extending the closing date for the acquisition of real property and related assets in Angelina County, Texas. The closing date has been moved from May 22, 2026, to October 31, 2026, with the total purchase price of $11,168,864 remaining unchanged. As consideration for this extension, 1606 Corp. will pay an Extension Fee of $312,000, which includes a $75,000 non-refundable Operational Offset Amount and a $237,000 Tax Contribution that will be credited against the purchase price if the closing occurs. The agreement includes a condition for termination and refund of the Extension Fee if the Seller does not resolve certain ad valorem tax litigation by June 12, 2026.

1606 Corp. reported a net loss of $1.07 million for Q1 2026, significantly wider than the $0.21 million loss in Q1 2025, primarily due to increased interest expense and an acquisition extension fee. The company's ability to continue as a going concern is in substantial doubt, as it relies on raising additional capital. During the quarter, 1606 Corp. continued its strategic shift towards acquiring and developing power infrastructure and energy assets for data centers and AI operations, while also facing defaults on several promissory notes.

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.

1606 Corp. and Jefferson Enterprise Energy, LLC entered into the First Amendment to their Purchase and Sale Agreement, extending the closing date for the acquisition of real property and related assets in Texas. The new closing date is May 22, 2026, pushed back from April 15, 2026. The total purchase price of $11,168,864 remains the same, however, the $250,000 previously deposited as earnest money is now a non-refundable extension fee and will not be credited towards the purchase price, representing an additional cost for 1606 Corp.