1606 Corp. (OTCID: CBDW) entered into a non‑binding term sheet with privately held power and sustainable‑energy firm Sim Agro Inc. on November 18, 2025. The agreement gives Sim Agro the right to acquire a controlling stake in 1606, creating a public platform for the energy company’s expansion into captive power generation for data centers and AI workloads.
Sim Agro, founded in 2010, is a small but growing player in the renewable‑energy space, reporting annual revenue of less than $1 million and employing 1–10 people. The company’s portfolio includes a handful of small‑scale hydro and solar projects, and it has expressed a strategy to build dedicated power plants for high‑density computing facilities. By acquiring 1606, Sim Agro will gain a U.S. public listing and a vehicle to raise capital for its expansion.
1606 has historically focused on AI chatbots for the cannabis‑derived‑product (CBD) industry and has posted significant net losses in recent quarters. Management cited liquidity challenges and a need to diversify revenue streams as key drivers for the deal. CEO Austen Lambrecht said the transaction “positions 1606 to participate in a rapidly growing sector, and we plan to pursue an up‑listing to a senior exchange once the transaction is completed.”
The term sheet does not disclose a purchase price or valuation multiples, and both parties have indicated that the definitive agreement will be subject to customary due diligence, regulatory approvals, and the execution of definitive agreements. The parties expect the transaction to close in the coming months.
Strategically, the deal aligns with the broader trend of data‑center operators seeking dedicated, reliable power sources to support AI workloads. Sim Agro’s expertise in building and operating power plants could provide 1606 with a new revenue stream and help address its liquidity issues. The acquisition also signals a pivot for 1606 away from its niche chatbot business toward a broader role in the AI and data‑center market.
Dr. Karthik Raghavan, President of Sim Agro, noted that “by acquiring 1606, we gain a public‑company platform to raise funds and execute our strategy of delivering reliable power for data centers.” The partnership is expected to create synergies in project development, operations, and capital raising.
While the announcement did not trigger an immediate market reaction, analysts are watching the deal for its potential to unlock value in the growing AI‑data‑center power niche and to provide 1606 with a path to financial stability.
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