1606 Corp. (OTC:CBDW) Enters into Term Sheet to Acquire Texas 55 MW Power Generation Facility and 50,000 SQ Foot Data-Center Ready Climate Controlled Warehouse

PHOENIX, AZ / ACCESS Newswire / February 17, 2026 / 1606 Corp. (OTCID:CBDW) ("1606" or the "Company"), a publicly traded Nevada corporation focused on power infrastructure and energy assets supporting data, AI, and industrial demand, today announced that it has entered into a non-binding term sheet for the proposed acquisition of a power generation facility, climate-controlled data-center ready facility, and related property located in Lufkin, Texas. This asset is ready as a behind the meter captive power generator for AI and data center infrastructure.

The transaction contemplates the acquisition of approximately 132 acres of real property, together with associated equipment, improvements, permits, entitlements, operating data, and related assets used in connection with the power generation and data-center facilities. This allows the company to run captive behind the meter power to data-center and AI infrastructure projects on site.

The proposed transaction reflects a total purchase consideration of approximately $11.67 million, comprised of $7.5 million in cash at closing and the assumption of approximately $4.17 million in existing indebtedness related to the power plant. The Company anticipates funding the cash portion of the acquisition through a combination of capital sources aligned with its broader power and infrastructure strategy. The Company anticipates funding the acquisition through a combination of capital sources aligned with its broader power and infrastructure strategy.

The parties have agreed to an exclusivity period while definitive agreements are negotiated during a fifteen-day inspection period. The transaction is expected to close on or before March 11, 2026, subject to the negotiation and execution of definitive documentation and the satisfaction of customary closing conditions. The Company will deposit $500,000 in earnest money upon execution of the definitive Purchase Agreement.

"This transaction represents an important step in executing our strategy to build a scalable portfolio of power assets capable of supporting next-generation infrastructure demand," said Austen Lambrecht, CEO and Chairman of 1606 Corp. "We believe the acquisition of this facility meaningfully strengthens our asset base, enhances long-term cash flow potential, and positions the Company favorably as we pursue higher-tier exchange listing standards."