1606 Corp. (OTCID: CBDW) announced a $6 million investment commitment letter from ENMAS EPC Power Projects Limited, a publicly‑listed Indian power‑project developer with FY 2024 revenue of approximately $7.5 million. The commitment is contingent on definitive agreements, due diligence, and customary closing conditions, underscoring that the funding is not yet finalized.
The capital will be used to acquire a power plant and build AI‑ready data‑center infrastructure, a core component of 1606’s pivot from a CBD‑product seller to a provider of captive power for high‑density AI workloads. The company’s CEO, Austen Lambrecht, said the investment “reflects strong confidence in our strategy and long‑term vision, especially as we move forward with the potential merger with Sim Agro Inc.”
Liquidity data shows 1606 had only $285 in cash as of March 31 2025 and a $2.35 million current liability load, with a net cash position of –$549,071 and an Altman Z‑Score of –1116.78. The $6 million commitment could bridge a projected $1 million cash need over the next 12 months and support the company’s planned expansion into data‑center operations.
ENMAS’s financial capacity is notable: its FY 2024 revenue of ₹63 cr (≈$7.5 million) is comparable to the commitment, indicating a significant investment for the Indian firm. The partnership aligns with ENMAS’s expertise in power‑generation projects and positions 1606 to leverage ENMAS’s experience in large‑scale plant development.
The commitment is tied to a pending merger with Sim Agro Inc., a global power and sustainable‑energy company that has executed over 80 power projects totaling more than 2,000 MW across India, Europe, South Korea, and the Middle East. The merger would combine 1606’s AI‑focused power strategy with Sim Agro’s operational expertise, creating a combined entity with a stronger global footprint in energy infrastructure for AI data centers.
Market reaction to the Sim Agro term‑sheet announcement on November 18, 2025 was highly positive, with shares of 1606 surging 108% as investors recognized the company’s entry into the high‑margin, long‑cycle AI power market and Sim Agro’s proven track record in power‑plant development. The current investment commitment is expected to reinforce that narrative and signal continued confidence in the company’s strategic direction.
The $6 million commitment, while still subject to closing, represents a critical inflection point for 1606. It provides the financial foundation to execute its power‑plant acquisition, build AI‑ready data‑center infrastructure, and advance the Sim Agro merger, thereby addressing liquidity constraints and positioning the company for growth in a rapidly expanding market for captive power to support AI workloads.
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