1606 Corp. entered into a non-binding term sheet for the proposed acquisition of a 55 MW power generation facility, climate-controlled data-center ready warehouse, and related property in Lufkin, Texas, for approximately $11.67 million, consisting of $7.5 million cash and assumption of $4.17 million indebtedness. The transaction is expected to close on or before March 11, 2026, subject to definitive agreements and customary conditions.
Key takeaways
Entered non-binding term sheet for acquisition of 55 MW power generation facility and 50,000 sq ft data-center ready warehouse in Lufkin, Texas
Total purchase consideration of $11.67 million: $7.5 million cash at closing and $4.17 million assumption of existing indebtedness
Acquisition includes approximately 132 acres of real property, equipment, improvements, permits, and related assets
Exclusivity period with 15-day inspection; $500,000 earnest money upon definitive Purchase Agreement execution
Expected closing on or before March 11, 2026
Negotiations ongoing for acquisition of Sim Agro Inc. to operate the power generation