1606 CORP. 8-K

What Happened 1606 CORP. (CBDW) announced in an 8-K that it entered into a Purchase and Sale Agreement with Jefferson Enterprise Energy, LLC to acquire real property in Angelina County, Texas. The total purchase price is $11,168,864, payable with $7,000,000 cash at closing and the Company's assumption of a mechanic’s and materialman’s lien (the "Sim Agro Lien"). The parties set a closing date of April 15, 2026, and the sale is on an "AS‑IS, WHERE‑IS" basis. The Company deposited $250,000 in earnest money at signing; that deposit is nonrefundable to the Company except if the seller fails to perform and will be applied to the purchase price at closing.

Key Details

• Purchase price: $11,168,864 total (cash $7,000,000 + assumption of Sim Agro Lien recorded as Instrument No. 2025-00458298).
• Earnest money: $250,000 deposited with the title company; immediately nonrefundable to the Company except for seller default; credited at closing.
• Closing scheduled: April 15, 2026, subject to customary closing conditions.
• Sale terms: Property purchased "AS‑IS, WHERE‑IS"; Company indemnifies and will hold seller harmless for any losses related to the Sim Agro Lien (indemnity survives closing).

Why It Matters This is a material real-estate acquisition that requires a $7.0M cash outlay plus the assumption of an existing lien and an indemnity obligation for that lien. Investors should note the cash commitment, the nonrefundable earnest deposit, the indemnity (which may expose the company to future liabilities tied to the lien), and the AS‑IS sale condition—all of which affect the company’s near-term cash and contingent liabilities. The scheduled closing and the customary conditions will determine whether and when these obligations become final.