https://www.newswire.com/news/1606-corp-engag...site-to-ai
PHOENIX, August 11, 2026 (Newswire.com) - 1606 Corp. (OTCID:CBDW) ("1606" or the "Company"
Under the agreement, MDM Group will assist 1606 in identifying, qualifying, and introducing prospective buyers, long-term capacity off-takers, and joint venture partners for the Company's planned acquisition of its approximately 132-acre East Texas power campus, featuring approximately 55 MW of behind-the-meter generation and an existing industrial facility positioned for accelerated AI, cloud computing, and high-performance computing ("HPC"
MDM Group's leadership brings decades of experience spanning hyperscale data center operations, enterprise infrastructure, power markets, and large-scale capital projects. According to MDM, the firm maintains a portfolio of approximately 30 powered and brownfield infrastructure sites across 17 states and works with AI infrastructure developers, hyperscale operators, institutional investors, and enterprise compute companies to connect rapidly growing compute demand with strategically located powered assets.
The engagement is structured as a success-fee-only arrangement, with no upfront retainer or monthly advisory fees. MDM will coordinate prospective introductions, manage confidentiality agreements, oversee portions of the due diligence process, and facilitate communications with qualified counterparties throughout potential transactions. MDM's engagement relates solely to commercial real estate and infrastructure advisory and origination services with respect to the Site and does not involve, and MDM is not being engaged for, the offer or sale of securities, capital raising, or any activity requiring broker-dealer registration.
"As the demand for AI infrastructure continues to accelerate, access to reliable power has become one of the industry's most valuable assets," said Austen Lambrecht, Chief Executive Officer of 1606 Corp. "Our engagement with MDM Group significantly expands our reach into the AI infrastructure ecosystem by connecting us with experienced professionals and an established network of hyperscale operators, enterprise compute providers, and infrastructure investors. We believe the Lufkin project-with its behind-the-meter generation, existing industrial infrastructure, and expansion potential-is well positioned to address the growing demand for powered sites across North America."
MDM Group specializes in originating opportunities involving powered land, energy infrastructure, and AI compute development. Through this engagement, the firm will introduce prospective counterparties from its network of neocloud operators, hyperscale compute companies, infrastructure investors, and strategic developers while managing a coordinated marketing and introduction process on behalf of the Company.
The Company continues to evaluate multiple commercialization pathways for the project, including:
Long-term AI and HPC capacity lease agreements
Strategic joint ventures for data center development
Additional infrastructure financing to support development following acquisition
1606 believes maintaining flexibility across multiple transaction structures may provide opportunities to enhance shareholder value while meeting the evolving infrastructure needs of AI developers and enterprise compute operators.
The Company's Purchase and Sale Agreement for the Lufkin facility currently extends through October 31, 2026, providing additional time to complete financing activities, advance due diligence, and evaluate strategic opportunities presented through its expanding network of infrastructure and capital partners.