1606 Corp., the Phoenix-based infrastructure company trading on the OTC markets under the ticker CBDW, has provided an update on its planned acquisition and redevelopment of a 132-acre biomass power facility in Lufkin, Texas, disclosing that it has engaged a commercial advisory firm to market the site to potential data center tenants and strategic partners while the purchase itself remains contingent on financing that has not yet been secured.

MDM Group Takes Lufkin Site to Market

The company has engaged MDM Group LLC to lead commercialization efforts for the Lufkin project. According to 1606, MDM has begun presenting the opportunity to its network of hyperscale operators, artificial intelligence compute companies, infrastructure investors, and other prospective counterparties.

The engagement is designed to identify potential long-term capacity off-takers, AI and high-performance computing operators, strategic partners, and possible purchasers for the site.

The commercialization process is structured to evaluate multiple deal formats. 1606 stated that strategic alternatives under consideration include an off-take arrangement, a joint venture, or a potential sale or assignment of the company's contractual interest in the project.

The company noted there can be no assurance that MDM's efforts will result in any transaction. 1606 described securing a credible end user or strategic partner as an important component of its long-term development strategy for the Lufkin site.

Power-Generation Services Firm Engaged for Recommissioning

Separately, 1606 disclosed that it has engaged an experienced power-generation services company to support the planned operation and recommissioning of the approximately 55-megawatt biomass facility.

The company declined to formally identify the service provider at this stage, stating it expects to provide additional details as the project advances and appropriate disclosure milestones are reached.

The unnamed firm has provided 1606 with a detailed operations and maintenance plan covering staffing, mobilization, plant operations, maintenance, and the transition toward full operational responsibility following completion of the acquisition.

The company said this workstream is being advanced alongside plans to use the facility's generation capabilities to support behind-the-meter power for data centers, AI and other high-performance computing infrastructure.

Behind-the-meter power arrangements, which allow large energy consumers to draw power directly from on-site generation rather than the grid, have become an increasingly prominent feature of data center development strategies as operators seek to secure reliable and cost-effective electricity supplies for energy-intensive AI workloads.

Acquisition Remains Contingent on Unsecured Financing

Despite the parallel workstreams underway, the Lufkin acquisition has not yet closed and remains dependent on financing that 1606 has not secured.

The company's existing purchase agreement provides for a closing on or before October 31, 2026. 1606 disclosed that the scheduled closing date has been extended on multiple occasions.

The company also disclosed that it has paid substantial non-refundable amounts under the purchase agreement that are not credited toward the purchase price and that will be forfeited if the acquisition is not completed.

1606 did not specify the total amount of non-refundable payments made to date. Management said it is simultaneously pursuing financing, plant recommissioning planning, end-user and off-taker discussions and strategic alternatives for the project.

SEC Reporting Maintained Amid Development Activity

1606 also noted that it recently filed its latest quarterly report with the Securities and Exchange Commission, maintaining its reporting obligations as it continues to advance the Lufkin project.

The company said the filing provides investors with updated disclosure regarding its operations, financial position and ongoing development activities.

No specific financial figures from the quarterly report were disclosed in the announcement.

CEO Outlines Parallel Execution Strategy

CEO Austen Lambrecht framed the current phase of the project as one of simultaneous execution across multiple fronts.

"MDM is actively taking the site into the market and working to identify end users and strategic counterparties, while we have also established a path toward professional operation and recommissioning of the power plant through our work with an experienced power-generation services provider," Lambrecht said.

"These are important steps as we continue working toward the acquisition and the broader goal of positioning Lufkin as a significant powered infrastructure asset."

Lambrecht also pointed to several characteristics of the Lufkin site that he said support multiple commercialization paths.

"The combination of existing generation infrastructure, behind-the-meter power potential, substantial acreage, and an existing industrial facility gives us several potential paths to create value," he said.

"Our focus now is execution, completing the acquisition, advancing the operating plan, and converting the commercial interest in the data center site into actionable partnerships and transactions."

About the Lufkin Project

The Lufkin project is described as an approximately 132-acre industrial campus in East Texas centered around the 55-megawatt biomass generation facility and existing industrial infrastructure.

1606 said its strategy is to evaluate the site's existing generation and electrical infrastructure for the development of behind-the-meter power solutions supporting AI, high-performance computing, data center, and other power-intensive applications.

The company said it is evaluating multiple commercialization structures for the site, including direct development, long-term capacity off-take arrangements, strategic joint ventures and a potential sale of the project.

1606 Corp. describes its broader corporate focus as identifying and developing infrastructure opportunities at the intersection of power generation, powered real estate and artificial intelligence.