1606 Corp. said Sept. 16 it signed a non-binding letter of intent with Prime Tex Group, USA, covering a possible purchase or assignment of the company’s rights in a roughly 132-acre biomass power and data center project in Lufkin, Texas.
The LOI is dated Sept. 6. It does not set a price or require either side to close. Prime Tex may review the existing purchase and sale agreement, the land, power equipment, title and permits. It is not required to finish that review or sign a definitive contract. The letter expires Dec. 31, 2026, unless extended.
“This LOI reflects preliminary interest from Prime Tex and represents an additional step in our efforts to explore opportunities to create value from the Project,” said Austen Lambrecht, CEO of 1606 Corp. “We believe Prime Tex’s stated presence in the Texas timber and sawmill industry, together with its stated plans to expand its U.S. operations, may make its interest relevant given the existing biomass infrastructure at the property. Any potential transaction, however, remains subject to due diligence, further negotiation and the execution of mutually acceptable definitive agreements.”
Prime Tex, according to the release, operates a sawmill in Kountze through Prime Tex Lumber LLC and is building another mill in Kennard under Prime Tex Inc., with production targeted by the end of 2026. The company says those mills produce wood chips that could feed biomass generation and that it also looks at biochar, pellets and an EB-5 effort tied to Prime Tex Renewables LLC.
1606 said the Lufkin site includes an existing biomass plant that it has studied for data-center and high-performance computing use. The LOI is non-exclusive, so the company can keep talking with other buyers or partners.
“We believe it is important to maintain flexibility as interest in the Project continues to develop,” Lambrecht added. “Prime Tex has expressed preliminary interest in evaluating a potential transaction involving the Company’s contractual interests in the Project, and we intend to continue discussions while Prime Tex conducts its evaluation, while we continue evaluating other opportunities involving the property. Our responsibility is to determine which path, if any, ultimately provides the greatest value to the Company and its shareholders.”
The company, traded as OTCID:CBDW, warned that it has not secured financing to buy the project, that the plant would be taken as-is, that the purchase-agreement closing deadline is now Oct. 31, 2026, after several extensions, and that title depends on pending tax and other litigation. Earnest money already paid would not come back if the acquisition fails. No transaction is assured.
