1606 CORP. 8-K

What Happened
1606 CORP. (CBDW) filed an 8-K reporting it entered into a Second Amendment to its Purchase and Sale Agreement with Jefferson Enterprise Energy, LLC that extends the closing date for the purchase of certain real property and related assets in Angelina County, Texas from May 22, 2026 to October 31, 2026. The total purchase price remains $11,168,864.

Key Details

• The Company will pay an Extension Fee of $312,000 within one (1) business day after May 27, 2026, consisting of a $75,000 Operational Offset (fully earned by Seller and non‑refundable except as described) and a $237,000 Tax Contribution to be applied by the Seller toward resolution of an ad valorem tax litigation affecting the property ("Tax Suit"). The $237,000 will be credited against the purchase price if closing occurs.
• The $250,000 in earnest money previously paid under the First Amendment remains fully earned by the Seller and non‑refundable.
• If the Seller has not entered into a written payment plan or settlement with the taxing authorities on the Tax Suit on or before June 12, 2026, the Agreement will automatically terminate and the Seller must refund the entire Extension Fee to the Company.

Why It Matters
This amendment keeps the acquisition opportunity alive while keeping the purchase price unchanged, but it requires the Company to advance $312,000 (and leaves $250,000 already non‑refundable). The Extension Fee’s Tax Contribution is contingent on resolving tax litigation (and will reduce the purchase price if the deal closes). Investors should note the added cash outlay, the continued exposure of previously paid earnest money, and the conditional nature of the extension tied to the Seller’s handling of the Tax Suit.