1606 Corp. has terminated a previously announced stock exchange agreement with Sim Agro Inc. The termination was formalized on September 28, 2026, with the execution of a Termination and Mutual Release Agreement between the two parties.
The original agreement, an Agreement and Plan of Stock Exchange dated May 2, 2026, was intended to result in 1606 acquiring 51% of Sim Agro's outstanding capital stock. However, the filing confirms that the closing of this transaction never occurred. Consequently, no shares of common stock were issued, and no purchase price was paid.
The filing details that certain documents were executed in anticipation of the closing, including a promissory note with an original principal amount of $422,322. Under the new Termination Agreement, these documents are rescinded and declared void, as they were contingent upon the closing that never took place.
Both parties have agreed to mutual releases and covenants not to sue regarding claims arising from the proposed acquisition and the failure to close. The agreement explicitly preserves the rights of certain creditors, including ENMAS EPC Power Projects Limited and Jefferson Enterprises, regarding specific power plant assets. Sim Agro has agreed to indemnify 1606 against claims related to these ENMAS obligations. No termination fee or early termination penalty was required to be paid by 1606.
