1606 Corp (OTC | CBDW) Signs $7.2M LOI To Acquire Sanctum Herbal
March 8th, 2023
News, Top News
1606 Corp (OTC: CBDW), an acquisition-based CBD company, announces it has signed a definitive letter of understanding to purchase 51% of India-based nutraceutical company, Sanctum Herbal Corp. Both parties have agreed to a purchase price of $7,200,000 in a combination of cash and stock. The expected closing of the deal is March 2023 pending an inspection of the factory and facilities in Hyderabad India. 1606 Corp. senior executive Austen Lambrecht is currently conducting an on-site factory survey, inspecting the inventory outlined in the deal, and meeting management and the medical advisory board.
“This is a great deal for us and for the shareholders. We’re going to own 51% of Sanctum allowing us to add revenue which gets us another step closer to fulfilling the listing requirements of a national exchange… We will receive a significant amount of inventory allowing us to go to market quickly and we have access to world-class scientists who can help us develop future products. Again, it’s a great deal!” Said Greg Lambrecht, CEO of CBDW.
The transaction is as follows; The Company, Sanctum Herbal Corp, and its shareholders will sell fifty-one percent (51%) of Sanctum to 1606 Corp for the purchase price of roughly 7.2 Million dollars. As a benefit of the purchase, CBDW will receive exclusive international distribution rights for all products and technology. CBDW will receive $7M USD in inventory and the company intends to launch distribution in the U.S., Mexico and India in Q2 of 2023.
Once the CBDW/ Sanctum deal is complete, CBDW will also have access to a great team of award-winning doctors, researchers, and scientists. The advisory board consists of research doctors with various positions and medical backgrounds who will assist in qualifying and certifying product efficacies to collaborate on the research and development of new all-natural, organic products. https://sanctumherbal.com/products/
“To help as many people as possible, as quickly as possible, we are focused on nutraceuticals rather than formulaic drugs that require extensive clinicals for product approval. CoroQuil-Zn is a nutraceutical classified as GRAS (Generally Recognized as Safe). The partnership with CBDW will allow us to stay on mission even faster”, Said Pat Krishnan, CEO
About Sanctum Herbal; Supporting your health naturally
In our world with increasing microbial and viral threats, Sanctum Herbal’s mission is to develop effective new evidence-based Ayurvedic herbal supplements which are 100% natural, organic, and GMO-free that help support the individual’s immunity and lung functions by Tapping Into India’s Ayurvedic Tradition.
India’s Ayurvedic alternative medicine is a 5,000-year-old tradition. By returning to evidence-based herbal remedies that were documented over centuries, Sanctum Herbal can provide access to nutraceuticals that are more affordable and accessible, and produce few to no side effects. By systematically applying rational scientific processes using research, development, and manufacturing, Sanctum Herbal can offer 100% organic nutraceuticals for antiviral and anti-inflammatory support in a fraction of the time it takes to bring a new pharmaceutical to market. To learn more, please visit https://sanctumherbal.com/
About 1606 Corp;
1606 Corp (OTC | CBDW) is an acquisition-based CBD distribution company with over 45 individual retail products. 1606 Corp acquires CBD companies to capture the required revenue to meet listing requirements on a national stock exchange. The company’s goal is to qualify for uplisting within the next 24 months. CBDW is a DTC “eligible security” that is freely tradable pursuant to U.S. securities laws and is otherwise qualified to be held at DTC and serviced by all market makers in U.S. and Canada. AN.
Rates of cannabidiol (CBD) usage in the United States is projected to surge in 2023, according to Stirling CBD. With recent studies suggesting as high as a 10% year-over-year (YoY) increase in usage, Stirling CBD predicts that 2023 will be a pivotal year for the industry as the widespread adoption of CBD-infused products is set to take place across the health and wellness, beauty, and food and beverage industries. Data from 2022 provides insight into the widespread nature of CBD-infused products. The Center for Advancing Health (CFAH) reported that 26% of Americans used CBD in 2022, and according to ClevelandClinic.org, 42% of people who take CBD use it for sleep-related reasons. It is also often marketed toward individuals struggling with anxiety, depression, quitting smoking, fitness recovery, and post-traumatic stress disorder (PTSD).
This press release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in several places in this release and include all statements that are not statements of historical fact regarding the intent, belief, or current expectations of 1606 Corp (the “Company”), its directors, or its officers concerning, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the Company’s control and which could, and likely will materially affect actual results, levels of activity, performance, or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company’s expectations include, but are not limited to, those factors that are disclosed under the heading “Risk Factors” and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities.
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