1606 Corp Secures $20,000,000 in Financing For The Purpose of Acquiring CBD Businesses
February 17th, 2023
App, News, Top News
PHOENIX, Feb. 16, 2023 /PRNewswire/ — 1606 Corp (OTC: CBDW), an acquisition-based CBD + Hemp retail product distribution company, announces that 1606 Corporation has entered into an Equity Financing Agreement and Registration Rights with GHS Investments LLC. Under the terms of the Equity Financing Agreement, GHS agreed to provide 1606 Corp with, up to $20,000,000, to be used for acquisition financing after the registration of an S-1 filed with the U.S. Securities and Exchange Commission.
1606 Corp is pleased with the terms of the deal disclosing that the purchase price of all equity by GHS shall be eighty percent (80%) of the market price. Following an up-list to the NASDAQ or an equivalent national exchange by the Registrant, the purchase price of equity related to this registration will be purchased at ninety percent (90%) of the market price, subject to a floor of $2.00 per share, below which the company shall not deliver any puts.
The use of funds for the $20,000,000 equity financing is earmarked to acquire and develop additional CBD brands, distribution networks, and businesses. By building the portfolio of CBD businesses through acquisitions, 1606 Corp aims to add shareholder value by utilizing this equity line of credit.
1606 Corp is committed to adding shareholder value and believes that this is a great step, along with funding for acquisitions, to do that.
“We’re moving fast. Now that we have our feet underneath us since receiving the ticker symbol CBDW and now we’re taking definitive steps toward adding shareholder value. This $20 Million-dollar financing is going to allow us to buy profitable CBD companies and we’ll be a great investment opportunity for investors around the world.” Said CEO and Chairman Greg Lambrecht
About 1606 Corp;
1606 Corp acquires and develops CBD brands including Truz and CBD Singlez, (www.1606hemp.com). The company utilizes an acquisition model aimed at consolidating the fragmented CBD industry. 1606 Corp has a primary focus on Hemp and CBD products, brand development, and establishing distribution channels. 1606 Corp. was awarded the ticker symbol CBDW on January 12th, 2022 and began trading on the OTC Market on January 17th, 2023.
About the CBD Industry;
The Cannabidiol (CBD) market accounted for USD 12.8 billion in 2021 and is estimated to grow with a 21.7% CAGR between 2022 and 2028, according to Grand view research (link). The global cannabidiol (CBD) market size was valued at $5.18 billion in 2021 and is expected to expand, at a compounded annual growth rate (CAGR) of 16.8% from 2022 to 2030. Cannabidiol (CBD) is a chemical compound that is found in the cannabis Sativa plant, and is extracted from hemp or cannabis, generally from hemp due to its naturally high cannabidiol (CBD) content…
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 a number of 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 with respect to, 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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