1606 Corp, 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
1606 Corp acquires and develops CBD brands including Truz and CBD Singlez. 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.
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. 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.