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Prime Tex Group Signs Letter of Intent to Evaluate East Texas Biomass Power and Data Center Project

Summary

Prime Tex Group, USA has signed a non-binding Letter of Intent (LOI) with 1606 Corp. (OTCID: CBDW) to evaluate a potential acquisition or assignment of 1606’s rights in an approximately 132-acre biomass power generation and data center development property in Texas. The LOI, dated September 6, 2026, marks an early but significant step in Prime Tex’s plan to extend its East Texas timber operations into renewable power generation.

About the Opportunity

The property includes an existing biomass power generation facility and supporting infrastructure, along with land suited to data center and high-performance computing use. 1606 Corp. holds contractual rights to the site under a Purchase and Sale Agreement, and Prime Tex will now evaluate whether acquiring or taking assignment of those rights fits its long-term strategy.

During the evaluation period, the two companies may share information on the property, existing power infrastructure, the generation facility, title, permits and related project matters.

Why It Fits Prime Tex’s Strategy

Prime Tex’s U.S. growth is built on timber and wood processing, and biomass power is a natural next link in that chain.

• Kountze, Hardin County, Texas: Through Prime Tex Lumber LLC, the group has acquired an operating sawmill producing Southern Yellow Pine lumber and industrial timber products.

• Kennard, Texas: Prime Tex Inc. is building a modern sawmill that is expected to begin production by the end of 2026.
• A ready fuel supply: Both mills generate large volumes of wood chips, a proven fuel source for biomass power.

Alongside sawmilling, Prime Tex is active in biochar production and biomass pellet facilities that turn forestry and sawmill byproducts into useful products. A biomass power plant would let the group put more of those byproducts to productive use while producing renewable energy, closing the loop from forest to lumber to power.

What Happens Next

The LOI is an expression of preliminary interest. It is non-binding and non-exclusive, and any transaction depends on Prime Tex’s due diligence, further negotiation and the signing of definitive agreements. The LOI is set to expire on December 31, 2026 unless the parties extend it in writing.

Prime Tex will share further updates as the evaluation progresses.

About Prime Tex Group

Prime Tex Group is an industrial group expanding its presence in the U.S. timber, wood processing and renewable energy sectors. Its operations in East Texas span sawmilling, biochar and biomass pellet production, with active plans to acquire additional mills and forest resources and to move into biomass power generation.

This article contains forward-looking statements about a potential transaction. The LOI is non-binding, and there is no assurance that a definitive agreement will be signed or that any transaction will be completed.