Business
Sow Good Inc. Announces $6.0 Million Private Placement, Strategic Asset Sale, and Leadership Transition to Support Continued Candy Operations and Future Growth
IRVING, Texas, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Sow Good Inc. (NASDAQ: SOWG) (“Sow Good” or the “Company”), a leading freeze-dried food and candy
About this update from Sow Good Inc.
[{"type":"text","content":"IRVING, Texas, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Sow Good Inc. (NASDAQ: SOWG) (“Sow Good” or the “Company”), a leading freeze-dried food and candy manufacturer, today announced the completion of a series of strategic transactions designed to strengthen its liquidity position, transition the business to a more asset-light operating model, and provide flexibility as the Company continues operating its candy business while evaluating growth opportunities and broader strategic alternatives. $6.0 Million Private Placement On December 31, 2025, Sow Good entered into a securities purchase agreement for a $6.0 million private placement with investor David Lazar. The financing will be completed in two tranches of $3.0 million each through the issuance of Series AA and Series AAA Convertible Non-Redeemable Preferred Stock. The first $3.0 million closing was completed on December 31, 2025. The second $3.0 million closing is expected to occur following receipt of required stockholder approvals and prior to March 31, 2026. Net proceeds from the private placement are expected to be used to fund ongoing operations, address outstanding liabilities, and preserve the Company’s ability to operate as a going concern while it pursues strategic initiatives. “Completing this financing provides Sow Good with critical runway and stability,” said David Lazar, Chief Executive Officer and Chair of the Board of Sow Good. “Our immediate focus is to continue serving customers and partners, stabilize the business, and evaluate opportunities to grow within the candy and snack category. At the same time, we will be disciplined and thoughtful as we explore additional strategic alternatives that can unlock long-term value for stockholders.” Strategic Asset Sale and Distribution Agreement Sow Good also completed the sale of a significant portion of the assets related to the Company's freeze-dried snacks and candy business to Trea Grove, LLC for total consideration of $1.5 million, payable in installments through March 31, 2026. The transaction includes the transfer of selected intellectual property, real property improvements, and other related assets, along with the assumption of specified liabilities. Following the asset sale, the Company entered into a distribution agreement appointing Trea Grove, LLC as the exclusive distributor of certain Sow Good products, in...