Sow Good Inc. Announces $6.0 Million Private Placement, Strategic Asset Sale, and Leadership Transition to Support Continued Candy Operations and Future Growth

Core Viewpoint - Sow Good Inc. has completed a series of strategic transactions aimed at enhancing its liquidity, transitioning to a more asset-light model, and exploring growth opportunities in the candy business while evaluating broader strategic alternatives [1]. Financing and Capital Structure - The company entered into a $6.0 million private placement agreement with investor David Lazar, structured in two tranches of $3.0 million each through the issuance of Series AA and Series AAA Convertible Non-Redeemable Preferred Stock [2]. - The first tranche of $3.0 million was completed on December 31, 2025, with the second tranche expected to close before March 31, 2026, pending stockholder approvals [3]. Asset Management and Strategic Transactions - Sow Good sold a significant portion of its freeze-dried snacks and candy business assets to Trea Grove, LLC for $1.5 million, payable in installments through March 31, 2026 [5]. - A distribution agreement was established with Trea Grove, LLC, appointing them as the exclusive distributor for certain products until July 31, 2026, with the distributor managing various operational aspects and remitting 10% of gross receipts to the company [6]. Business Operations and Future Strategy - The transactions do not indicate a liquidation; the company will continue its candy business operations [7]. - The transition allows Sow Good to remain active in the candy market while significantly reducing fixed operating costs, positioning the company for growth opportunities and strategic assessments [8]. Leadership Changes - David Lazar has been appointed as Chief Executive Officer and Chair of the Board, while Claudia Goldfarb remains as Chief Operating Officer [10]. - Several board members have changed, with new appointments and resignations occurring in connection with the recent transactions [10]. Strategic Focus - Following these transactions, the company will continue to operate its candy business and assess growth opportunities within the candy and snack industry, including potential partnerships and acquisitions to strengthen its financial position [11].