$6 Million in Private Funding, Plus Key Asset Sales Support New Marketing Initiatives for US Based Maker of High Quality Freeze-Dried Snacks: Sow Good Inc. (NASDAQ: SOWG)

• U.S.-Based Leader in High Quality Freeze-Dried Snacks and Candies.

• Proprietary Freeze-Drying Technology and Vertically Integrated Manufacturing of Multiple Popular Snack Food Types, All Made in Texas.

• $6 Million Securities Purchase Agreement with Private Placement Investor and New CEO David Lazar.

• Asset SALES Related to Freeze-Dried Snacks and Candy Business to Trea Grove, LLC for Total Consideration of $1.5 Million.

• Distribution Agreement Appointing Trea Grove, LLC as Exclusive Distributor of Key Products Including Fruits, Snacks and Candy.

• SOWG will Continue Selling and Distributing its Candy Products in the Ordinary Course of Business.

• Private-Label Partnership with a 600-Store National Retail Chain to Launch Caramel Crunch Line, Shipping in April 2026.

• Plans for Two New Flavors with Albertsons Companies in the Summer of 2026.

• $2 Million Capital Raise with Co-Founders Claudia and Ira Goldfarb Personally Committing $1 Million.

• Facility Consolidation, Operational Streamlining and Payroll Optimization Yield Over $5 Million in Annualized Savings.

Sow Good Inc. (NASDAQ: SOWG) is a U.S.-based leader in freeze-dried snacks and candies, driven by a commitment to quality, innovation, and excellence. The SOWG proprietary freeze-drying technology and vertically integrated manufacturing platform power some of the most exciting products in the better-for-you and indulgent snack categories all made in Texas.

$6.0 Million Private Placement, Strategic Asset Sale, and Leadership Transition to Support Continued Candy Operations and Future Growth

On January 6th SOWG 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 SOWG continues operating its candy business while evaluating growth opportunities and broader strategic alternatives.

On December 31, 2025, SOWG 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 SOWG stockholder approvals and prior to March 31, 2026.

SOWG 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, SOWG entered into a distribution agreement appointing Trea Grove, LLC as the exclusive distributor of certain SOWG products, including fruits, snacks, and candy, through July 31, 2026, unless extended. Under the agreement, the distributor will manage customer communications, logistics, fulfillment, billing, and collections, and will remit 10% of gross receipts from product sales to the Company. These transactions do not represent a liquidation or cessation of operations. SOWG will continue selling and distributing its candy products in the ordinary course of business.

Board and Management Updates

David Lazar was appointed SOWG Chief Executive Officer and Chair of the Board.

Claudia Goldfarb stepped down as Chief Executive Officer and remains with SOWG as Chief Operating Officer and a member of the Board.

David Lazar and David Natan were elected to the SOWG Board of Directors.

SOWG will continue operating its candy business while evaluating growth opportunities within the candy and snack industry. SOWG will also assess other strategic alternatives, including potential partnerships, acquisitions, or additional corporate transactions, with the goal of strengthening its financial position and creating long-term stockholder value.

Major Retail Wins, Additional Founder Funding in Furtherance of a Crypto Asset Strategy, and $5 Million Operational Streamlining

On October 27th SOWG provided a business update announcing a major retail customer win, additional funding in pursuit of a crypto asset strategy, and additional cost optimization measures that significantly reduce fixed overhead.

Major Retail Expansions and SKU Launches: 600-Store Caramel Crunch Launch

SOWG announced a private-label partnership with a 600-store national retail chain to launch its Caramel Crunch line, shipping in April 2026. Caramel Crunch—crafted using SOWG proprietary long-cycle freeze-drying technology—delivers a rich, buttery caramel flavor with a uniquely light, crisp texture. Caramel Crunch is the first SOWG fully vertically integrated SKU made with zero artificial dyes or flavors. This cleaner ingredient treat allows SOWG to penetrate a new retail category that has been previously inaccessible for many freeze-dried companies.

In addition, SOWG plans two new flavors with Albertsons Companies in the summer of 2026, featured in Sow Good-branded displays that will also showcase ten of the company’s top-performing SKUs. The upcoming launch of these products has already garnered exceptional retailer enthusiasm and represents SOWG largest national rollouts to date, further solidifying its position as a category innovator.

$2 Million Founder-Led Working Capital Infusion

SOWG received commitments for a $2 million capital raise, with co-founders Claudia and Ira Goldfarb personally committing $1 million.

Facility Consolidation, Operational Streamlining, and Payroll Optimization Yield Over $5 Million in Annualized Savings

SOWG negotiated amendments to its Mockingbird and Rock Quarry facility leases, streamlining operating footprint resulting in more than $5 million in annualized rent savings. These actions mark a major milestone in the SOWG strategic realignment, reducing fixed expenses while maintaining production capacity through enhanced efficiency and automation.

Complementing these real estate savings, SOWG implemented workforce efficiencies that reduce its monthly payroll by approximately $40,000 while retaining essential leadership, quality assurance, and operations personnel. These adjustments align with the SOWG long-term focus on vertical integration, automation, and disciplined capital management.

For more information on SOWG visit: www.sowginc.com

Email: [email protected]

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