$6 Million Funding Secured as Retail Expansion, Operational Streamlining, and Asset-Light Strategy Position the Company for Accelerated Growth $SOWG

IRVING, Texas - Rezul -- Sow Good Inc. (N A S D A Q: SOWG), a U.S.-based innovator in premium freeze-dried snacks and candies, is entering a powerful new phase of strategic transformation fueled by fresh capital, operational efficiency, and expanding retail distribution. Backed by proprietary freeze-drying technology and a vertically integrated manufacturing platform based entirely in Texas, the company is rapidly strengthening its position within the fast-growing better-for-you and indulgent snack categories.

Through a combination of private financing, asset optimization, and retail expansion, Sow Good is building a streamlined, capital-efficient platform designed to unlock long-term shareholder value while continuing to deliver innovative snack products to consumers nationwide.

Strategic $6 Million Private Placement Strengthens Liquidity

A key catalyst behind Sow Good's evolving strategy is a $6.0 million private placement investment led by entrepreneur and investor David Lazar, who now serves as Chief Executive Officer and Chairman of the Board.

The securities purchase agreement, executed on December 31, 2025, provides funding in two tranches of $3.0 million through the issuance of Series AA and Series AAA Convertible Non-Redeemable Preferred Stock. The initial tranche closed at year-end, while the second is expected to close following shareholder approvals prior to March 31, 2026.

This capital infusion significantly enhances the company's financial flexibility, providing the resources needed to support operations, pursue growth opportunities, and evaluate broader strategic initiatives.

Strategic Asset Sale and Distribution Partnership

Sow Good has also taken decisive steps to transition toward a more asset-light operating model. The company completed the sale of selected assets related to its freeze-dried snacks and candy business to Trea Grove, LLC for total consideration of $1.5 million, payable through March 31, 2026.

The transaction includes certain intellectual property, facility improvements, and related operational assets, while Trea Grove assumes specified liabilities. Importantly, the deal does not represent a cessation of operations.

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Instead, Sow Good simultaneously entered into a distribution agreement appointing Trea Grove as the exclusive distributor for key products—including fruits, snacks, and candy—through July 31, 2026 unless extended.

Under this agreement, Trea Grove manages logistics, customer communications, fulfillment, billing, and collections, while Sow Good receives 10% of gross receipts from product sales. The company will continue selling and distributing its candy products in the ordinary course of business.

Major Retail Breakthrough: 600-Store National Launch

Sow Good is also gaining major traction with large-scale retail partners. The company recently secured a private-label partnership with a 600-store national retail chain for the launch of its innovative Caramel Crunch product line, with shipments scheduled to begin in April 2026.

Caramel Crunch is produced using the company's proprietary long-cycle freeze-drying technology, delivering a rich buttery caramel taste combined with an ultra-light, crisp texture. The product is also notable for containing zero artificial dyes or flavors, positioning it as a cleaner indulgent snack option.

This fully vertically integrated SKU opens the door to a retail category that has historically been difficult for freeze-dried snack companies to penetrate.

Albertsons Expansion Adds National Momentum

Further strengthening its retail footprint, Sow Good is preparing two new flavor launches with Albertsons Companies in the summer of 2026.

These products will be featured in Sow Good-branded retail displays showcasing ten of the company's top-performing SKUs. Retailer enthusiasm surrounding the rollout has been exceptionally strong and represents one of the company's largest national expansions to date.

The initiative reinforces Sow Good's growing reputation as a category innovator capable of delivering differentiated snack products at scale.

Founder-Led Capital Commitment Demonstrates Confidence

In addition to institutional investment, Sow Good's founders are demonstrating strong personal confidence in the company's future.

Co-founders Claudia and Ira Goldfarb committed $1 million of their own capital as part of a $2 million working capital raise designed to support operational initiatives and strategic exploration, including the evaluation of a potential crypto asset strategy.

This founder-led investment underscores management's alignment with shareholders and long-term belief in the company's evolving strategy.

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Operational Streamlining Delivers Over $5 Million in Annual Savings

Sow Good has also implemented decisive cost optimization measures aimed at strengthening its financial foundation.

Through renegotiated lease agreements for its Mockingbird and Rock Quarry facilities, the company has consolidated its operational footprint while preserving production capacity through enhanced efficiency and automation. These initiatives alone are expected to generate more than $5 million in annualized rent savings.

Additional workforce optimization has reduced monthly payroll expenses by approximately $40,000 while maintaining key leadership, quality assurance, and operational personnel essential to the company's continued growth.

Together, these changes dramatically lower fixed overhead while reinforcing Sow Good's commitment to disciplined capital management and vertical integration.

Leadership Transformation and Strategic Direction

As part of the company's transformation, David Lazar has assumed the role of Chief Executive Officer and Chairman of the Board, bringing extensive experience in corporate restructuring and value creation.

Co-founder Claudia Goldfarb has transitioned from CEO to Chief Operating Officer and remains a member of the Board of Directors, ensuring continuity of operational expertise and product innovation.

David Lazar and David Natan have also joined the Board, strengthening governance and strategic oversight as the company pursues new opportunities within the snack and candy sectors.

Positioned for the Next Stage of Growth

With fresh capital, expanded retail partnerships, a streamlined cost structure, and an asset-light distribution strategy, Sow Good is positioning itself to capitalize on rising consumer demand for innovative snack products.

The company will continue operating its candy business while actively exploring partnerships, acquisitions, and other strategic alternatives aimed at strengthening its financial position and driving long-term stockholder value.

Backed by proprietary technology, vertically integrated manufacturing, and growing retail traction, Sow Good Inc. is emerging as a dynamic player in the rapidly expanding freeze-dried snack category.

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

Media Contact:
Company Name:  Sow Good Inc. (N A S D A Q: SOWG)
Contact: David Lazar, CEO
Email: ir@sowginc.com
Phone: (214) 623-6055
Country: United States
Website: www.sowginc.com

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