Sow Good Secures $20 Million Non-Convertible Private Placement Credit Facility to Fund Critical Minerals Strategy

Sow Good (Nasdaq: SOWG) executed a term sheet for a $20 million private placement line of credit with Sagol Advisors to fund working capital for its proposed Nachu Graphite acquisition and transition into critical minerals and battery anode development.

Rhea-AI Summary

Sow Good (Nasdaq: SOWG) executed a term sheet for a $20 million private placement line of credit with Sagol Advisors to fund working capital for its proposed Nachu Graphite acquisition and transition into critical minerals and battery anode development. The non-convertible facility allows draws up to $20 million, in tranches ≥$500,000 over a 24-month availability, matures 24 months from first draw, and bears interest at the greater of 10% per annum or WSJ Prime + 3.25%. Closing is subject to definitive documentation and customary conditions; full terms will be filed on Form 8-K upon closing.

Positive

• Non-dilutive $20 million credit facility available
• Flexible draws in tranches of ≥$500,000 over 24 months
• Facility explicitly non-convertible with no warrants or equity

Negative

• Interest rate floor of 10% per annum (or WSJ Prime + 3.25%)
• Facility closing subject to definitive documentation and conditions
• 24-month term from first draw may limit long-term runway

Argus May 5 session

-21.31% close to close Open Argus

Details

News Market Reaction – SOWG

In the May 5 session, SOWG declined 21.31%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -21.3% in the session following this news. A negative reaction despite this non-co...

Analysis

The stock dropped -21.3% in the session following this news. A negative reaction despite this non-convertible $20 million facility would fit a pattern where Sow Good’s strategic moves, including the Nachu Graphite acquisition, previously coincided with selling pressure. Investors have seen large drawdowns after the acquisition and reverse split announcements and may focus on balance-sheet risk, the sizeable $1,000,000,000 shelf capacity, and potential future equity issuance despite the facility’s non-dilutive structure.

Key Figures

Credit facility size: $20 million Availability period: 24 months Facility term: 24 months +5 more

Credit facility size

$20 million

Non-convertible line of credit term sheet

Availability period

24 months

Draw period for the facility

Facility term

24 months

Maturity from date of first draw

Minimum tranche size

$500,000

Minimum draw per tranche under facility

Interest floor

10% per annum

Minimum interest rate on drawn amounts

Interest spread

WSJ Prime + 3.25%

Alternative interest rate formula

Current price move

5.39%

Pre-news 24h price change for SOWG

52-week high

$31.80

Pre-news trading range high

Historical Context

5 past events · Latest: Apr 22

5 events

1. Apr 22

   Acquisition materials

   24h Move

   -8.3%

   Investor presentation on Nachu Graphite acquisition and planned technical reporting.

2. Apr 21

   Major acquisition deal

   24h Move

   -30.3%

   Definitive agreement to acquire Nachu Graphite Project and reposition business.

3. Apr 17

   Reverse stock split

   24h Move

   -21.3%

   15‑to‑1 reverse split aimed at regaining Nasdaq bid price compliance.

4. Jan 06

   Financing and asset sale

   24h Move

   +15.1%

   Completion of $6M private placement, asset sale and leadership changes.

5. Nov 14

   Quarterly earnings

   24h Move

   -2.4%

   Q3 2025 results with revenue drop, large losses and restructuring actions.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

private placement, line of credit, working capital, non-convertible, +4 more

8 terms

private placement financial

"has executed a term sheet for a $20 million Line of Credit (the “Facility”) on a private placement basis"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

line of credit financial

"executed a term sheet for a $20 million Line of Credit (the “Facility”)"

A line of credit is a flexible borrowing arrangement that lets a company draw money up to a preset limit, repay it, and borrow again as needed—similar to a business credit card or an emergency tap on a savings account. It matters to investors because it shows how a firm manages short-term cash needs and growth funding without taking a single large loan; access, cost, and attached conditions can affect liquidity, interest expenses and financial risk.

working capital financial

"provides non-dilutive, non-convertible working capital to support the proposed Nachu Graphite acquisition"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

non-convertible financial

"The Facility is not convertible into equity or any other securities of the Company."

A non-convertible security is a debt or preferred share that cannot be exchanged for a company’s common stock or another class of shares. For investors this matters because it offers a more predictable stream of income and no upside from equity appreciation—think of it as a fixed lease payment rather than a pie that can grow in size—while also avoiding the risk of dilution to existing shareholders.

wsj prime financial

"will accrue interest at the greater of (i) 10% per annum and (ii) WSJ Prime + 3.25%"

WSJ Prime is the prime lending rate published by The Wall Street Journal that represents the benchmark interest rate U.S. banks commonly use when lending to their most creditworthy customers. It matters to investors because it acts like a posted base price lenders add onto: changes in the WSJ Prime influence borrowing costs for companies and consumers, affect bank margins and corporate interest expenses, and can signal broader shifts in credit conditions and economic demand.

form 8-k regulatory

"Full material terms will be disclosed in a Form 8-K filed with the SEC"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

battery anode technical

"transition into a critical minerals and battery anode materials developer"

The battery anode is the electrode inside a rechargeable battery that absorbs and releases charged particles (like lithium ions) as the battery charges and discharges — think of it as a sponge that soaks up ions during charging and squeezes them out when powering a device. Anode material and design directly affect a battery’s energy capacity, charging speed, lifespan, safety and cost, so improvements or supply changes can have large effects on manufacturers’ competitiveness and investor valuations.

term sheet financial

"today announced that it has executed a term sheet for a $20 million Line of Credit"

A term sheet is a short, non-binding summary of the main points agreed between parties before a formal investment, loan, or acquisition is completed. Think of it as a blueprint that lists price, ownership split, key rights and conditions, and timelines so everyone knows the deal’s structure before lawyers draft final contracts. Investors care because it signals the likely economic terms, risks, and protections they will get and can make or break whether a transaction proceeds.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Flexible $20 million facility provides non-dilutive, non-convertible working capital to support the proposed Nachu Graphite acquisition and Sow Good's transition to a critical minerals and battery anode developer

IRVING, Texas, May 05, 2026 (GLOBE NEWSWIRE) -- Sow Good Inc. (Nasdaq: SOWG) (“Sow Good” or the “Company”), today announced that it has executed a term sheet for a $20 million Line of Credit (the “Facility”) on a private placement basis with Sagol Advisors, a New York based institutional investment manager. The Facility is subject to the negotiation and execution of definitive credit documentation and will provide working capital as the Company advances its proposed acquisition of the Nachu Graphite Project in Tanzania and its broader transition into critical minerals and battery anode materials.

Key Points

• $20 Million Available. The Facility gives the Company access to up to $20 million. Funds are drawn as needed. The Company only pays interest only on amounts actually drawn.
• Flexible Draw Mechanics. The Company can draw in multiple tranches of at least $500,000 over a 24-month availability period, with management controlling the pace and size of each draw.
• 24-Month Term. The Facility matures 24 months from the date of the first draw. The Company may repay early at any time, without penalty.
• Interest. The facility will accrue interest at the greater of (i) 10% per annum and (ii) WSJ Prime + 3.25%, in either case payable monthly.
• Use of Proceeds. Funds will support day-to-day operations and ongoing strategic initiatives, including activities related to the proposed Nachu Graphite acquisition.
• Subject to Definitive Documentation. Closing is subject to negotiation of final agreements and other customary closing conditions. Full material terms will be disclosed in a Form 8-K filed with the SEC upon closing of the private placement.
• Non-Convertible. The Facility is not convertible into equity or any other securities of the Company. The lender does not receive any warrants, conversion rights, or other equity participation

Why This Matters

In April 2026, Sow Good announced a proposed acquisition of the Nachu Graphite Project, an advanced-stage graphite development asset in southern Tanzania. If completed, that transaction would position Sow Good as a critical minerals and battery anode developer. The proposed transaction comes amid heightened focus on U.S. domestic supply chains for EV and energy storage materials. The Facility provides working capital runway to execute that transition.

Management Commentary

In connection with the Facility, Sam Goldberg, Chief Executive Officer of Sow Good commented: “This facility gives us the financial flexibility to execute our critical minerals strategy on our timeline, not the market's. With $20 million of committed capital available as we need it, we can advance the proposed Nachu acquisition and our broader transition with confidence.”

About Sow Good Inc.

Sow Good Inc. (Nasdaq: SOWG) is a U.S.-based company headquartered in Irving, Texas. The Company manufactures and markets freeze-dried candy and snack products under its Sow Good brand, sold through wholesale, retail, and direct-to-consumer channels in the United States.

In April 2026, Sow Good announced a proposed acquisition of the Nachu Graphite Project, an advanced-stage graphite development asset in the Ruangwa District of southern Tanzania. If completed, this acquisition would position Sow Good as a critical minerals and battery anode developer, while continuing its consumer products operations as a separate segment. The proposed acquisition is subject to stockholder approval, Tanzanian regulatory approvals, and other customary closing conditions.

More information is available at www.sowginc.com and in the Company’s filings with the U.S. Securities and Exchange Commission at www.sec.gov.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not statements of historical fact are forward-looking statements.

Forward-looking statements can often be identified by words such as: “may,” “could,” “will,” “would,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “seek,” “pursue,” “potential,” “continue,” “advance,” and similar expressions.

Forward-looking statements in this press release include, without limitation, statements about: (i) closing of the Facility and satisfaction of conditions; (ii) anticipated use of proceeds; (iii) the Company’s ability to draw funds; (iv) the proposed Nachu Graphite Project acquisition and its expected timeline and benefits; (v) the Company’s strategic direction as a critical minerals developer; and (vi) anticipated benefits of the Facility to the Company’s operations.

These statements reflect management’s current beliefs and expectations. They are not guarantees. Actual results may differ, sometimes materially, from those expressed or implied in any forward-looking statement.

Do not place undue reliance on any forward-looking statement. Forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update them except as required by applicable law.

For a more complete description of risks, see the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, available at www.sec.gov.

Contact Information

Sow Good Inc.
Sam Goldberg, Chief Executive Officer
sgoldberg@sowgoodinc.com
www.sowginc.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the key terms of Sow Good's $20M credit facility (SOWG)?

The facility provides up to $20 million, drawn in tranches ≥$500,000, with a 24-month availability and 24-month term from first draw. According to the company, interest is the greater of 10% per annum or WSJ Prime + 3.25%, payable monthly.

How will the SOWG credit facility be used to support the Nachu Graphite acquisition?

The facility will supply working capital for day-to-day operations and acquisition activities tied to Nachu Graphite. According to the company, funds will specifically support ongoing strategic initiatives and tasks required to advance the proposed acquisition.

Does the Sagol Advisors facility dilute Sow Good shareholders (SOWG)?

No: the facility is non-convertible and carries no warrants or equity participation. According to the company, the lender receives no conversion rights or other securities that would dilute shareholders upon closing.

When does the Sow Good (SOWG) facility mature and can it be repaid early?

The facility matures 24 months from the date of the first draw and allows early repayment without penalty. According to the company, management controls draw timing and the company may repay the balance at any time.

What is the cost of borrowing under the SOWG $20M line of credit?

Borrowing costs accrue at the greater of 10% per annum or WSJ Prime + 3.25%, with interest payable monthly. According to the company, interest is charged only on amounts actually drawn from the facility.