SOWG News & Events

In connection with the transactions: David Lazar was appointed CEO and Chair of the Board. Claudia Goldfarb stepped down as Chief Executive Officer and remains with the Company as COO and a member of the Board. David Lazar and David Natan were elected to the Board of Directors. Joe Mueller and Chris Ludeman resigned from the Board in connection with the transactions. Ira Goldfarb resigned as Executive Chairman and Chair of the Board. Following the completion of these transactions, Sow Good will continue operating its candy business while evaluating growth opportunities within the candy and snack industry. The Company 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.

Sow Good 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. On December 31, Sow Good entered into a securities purchase agreement for a $6M private placement with investor David Lazar. The financing will be completed in two tranches of $3M each through the issuance of Series AA and Series AAA Convertible Non-Redeemable Preferred Stock. The first $3M closing was completed on December 31. The second $3M 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. 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 for total consideration of $1.5M, 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 as the exclusive distributor of certain Sow Good 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. Sow Good will continue selling and distributing its candy products in the ordinary course of business.

Reports Q3 revenue $1.55M vs $3.55M last year. "Q3 2025 was a quarter of steady progress and operational strengthening as we continued to position Sow Good for long-term sustainable growth," said Claudia Goldfarb, CEO of Sow Good. "The decisive actions we've taken over the past several months have simplified our footprint, reduced fixed costs, and enhanced efficiency across the organization. We've now completely vacated our Mockingbird facility, reducing our footprint by over 50,000 square feet and delivering immediate savings, and we will fully vacate our Rock Quarry facility by the end of January, reducing our footprint by more than 320,000 square feet. Together with lease amendments and payroll optimization, these efforts represent over $5 million in annualized savings and a leaner, more agile platform ready to scale efficiently."

Sow Good 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. Sow Good announced a new private-label partnership with a 600-store national retail chain to launch its Caramel Crunch line, shipping in April 2026. In addition, Sow Good will launch 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 Sow Good's largest national rollouts to date, further solidifying Sow Good's position as a category innovator. To support working capital needs in connection to a digital asset strategy, Sow Good has received commitments for a $2M capital raise, with co-founders Claudia and Ira Goldfarb personally committing $1M. The commitments are expected to close in early November. Additionally, Sow Good negotiated amendments to its Mockingbird and Rock Quarry facility leases, streamlining operating footprint resulting in more than $5M in annualized rent savings. These actions mark a major milestone in Sow Good's strategic realignment, reducing fixed expenses while maintaining production capacity through enhanced efficiency and automation. Complementing these real estate savings, Sow Good has 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 company's long-term focus on vertical integration, automation, and disciplined capital management