SOWG · Sow Good Inc.

Sow Good Inc. has secured a critical non-dilutive funding mechanism through a non-binding term sheet for a $20 million line of credit from Sagol Advisors, a New York-based institutional investor. This facility offers substantial financial flexibility, allowing draws as needed in minimum $500,000 tranches over 24 months, with interest accruing only on utilized amounts at a rate of the greater of 10% or WSJ Prime plus 3.25%. The 24-month maturity from first draw, combined with penalty-free early repayment, minimizes long-term commitment risks while providing ample runway for strategic execution. Importantly, the structure is entirely non-convertible, preserving shareholder equity without dilution, warrants, or other equity-linked features. Proceeds are earmarked for operational needs and advancing the proposed acquisition of the Nachu Graphite Project in Tanzania's Ruangwa District, an advanced-stage asset that could pivot Sow Good into critical minerals and battery anode development alongside its existing freeze-dried candy business. CEO Sam Goldberg emphasized the facility's role in enabling execution on the company's timeline amid U.S. supply chain focus for EV materials. Closing remains contingent on definitive agreements and customary conditions, with full terms to be disclosed in a subsequent 8-K. This positions Sow Good to navigate its transformative shift with committed capital support.