Sow Good Announces Successful Fundraising and New Board Member

Rhea-AI Summary

Sow Good successfully raised over $2.5M through a private placement of 631,250 shares on February 5, 2021. The funding will support capital expenditures and operational investments as the company prepares to launch its direct-to-consumer website and begin production at its Irving, Texas facility. With $4.3M in liquidity as of January 31, the company is positioned for growth in 2021. Additionally, Chris Ludeman has joined the Board of Directors, bringing extensive capital market experience. The company thanked outgoing board member Benjamin Oehler for his service.

Positive

• Raised over $2.5M in a private placement to fund growth.
• Existing liquidity of $4.3M enhances financial flexibility.
• Appointment of Chris Ludeman strengthens capital raising efforts.

Negative

• Concerns about continuity with the resignation of Benjamin Oehler from the Board.

IRVING, Texas, Feb. 5, 2021 /PRNewswire/ -- On February 5, 2021, Sow Good successfully raised over $2.5M of capital from the sale of 631,250 newly-issued shares in a private placement. Proceeds will be used to fund capital expenditures and working capital investment as Sow Good nears the commencement of production and launch of its direct-to-consumer website. When combined with existing liquidity as of January 31^st, Sow Good now has $4.3M of cash and liquid investments.

"Investor interest in Sow Good exceeded our expectations," said Brad Burke, Chief Financial Officer. "Sow Good's ample liquidity will provide financial flexibility and promote robust growth during 2021."

Claudia Goldfarb, Chief Executive Officer, stated, "We are incredibly excited about Sow Good's progress and the momentum that this capital boost adds. We are well-positioned to launch our products and direct-to-consumer website by the end of the quarter, as well as complete the build-out of our facility."

Investors in the private placement include existing management and directors, in addition to unaffiliated accredited investors.

Chris Ludeman, President of CBRE Capital Markets, Joins Sow Good Board

On January 27^th, Sow Good appointed Chris Ludeman as a member of the Board of Directors and Chairperson of the Audit Committee. Mr. Ludeman is a renowned commercial real estate executive, serving as the Global President of Capital Markets for CBRE, the world-leader in commercial real estate capital markets.

During his more than three decades in the real estate services industry and with CBRE, Mr. Ludeman has served in several key management roles, including serving as the President of various businesses including Brokerage, Transaction Management, and Global Corporate Services. In these roles, Mr. Ludeman was responsible for all transaction units in the Americas and corporate outsourcing functions, such as facilities management, project management, lease administration, transaction management, and research and consulting.

"We are delighted to welcome Chris Ludeman to Sow Good's board," said Ira Goldfarb, Executive Chairman. He continued, "Chris's extensive experience with capital markets and institutional investors will strengthen Sow Good's future capital raising efforts, which will support our planned growth and create value for our shareholders."

On January 27^th, Benjamin Oehler tendered his resignation from Sow Good's Board of Directors and Audit Committee. The Company thanks him for his years of service.

Advisors

The Company acted as its own financial advisor in the transaction. Stinson LLP acted as the Company's legal advisor.

Sow Good Inc. (OTCQB:SOWG) is dedicated to producing the highest quality and most nutritious products in the freeze-dried food industry while building a brand that celebrates the importance of sustainability, the environment and our communities.

On October 1, 2020, the Company finalized its acquisition of the freeze-dried food business assets from S-FDF, LLC. Production is expected to begin at the Irving, Texas based 20,000 square foot state-of-the art facility in Q1 of 2021. Additional announcements regarding the Company's website and product launch will be forthcoming.

Forward Looking Statements
Certain statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties not known or disclosed herein that could cause actual results to differ materially from those expressed herein. These statements may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect management's current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, conditions of the securities markets, our ability to raise capital or have access to debt financing, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices and other risks inherent in the Company's businesses that are detailed in the Company's Securities and Exchange Commission ("SEC") filings. Readers are encouraged to review these risks in the Company's SEC filings.

View original content:http://www.prnewswire.com/news-releases/sow-good-announces-successful-fundraising-and-new-board-member-301223294.html

SOURCE Sow Good Inc.

FAQ

What was the amount raised by Sow Good on February 5, 2021?

Sow Good raised over $2.5M through the sale of 631,250 shares.

Who is the new board member appointed by Sow Good?

Chris Ludeman was appointed as a member of the Board of Directors.

What is the purpose of the funds raised by Sow Good?

The funds will be used for capital expenditures and to support operational investments.

What is the current liquidity of Sow Good as of January 31, 2021?

Sow Good has $4.3M in cash and liquid investments.

What strategic changes are happening at Sow Good?

The company is launching its direct-to-consumer website and beginning production.