Sow Good Inc. Prices $12Million Public OfferingAhead of Nasdaq Debut

Sow Good Inc. has priced its public offering of 1.2 million shares at $10.00 per share, expecting to raise $12 million in gross proceeds. The company will list its common stock on the Nasdaq Capital Market under the ticker symbol "SOWG" on May 2, 2024.

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Rizwan Shah
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Sow Good Inc. Prices $12Million Public OfferingAhead of Nasdaq Debut

Sow Good Inc. Prices $12Million Public OfferingAhead of Nasdaq Debut

Sow Good Inc., a pioneering company in the freeze-dried candy and snack industry, has announced the pricing of its underwritten public offering. The company is offering 1,200,000 shares of common stock at $10.00 per share, with the expectation of yielding approximately $12 million in gross proceeds before offering expenses and underwriting discounts and commissions.

Why this matters: This public offering and Nasdaq listing demonstrate the growing interest in innovative snack companies, potentially paving the way for other startups in the industry to access capital markets. As Sow Good expands its operations and market share, it may influence consumer preferences and drive changes in the broader snack industry.

Significantly, Sow Good offered 0.3 million more shares than initially anticipated. Theoffering priceof $10.00 per share is below the last close of its shares on the OTC, which was $10.98. The company has granted the underwriters a 30-day option to purchase up to an additional 180,000 shares of common stock. The offering is expected to close on May 6, 2024, subject to customary closing conditions.

On May 1, 2024, Sow Good received approval to list its common stock on the Nasdaq Capital Market stock exchange under the ticker symbol"SOWG". Trading on Nasdaq is expected to commence on May 2, 2024. This milestone marks a major breakthrough for the company as it transitions from the OTC market to a major stock exchange.

Sow Good began commercializing its products in the first quarter of 2023 and employs an omnichannel strategy primarily focused on wholesale and retail channels. As of December 31, 2023, the company had 18 SKUs spanning two product lines, which were sold in over 5,850 brick-and-mortar retail outlets in the US. The successful public offering and upcoming Nasdaq listing demonstrate the growing interest in Sow Good's innovative freeze-dried candy and snack offerings.

The company intends to use the net proceeds from this offering for general corporate purposes, which may include capital expenditures for the expansion of production capacity, funding working and growth capital, the expansion of the company's sales and marketing function, and the reduction of certain tranches of indebtedness. These strategic investments will be vital in supporting Sow Good's growth and increasing its market share in the highly competitive snack industry.

Roth Capital Partners is sole book-running manager for the offering, while Craig-Hallum is co-manager. A registration statement on Form S-1 relating to these securities was declared effective by theU.S. Securities and Exchange Commission (SEC)on May 1, 2024.

The successful pricing of Sow Good's public offering and its upcoming listing on the Nasdaq Capital Market represent major milestones for the company. With the capital raised from the offering and its innovative product offerings, Sow Good is well-positioned to continue its growth trajectory and expand its presence in the snack industry. The company's new chapter as a publicly-traded entity will be closely followed by investors and consumers alike.

Key Takeaways

  • Sow Good Inc. prices public offering at $10.00 per share, expecting $12M in gross proceeds.
  • Company to list on Nasdaq Capital Market under ticker symbol "SOWG" on May 2, 2024.
  • Sow Good offered 0.3M more shares than initially anticipated, with 30-day option for 180,000 more.
  • Proceeds to be used for production capacity expansion, sales and marketing, and debt reduction.
  • Sow Good's innovative freeze-dried candy and snack offerings drive growth in competitive snack industry.