Sow Good Inc. (NASDAQ: SOWG) announced it has executed a term sheet for a $20 million line of credit with Sagol Advisors, a New York-based institutional investment manager. The facility will provide working capital as the company advances its proposed acquisition of the Nachu Graphite Project in Tanzania.

The non-convertible credit facility allows Sow Good to draw funds as needed over a 24-month availability period, with minimum draws of $500,000. The company pays interest only on amounts actually drawn, at the greater of 10% per annum or WSJ Prime plus 3.25%, payable monthly. The facility matures 24 months from the first draw date, with early repayment allowed without penalty.

The facility does not convert to equity or include warrants or other equity participation for the lender. Closing remains subject to negotiation of final agreements and customary closing conditions.

Sow Good, headquartered in Irving, Texas, currently manufactures and markets freeze-dried candy and snack products. In April 2026, the company announced a proposed acquisition of the Nachu Graphite Project, an advanced-stage graphite development asset in Tanzania's Ruangwa District. The proposed transaction would position Sow Good as a critical minerals and battery anode developer while maintaining its consumer products operations.

"This facility gives us the financial flexibility to execute our critical minerals strategy on our timeline, not the market's," said Sam Goldberg, Chief Executive Officer of Sow Good.

The proposed Nachu acquisition requires stockholder approval, Tanzanian regulatory approvals, and other customary closing conditions. Full material terms of the credit facility will be disclosed in a Form 8-K filing with the SEC upon closing.