Sow Good (NASDAQ:SOWG) announced a transformative strategic shift today, entering into a definitive agreement to acquire 100% of the Tanzanian subsidiaries holding the Nachu Graphite Project.
The deal, valued at approximately AUD$150 million (US$107 million), will be satisfied entirely through the issuance of Sow Good common stock, positioning the Irving, Texas-based company as a key player in the global lithium-ion battery supply chain.
The acquisition targets Uranex Tanzania Limited and Magnis Technologies (Tanzania) Limited from Ryzon Materials Limited.
Upon closing, Sow Good intends to advance the Nachu Project toward construction and production while maintaining its existing freeze-dried snack business as a separate consumer products segment.
Located in the Lindi Region of Southern Tanzania, the Nachu Graphite Project is an advanced-stage development asset with a reported 15.5-year mine life.
The project features a completed Bankable Feasibility Study (JORC 2012) and holds a rare Special Economic Zone license for the production of advanced graphite materials.
Crucially, the asset includes a binding offtake agreement with a Tier-1 U.S. electric vehicle and energy storage manufacturer for the supply of high-purity natural flake graphite.
The transaction remains subject to customary closing conditions, including shareholder approval and Tanzanian regulatory clearances.
To facilitate the merger and meet exchange requirements, Sow Good recently approved a 15-to-1 reverse stock split, effective after the market close on April 23, 2026.
Following the close of the deal, which has a "sunset date" of October 15, 2026, Sow Good plans to leverage the Nachu Project’s high-purity feedstock to supply non-Chinese battery anode material to the global market.