Sow Good Inc. (NASDAQ:SOWG) plunged 59.10% in after-hours trading on Tuesday, falling to $0.16, after the freeze-dried candy manufacturer disclosed a $3 million private securities offering and significant leadership changes in a Form 8-K filing with the U.S. Securities and Exchange Commission.
SOWG closed the regular session at $0.40, down 2.72%.
Overview
Sow Good stock has declined sharply over the past year, trading near its 52-week low of $0.23 compared to a high of $2.12. The latest after-hours sell-off comes as investors react to dilution risks and major corporate restructuring.
Dilution Concerns
The company issued 1.5 million shares of Series AAA Convertible Redeemable Preferred Stock for $3 million. The preferred shares are convertible into common stock at a fixed conversion price, subject to …
