Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 14

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 14
---
 our board of directors. As of the date of this prospectus, our board of directors intends to offer a 5.0% discount. |

| ● | Safekeeping. Participants avoid safekeeping requirements and record keeping costs for shares credited to their accounts through the free custodial service and reporting provisions of the Plan. Statements of account will be furnished to participants no less frequently than semi-annually to provide simplified record keeping. |

Disadvantages

| 3. | What are the disadvantages of the Plan? |

The disadvantages of the Plan are as follows:

| ● | General Investment Risk. Your investment in shares of common stock purchased under the Plan is not different from any investment in shares that you purchase through a broker-dealer or in a private transaction. We cannot assure you of a profit or protect against a loss on shares that you may purchase. You will bear the risk of loss and enjoy the benefits of any gain from changes in the fair market value of the common stock with respect to shares purchased under the Plan. |

| ● | Purchase Price Determination. Participants will have no control over the purchase price or the timing of the purchase of Plan shares. Participants cannot designate a specific price or a specific date at which to purchase shares of common stock. |

| ● | Reinvested Dividends and Any Discount Will Generally be Treated as Dividends for Tax Purposes. When a cash dividend is paid and reinvested in additional shares of common stock, participants will generally be treated for Federal income tax purposes as having received that dividend even though they did not actually receive cash. In addition, if we offer a discount on the purchase price, participants will generally be treated for Federal income tax purposes as having received an additional distribution in the amount of that discount. For most taxpayers, all or a substantial portion of both the dividend and the discount will have to be reported as gross income. |

| ● | Purchase Price May be Higher than Market Price. The price at which shares of common stock will be purchased under the Plan will be determined by our board of directors based on its determination of the fair market value of a share of common stock as of the date each dividend is declared, which, under Maryland law, may be up to 90 days prior to the dividend payment date. As a result, the purchase price under the Plan may exceed the price at which shares are trading in the open market on the investment date. |

Administration

| 4. | Who administers the Plan? |

The Administrator of the Plan is Equ