Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 12

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 12
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 current management. These provisions could potentially adversely affect the market prices of the Company’s securities.

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The Company has adopted a stockholder rights agreement that could make it difficult for a person or group of persons to acquire more than 11% of our issued and outstanding stock.

On July 30, 2024, in an effort to protect the interests of the Company and its stockholders by, among other things, guarding against hostile takeover attempts, abusive tactics, and other tactics potentially disadvantageous to the interests of the Company and its stockholders, the Company’s Board of Directors adopted a stockholder rights agreement pursuant to which it issued to the record holders of common stock one right in respect of each share of common stock held by such holders as of the close of business on August 12, 2024 (the “Rights Agreement”). In general terms, the Rights Agreement imposes significant dilution upon any person or group (other than the Company or certain related persons) that is or becomes the beneficial owner of 11% or more of the outstanding shares of common stock without the prior approval of the Board. The Rights Agreement could make it difficult for a stockholder or group of stockholders acting together to acquire more than 11% of the outstanding shares of our common stock without causing significant dilution to that stockholder or group’s ownership interest in the Company.

We may be subject to liability under the Securities Act for certain sales of our securities, including potential rescission rights.

Until our payment on December 17, 2024 of a cash dividend on outstanding shares of our common stock, we maintained a prior dividend reinvestment plan that was substantially similar to the Plan (the “Prior Plan”). The shares available under the Prior Plan were registered under the Securities Act of 1933, as amended (the “Securities Act”) on a Registration Statement on Form S-1 (File No. 333-217918) that was initially declared effective by the SEC on June 1, 2017 (the “Prior Registration Statement”). In May 2025, we discovered that we inadvertently sold and issued 2,407 shares of common stock to 279 participants (all of whom were existing stockholders) in the Prior Plan at a sales price of $14.2215 per share in connection with the reinvestment of their cash dividends paid on December 17, 2024, which shares were not registered under the Securities Act pursuant to the Prior Registration Statement. Accordingly, the offer and sale of those