Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 6

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 6
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 only activity was paying claims for events that occurred prior to November 7, 2022.

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The Company and the Bank are extensively regulated under federal and state laws, and the Insurance Subsidiary is extensively regulated under Tennessee law. The regulation of financial holding companies and banks is intended primarily for the protection of depositors and the deposit insurance fund and not for the benefit of security holders, and the regulation of insurance companies is intended primarily for the protection of insureds.

About the Plan and this Offering

This prospectus relates to our offer and sale of up to 500,000 shares of our common stock to eligible stockholders through our 2025 Dividend Reinvestment Plan. The Plan provides stockholders with a convenient and economical way to (i) reinvest cash dividends paid on their shares of our common stock in additional shares and (ii) sell the shares held in their Plan accounts. The Plan has various other features from which to choose to meet your investment needs, and you should carefully read this entire prospectus.

The shares of our common stock purchased under the Plan will be newly issued shares. Shares will be sold at a purchase price equal to the fair market value of a share of common stock as determined by our board of directors, less any discount set by our board of directors in its sole discretion. If our shares are traded on a securities exchange or in the over-the-counter market when a dividend is declared, then the fair market value for this purpose will be the weighted average closing sales price of the common stock for the 10 trading days preceding the date on which that dividend is declared as reported through the securities exchange or the over-the-counter market (or, if no sales were reported during such 10 trading day period, the most recently-reported closing sales price). If the common stock is not then traded on a securities exchange or in the over-the-counter market, then the fair market value of a share as of the applicable dividend declaration date will be determined by our board of directors in good faith. Historically, our board of directors has approved a 5% discount on shares sold pursuant to our prior dividend reinvestment plans. Our board of directors may change or eliminate this discount at any time.

The Plan is designed for long-term investors who wish to invest and build their share ownership over time. Unlike an individual stock brokerage account, the timing of purchases and sales is subject to the provisions of the Plan.

As of the date of this prospectus, participation in the Plan is unavailable to