Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 18

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 18
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 Market, may not reflect the true market value of our common stock.

Historically, our board of directors has authorized a 5% discount on the sale price of shares sold under our dividend reinvestment plans and it currently intends to continue offering that discount for future dividend reinvestment purchases. Our board of directors reserves the right, in its sole discretion, to decrease, increase or eliminate the discount at any time and without notice, although we may advise participants through a press release or other appropriate means of any change in the applicable discount.

The Administrator will hold the shares purchased under the Plan in each participant’s name, or, if a broker or other nominee is participating on behalf of a beneficial owner, in the broker’s name or other nominee’s name, but the Administrator will have no responsibility for the value of such shares after their purchase.

Because the prices at which shares are purchased under the Plan are determined as of specified dates or as of dates otherwise beyond the control of participants, participants may lose any advantage otherwise available from being able to select the timing of their investments. Specifically, participants may pay a higher price for shares purchased under the Plan than for shares purchased on the investment date outside of the Plan.

| 11. | May a participant purchase shares through the Plan but have dividends on those shares sent directly to the participant? |

No, not unless the participant terminates participation in the Plan with respect to those shares. The purpose of the Plan is to provide participants with a convenient method of purchasing shares of common stock and having the cash dividends paid on those shares reinvested. Cash dividends paid on shares that are held in a participant’s Plan account will be automatically reinvested in additional shares of common stock regardless of which investment option is elected (i.e., full dividend reinvestment or partial dividend reinvestment), and those additional shares will be automatically enrolled in the Plan. Thus, any cash dividends paid on those additional shares will likewise be automatically reinvested in additional shares of common stock. If a participant desires to receive cash dividends that may be paid on shares that the participant has purchased through the Plan and are held in the participant’s Plan account, then the participant must terminate participation in the Plan with respect to those shares by completing and submitting a new Authorization Form. See Question No. 31 for information regarding how to contact the Administrator and obtain an Authorization Form.

If a participant has elected partial dividend reinvestment, then any cash dividends paid on shares that the participant has not enrolled in the Plan will be paid directly to the participant.

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