Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 13

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 13
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 2,407 shares failed to comply with Section 5 of the Securities Act. Those participants might have the right to rescind their purchases of the portions of the 2,407 shares that we sold to them and require us to reacquire those portions of shares at a price equal to the price originally paid for such portions plus interest, less the amount of any income (i.e., dividends) that they received on such portions of shares. A participant who acquired a portion of those 2,407 shares but who no longer owns that portion might have the right to collect damages from us in lieu of the rescission rights described above. If participants were to be successful in seeking rescission and/or damages, then we would face financial demands that could adversely affect our financial condition and/or results of operations. Additionally, we might become subject to penalties imposed by the SEC and/or state securities regulators in connection with our unregistered sale of those 2,407 shares.

<div align='center'>DESCRIPTION OF THE PLAN</div>

The following is a question and answer statement of the provisions of the Plan. The Plan was authorized by the Company’s board of directors on May 19, 2025. The Plan will continue until the earlier of the date that all shares registered under the Plan have been sold or the date we terminate the Plan.

Purpose

| 1. | What is the purpose of the Plan? |

The purpose of the Plan is to provide holders of our common stock with a convenient method of investing some or all of their cash dividends in shares of common stock.

Advantages

| 2. | What are the advantages of the Plan? |

The advantages of the Plan are as follows:

| ● | Full and Partial Dividend Reinvestment. Participants may have all or only some of the cash dividends paid on their shares of common stock automatically reinvested in additional shares of common stock. |

| ● | Ability to Buy Fractional Shares. You may invest 100% of the cash dividends paid on your shares even if the amount of those dividends would not be enough to purchase a whole share because the Plan permits fractions of shares, as well as full shares, to be credited to participants’ accounts. In addition, dividends in respect of such fractions, as well as full shares, will be credited to participants’ accounts. |

<div align='center'>-7-</div>

| ● | Price Discount. We may offer shares under the Plan at a discount. The discount, if offered, will be established from time to time by