Company: FMFG
Filing Date: 2025-09-25
Form Type: 8-K
Source: 0001437749-25-029881
Chunk: 1

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-09-25
Form: 8-K
Item: Item 1.01
Chunk 1
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 than zero, then the Three-Month Term SOFR rate shall be deemed to be zero.

The Notes were offered and sold by the Company in a private placement transaction to certain qualified institutional buyers and institutional accredited investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “ Securities Act”), pursuant to Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder.

The Notes are not subject to any sinking fund and are not convertible into or exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. Prior to September 26, 2030, the Company may redeem the Notes, in whole or in part, only under certain limited circumstances set forth in the Notes. On or after September 26, 2030, the Company may redeem the Notes, in whole or in part, at its option, on any Interest Payment Date (as defined in the Notes). Any redemption by the Company would be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, together with any accrued and unpaid interest on the Notes being redeemed to but excluding the date of redemption. Any redemption of the Notes will be subject to the receipt of any and all required federal and state regulatory approvals, including the approval of the Board of Governors of the Federal Reserve System to the extent then required under applicable laws or regulations.

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The payment of principal and interest on the Notes is subject to acceleration only in limited circumstances in the case of certain bankruptcy and insolvency-related events with respect to the Company. The Notes are general unsecured, subordinated obligations of the Company and rank junior to all of its existing and future Senior Indebtedness (as defined in the Notes). The Notes are obligations of only the Company and are not obligations of, and are not guaranteed by, any of its subsidiaries, including Farmers and Merchants Bank. Further, the Notes are intended to qualify as Tier 2 capital of the Company for regulatory capital purposes.

The foregoing descriptions of the Purchase Agreement and the Notes are only summaries and are qualified in their entireties by reference to the complete text of such documents, forms of which are attached as Exhibit 10.1 and Exhibit 4.1 respectively.