Farmers and Merchants Bancshares, Inc. Announces Adoption of Limited Duration Stockholder Rights Plan
Farmers and Merchants Bancshares, Inc. (FMFG) has adopted a duration stockholder rights plan to protect the company and its stockholders' interests. This decision follows a Schedule 13D/A filing by an Investor Group owning approximately 10.1% of the company's stock, who intend to acquire 24.9% and nominate board candidates. The Rights Plan, effective immediately with a one-year expiration, aims to:
- Ensure long-term value for stockholders
- Prevent rapid accumulation of controlling positions
- Guard against abusive tactics
- Allow directors to fulfill their duties
The plan issues one right per outstanding share, becoming exercisable if an entity acquires 11% or more of the stock without board approval.
Farmers and Merchants Bancshares, Inc. (FMFG) ha adottato un piano di diritti per gli azionisti per proteggere l'interesse della compagnia e dei suoi azionisti. Questa decisione segue un deposito del Schedule 13D/A da parte di un Gruppo di Investitori che possiede circa il 10,1% delle azioni della compagnia, che intendono acquisire il 24,9% e nominare candidati per il consiglio. Il Piano di Diritti, attivo immediatamente e con scadenza di un anno, mira a:
- Garantire valore a lungo termine per gli azionisti
- Prevenire l'accumulo rapido di posizioni di controllo
- Proteggere contro pratiche abusive
- Consentire ai direttori di adempiere ai propri doveri
Il piano emette un diritto per ogni azione in circolazione, rendendolo esercitabile se un'entità acquista l'11% o più delle azioni senza l'approvazione del consiglio.
Farmers and Merchants Bancshares, Inc. (FMFG) ha adoptado un plan de derechos de los accionistas para proteger los intereses de la compañía y de sus accionistas. Esta decisión sigue a la presentación de una Solicitud 13D/A por parte de un Grupo de Inversores que posee aproximadamente el 10,1% de las acciones de la compañía, quienes tienen la intención de adquirir el 24,9% y nominar candidatos a la junta. El Plan de Derechos, efectivo de inmediato y con una duración de un año, tiene como objetivo:
- Asegurar el valor a largo plazo para los accionistas
- Prevenir la acumulación rápida de posiciones de control
- Protegerse contra tácticas abusivas
- Permitir que los directores cumplan con sus deberes
El plan otorga un derecho por cada acción en circulación, el cual se puede ejercer si una entidad adquiere el 11% o más de las acciones sin la aprobación de la junta.
Farmers and Merchants Bancshares, Inc. (FMFG)는 주주 권리 계획을 도입하였습니다 이는 회사와 주주들의 이익을 보호하기 위한 것입니다. 이 결정은 회사의 주식 약 10.1%를 보유하고 있는 투자 그룹에 의해 13D/A 양식이 제출된 후 내려졌습니다, 이들은 24.9%를 인수하고 이사회 후보를 지명할 의도를 가지고 있습니다. 즉시 시행되며 1년 만료의 권리 계획은 다음을 목표로 합니다:
- 주주를 위한 장기 가치를 보장
- 지배적 지위의 빠른 누적 방지
- 악의적인 전술로부터 방어
- 이사가 본연의 의무를 다할 수 있도록 허용
이 계획은 발행된 주식 각각에 대해 하나의 권리를 부여하며, 이사회 승인 없이 주식 11% 이상을 인수하면 행사할 수 있게 됩니다.
Farmers and Merchants Bancshares, Inc. (FMFG) a adopté un plan de droits des actionnaires pour protéger les intérêts de l'entreprise et de ses actionnaires. Cette décision fait suite à un dépôt de Schedule 13D/A par un Groupe d'Investisseurs possédant environ 10,1 % des actions de l'entreprise, qui ont l'intention d'acquérir 24,9 % et de nommer des candidats au conseil. Le Plan de Droits, effectif immédiatement et d'une durée d'un an, vise à :
- Assurer une valeur à long terme pour les actionnaires
- Prévenir l'accumulation rapide de positions de contrôle
- Protéger contre les pratiques abusives
- Permettre aux administrateurs d'accomplir leurs devoirs
Le plan accorde un droit par action en circulation, qui devient exerçable si une entité acquiert 11 % ou plus des actions sans l'approbation du conseil d'administration.
Farmers and Merchants Bancshares, Inc. (FMFG) hat einen Aktionärsrechteplan eingeführt, um die Interessen des Unternehmens und seiner Aktionäre zu schützen. Diese Entscheidung folgt auf die Einreichung eines Schedule 13D/A durch eine Investorengruppe, die etwa 10,1 % der Unternehmensaktien besitzt und beabsichtigt, 24,9 % zu erwerben und Kandidaten für den Vorstand zu nominieren. Der Rechteplan tritt sofort in Kraft und läuft ein Jahr, mit folgenden Zielen:
- Sicherung des langfristigen Wertes für die Aktionäre
- Verhinderung des schnellen Erwerbs von Kontrollpositionen
- Schutz vor missbräuchlichen Taktiken
- Ermöglichung der Erfüllung der Aufgaben der Direktoren
Der Plan gewährt ein Recht pro ausgegebene Aktie und wird ausübbar, wenn eine Entität 11 % oder mehr der Aktien ohne Zustimmung des Vorstands erwirbt.
- Proactive measure to protect stockholder interests
- Prevents rapid accumulation of controlling positions without fair compensation
- Allows board time to make informed decisions in company's best interest
- One-year expiration demonstrates temporary nature of the plan
- Potential limitation on stock price appreciation from takeover attempts
- May discourage some investors from acquiring larger stakes in the company
- Could be perceived as an entrenchment tactic by current management
Board Acts to Protect the Interests of the Company and its Stockholders Following an Investor Group’s Filing of an “Interagency Notice of Change in Bank Control” with Regulators
Stockholders Do Not Need to Take Any Action
HAMPSTEAD, Md., July 30, 2024 (GLOBE NEWSWIRE) -- Farmers and Merchants Bancshares, Inc. (the “Company”), the parent of Farmers and Merchants Bank, announced today that its Board of Directors (the “Board”) voted unanimously to adopt a limited duration stockholder rights plan (the “Rights Plan”) to protect the interests of the Company and its stockholders. The Rights Plan is effective immediately and will expire in one year.
The Board’s decision follows a Schedule 13D/A filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 8, 2024 by Barry J. Renbaum and Carol E. Renbaum (the “Investor Group”), who, by the Company’s calculations, collectively own approximately
About the Rights Plan
The Rights Plan, which is similar to plans adopted by other public companies, has been structured to:
- Ensure that all of the Company’s stockholders have the opportunity to realize the long-term value of their stockholdings;
- Prevent any investor or group of investors from rapidly accumulating a controlling or control-like position in the Company;
- Guard against abusive tactics or other tactics potentially disadvantaging to the interests of the Company and its stockholders without negotiating with the Board and without paying an appropriate control premium to all stockholders, and;
- Position the Company’s directors so that they may fulfill their statutory duties by ensuring that they have sufficient time to make informed judgments that are in the best interests of the Company.
The Rights Plan provides for the issuance of one right for each outstanding share of the Company’s common stock. Under the Rights Plan, rights will become exercisable if a person, entity or group acquires beneficial ownership of
Additional details regarding the Rights Plan will be included in a Current Report on Form 8-K being filed by the Company with the SEC.
About Farmers and Merchants Bancshares, Inc.
Farmers and Merchants Bancshares, Inc. is a financial holding company and the parent of Farmers and Merchants Bank. Farmers and Merchants Bank was chartered in Maryland in 1919 and has over 100 years of service to the community. The Bank serves the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30, Route 795, Route 140, Route 26, and Route 45 corridors. The main office is located in Upperco, Maryland, with seven additional branches in Owings Mills, Hampstead, Greenmount, Reisterstown, Westminster, Eldersburg, and Towson. Certain broker-dealers make a market in the common stock of Farmers and Merchants Bancshares, Inc., and trades are reported through the OTC Markets Group’s Pink Market under the symbol “FMFG”.
Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “will,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance, and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the Company’s periodic reports filed with the SEC entitled “Risk Factors.”
FAQ
What triggered Farmers and Merchants Bancshares (FMFG) to adopt a stockholder rights plan?
How long will the FMFG stockholder rights plan be in effect?
At what ownership percentage does the FMFG rights plan become exercisable?
What happens if the rights become exercisable in the FMFG plan?
