Farmer Bros (FARM) investor relations material

Executive summary

• A definitive merger agreement was signed for the acquisition of the company by Royal Cup, Inc., making it a wholly-owned subsidiary, with each share converted into $1.29 in cash, pending shareholder approval.

• The board unanimously recommends voting in favor of the merger, citing a thorough strategic review, challenging standalone prospects, and a comprehensive market check with 52 potential buyers contacted.

• The special meeting for shareholder voting is scheduled for May 1, 2026, and will be held virtually.

• If the merger is not approved, the company may face liquidity issues and could be forced to seek alternative financing, asset sales, or liquidation, likely at a value below the merger consideration.

Voting matters and shareholder proposals

• Shareholders will vote on three proposals: (1) adoption of the merger agreement, (2) a non-binding advisory vote on executive compensation related to the merger, and (3) adjournment of the meeting if more time is needed to solicit votes.

• Approval of the merger requires a majority of outstanding shares; abstentions and broker non-votes count as votes against.

• Supporting stockholders holding 22.1% of shares have entered into voting agreements to support the merger.

Board of directors and corporate governance

• The board conducted an extensive review of strategic alternatives, including outreach to 52 potential buyers and receipt of multiple bids.

• The board’s decision was unanimous, with all directors voting in favor of the merger.

• The board retains the right to consider superior proposals prior to shareholder approval, subject to certain conditions and a matching right for Royal Cup.