Farmer Bros (FARM) investor relations material

Executive summary

• Royal Cup will acquire all outstanding shares for $1.29 per share in cash, with the company becoming a wholly owned subsidiary and delisted from NASDAQ upon closing, expected by fiscal Q4 2026.

• The board unanimously approved the merger and recommends shareholder approval; certain shareholders holding 22.1% have entered into voting agreements to support the deal.

• The merger is subject to customary closing conditions, including majority shareholder approval and regulatory clearances.

• The combined entity aims to create a scaled, integrated beverage solutions platform with expanded distribution and manufacturing capabilities.

• Communications to employees, customers, and partners emphasize business continuity and no immediate operational changes until after closing.

Voting matters and shareholder proposals

• Shareholders will vote on the approval and adoption of the merger agreement; a majority is required for approval.

• Voting agreements have been signed by shareholders representing 22.1% of outstanding shares, committing to vote in favor.

• The board recommends shareholders approve the merger; proxy materials will be distributed prior to the meeting.

Board of directors and corporate governance

• The board unanimously determined the merger is in the best interests of shareholders and directed the agreement be submitted for a vote.

• The board received a fairness opinion from its financial advisor regarding the transaction.

• Post-merger, the directors and officers of the acquiring entity will become the directors and officers of the surviving corporation.