Farmer Brothers CEO Cashes Out Entire Stake at $1.29 per Share in Royal Cup Merger

*TL;DR CEO John E. Moore III sold every Farmer Brothers share he owned for $1.29 each, fully exiting his equity position as the company merges with Royal Cup.

Context Farmer Brothers Co. (NASDAQ: FARM) is being taken private by Royal Cup, Inc. under a merger agreement dated March 3, 2026. The deal converts each outstanding Farmer Brothers common share into a cash payment of $1.29, with no interest. The transaction also cancels all outstanding restricted stock units (RSUs) and replaces them with cash calculated at the same $1.29 rate, plus any accrued dividend equivalents, less taxes.

Key Facts - John E. Moore III disposed of 599,344 shares held directly and 1,476.204 shares held in the company’s 401(k) plan, each at $1.29. The sales generated roughly $775,000 in cash and left him with zero Farmer Brothers shares. - The merger agreement mandates that every Farmer Brothers common share be cancelled and exchanged for $1.29 in cash, without interest. - All outstanding RSUs are terminated at the merger’s effective time. Holders receive cash equal to the number of underlying shares multiplied by $1.29, plus any unpaid dividend equivalents, after applicable tax withholdings. Vesting schedules remain unchanged for any future cash payouts.

What It Means Moore’s complete cash‑out signals that the CEO has no remaining equity exposure to Farmer Brothers post‑merger, aligning his interests with the transaction’s completion. The uniform $1.29 per‑share cash price applies to all shareholders, simplifying the conversion process and eliminating any cash‑flow uncertainty tied to interest or future payouts.

For remaining shareholders, the merger delivers a fixed cash return of $1.29 per share, plus any dividend equivalents earned before the effective date. The cancellation of RSUs removes future equity upside but provides immediate cash value, subject to tax withholding. The deal effectively ends Farmer Brothers’ public trading and integrates the company as a wholly owned subsidiary of Royal Cup.

Looking Ahead Watch for the merger’s effective date and subsequent integration steps, including how Royal Cup plans to leverage Farmer Brothers’ coffee‑service assets and whether additional cash distributions will be announced for former RSU holders.