12:23 PM EDT, 08/16/2024 (MT Newswires) -- Farmer Brothers (FARM) shares rose 3.7% in recent trading Friday after the company agreed with activist shareholder 22NW on certain standstill provisions.

Farmer Brothers said Friday in a regulatory filing that 22NW agreed to cap its stake in the company at 15%. The accord also prohibits 22NW from seeking the election or removal of any directors or submitting proposals that would change the board, strategy or policies, according to the filing.

Farmer Brothers said 22NW agreed to vote is shares in line with board recommendations. except on "extraordinary transactions."

The company plans to appoint an observer nominated by 22NW to attend and participate in all meetings of the board.

The agreement is effective until Aug. 5, 2025.

Price: 2.54, Change: +0.09, Percent Change: +3.67