BAB, Inc. Announces Cash Distribution

Rhea-AI Summary

BAB announced a quarterly cash distribution of $0.01 per share, payable on July 12, 2024, to shareholders recorded by June 24, 2024. The distribution might partly be a return of capital, taxable based on shareholder’s basis, with the remainder as a dividend. The exact dividend portion will be determined by January 2025, based on the company’s earnings for its fiscal year ending November 30, 2024. BAB franchises Big Apple Bagels, My Favorite Muffin, SweetDuet, and Brewster’s coffee. The company trades on the OTCQB under the ticker BABB.

Positive

• Quarterly cash distribution of $0.01 per share.
• Distribution date set for July 12, 2024.
• Shareholders recorded by June 24, 2024, will receive the distribution.
• Potential tax benefits with parts of the distribution as a return of capital.

Negative

• Dividend portion determination delayed until January 2025.
• Uncertainty in distribution’s tax treatment until early 2025.
• Dependence on company’s earnings for fiscal year ending November 30, 2024.

DEERFIELD, Ill., June 06, 2024 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), today announced that its Board of Directors has declared a quarterly distribution of one cent ($0.01) per share, payable on July 12, 2024 to shareholders of record as of June 24, 2024.

The Company believes it is possible for tax purposes, a portion of this distribution and any future distributions that the Board may declare in 2024 (collectively, the “Distributions”) may be treated as a return of capital to shareholders to the extent of each shareholder’s basis, while the remaining portion of the Distributions may be treated as a dividend.

The portion of the July 12, 2024 Distribution that will be treated as a dividend will not be determined until January 2025, as that portion is dependent upon the Company’s earnings for tax purposes for its fiscal year ending November 30, 2024. The final determination will be reported to recipients of the Distributions on a tax information return in early 2025.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® and Brewster’s® coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its web site can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.

FAQ

What is the amount of the quarterly cash distribution announced by BAB?

BAB announced a quarterly cash distribution of $0.01 per share.

When will BAB shareholders receive the announced distribution?

Shareholders will receive the distribution on July 12, 2024.

What is the record date for BAB’s quarterly distribution?

The record date is June 24, 2024.

What is the stock symbol for BAB?

BAB trades under the ticker BABB on the OTCQB.

How will the distribution be treated for tax purposes?

Part of the distribution may be a return of capital, and the rest may be a dividend. The exact dividend portion will be determined by January 2025.