BAB, Inc. Announces Cash Distribution

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) has declared a quarterly distribution of $0.01 per share, payable on October 18, 2021, to shareholders on record as of September 27, 2021.

This distribution may partly qualify as a return of capital for tax purposes, with the dividend portion determined in January 2022, based on the Company's earnings for the fiscal year ending November 30, 2021.

BAB, Inc. operates franchises of Big Apple Bagels®, My Favorite Muffin®, SweetDuet®, and Brewster’s® coffee.

Positive

• Quarterly distribution of $0.01 per share reflects the company's commitment to returning value to shareholders.

Negative

• The exact portion of the distribution treated as a dividend will be determined only in January 2022, creating uncertainty for shareholders.

DEERFIELD, Ill., Sept. 10, 2021 (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 October 18, 2021 to shareholders of record as of September 27, 2021.

The Company believes it is possible for tax purposes, a portion of this distribution and any future distributions that the Board may declare in 2021 (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 October 18, 2021 Distribution that will be treated as a dividend will not be determined until January 2022, as that portion is dependent upon the Company’s earnings for tax purposes for its fiscal year ending November 30, 2021. The final determination will be reported to recipients of the Distributions on a tax information return in early 2022.

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 dividend announced by BAB, Inc. (BABB)?

BAB, Inc. has announced a quarterly dividend of $0.01 per share, payable on October 18, 2021.

When will the distribution be paid to shareholders of BAB, Inc.?

The distribution will be paid on October 18, 2021, to shareholders recorded as of September 27, 2021.

How will the distribution from BAB, Inc. be treated for tax purposes?

The distribution may be partly considered a return of capital, with the dividend portion to be determined in January 2022.

What fiscal year earnings affect the distribution of BAB, Inc.?

The distribution's dividend portion is based on BAB, Inc.'s earnings for the fiscal year ending November 30, 2021.