BAB, Inc. Announces Cash Distribution

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) has announced a quarterly distribution of $0.01 per share, payable on January 11, 2022, for shareholders recorded by December 22, 2021. The company suggests that part of this distribution may be classified as a return of capital, whereas the remainder could be treated as a dividend, depending on its fiscal year earnings ending November 30, 2022. The dividend attribution will be confirmed in January 2023. BAB franchises various brands, including Big Apple Bagels and My Favorite Muffin.

Positive

• Quarterly distribution of $0.01 per share demonstrates ongoing commitment to returning value to shareholders.

Negative

• The exact portion of the distribution classified as a dividend will not be known until January 2023.

DEERFIELD, Ill., Dec. 06, 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 January 11, 2022 to shareholders of record as of December 22, 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 2022 (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 January 11, 2022 Distribution that will be treated as a dividend will not be determined until January 2023, as that portion is dependent upon the Company’s earnings for tax purposes for its fiscal year ending November 30, 2022. The final determination will be reported to recipients of the Distributions on a tax information return in early 2023.

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

When is the BAB, Inc. dividend payment date?

The dividend payment date for BAB, Inc. is January 11, 2022.

What is the amount of the BAB, Inc. dividend?

The dividend amount declared by BAB, Inc. is $0.01 per share.

What is the record date for the BAB, Inc. dividend?

The record date for the BAB, Inc. dividend is December 22, 2021.

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

The distribution may be treated as a return of capital and a dividend, with the final determination made in January 2023.