BAB, Inc. Announces Cash Distribution

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) announced a quarterly distribution of $0.01 per share, payable on October 20, 2022, to shareholders of record as of September 28, 2022. This distribution may have components treated as both a return of capital and a dividend, with final classifications determined in January 2023 based on the company's earnings for the fiscal year ending November 30, 2022.

The company franchises brands including Big Apple Bagels and My Favorite Muffin.

Positive

• Quarterly distribution of $0.01 per share indicates ongoing shareholder returns.
• Potential tax advantages for shareholders through distribution treatment as return of capital.

Negative

• Portion of distribution treated as a dividend will be uncertain until January 2023, which may cause investor apprehension.
• Dependence on earnings for fiscal year ending November 30, 2022, introduces risk regarding the final determination of distribution classification.

DEERFIELD, Ill., Sept. 09, 2022 (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 20, 2022 to shareholders of record as of September 28, 2022.

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 October 20, 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

What is the quarterly distribution amount declared by BAB, Inc.?

BAB, Inc. declared a quarterly distribution of $0.01 per share.

When is the distribution payable to shareholders of BAB, Inc.?

The distribution is payable on October 20, 2022.

What date is the record for shareholders to receive the distribution from BAB, Inc.?

Shareholders must be on record by September 28, 2022.

When will the tax treatment of the distribution be determined for BAB, Inc.?

The tax treatment will be determined in January 2023.

What brands does BAB, Inc. franchise?

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