BAB, Inc. Announces Cash Distribution

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) announced a quarterly distribution of $0.01 per share, payable on April 22, 2021, to shareholders of record as of April 1, 2021. The company believes that part of this distribution may be treated as a return of capital for tax purposes, with the remainder classified as a dividend. The determination of the dividend portion will depend on the company’s earnings for the fiscal year ending November 30, 2021, to be reported in early 2022. BAB, Inc. operates franchises for Big Apple Bagels®, My Favorite Muffin®, and others.

Positive

• Quarterly distribution of $0.01 per share announced.
• Potential for part of the distribution to be treated as a return of capital.

Negative

• Determination of dividend portion will be delayed until January 2022.
• Uncertainty regarding the final classification of the distribution based on future earnings.

DEERFIELD, Ill., March 17, 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 April 22, 2021 to shareholders of record as of April 1, 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 April 22, 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 stock symbol for BAB, Inc.?

The stock symbol for BAB, Inc. is BABB.

When is the distribution payment date for BAB, Inc.?

The distribution payment date for BAB, Inc. is April 22, 2021.

Who is eligible for the distribution announced by BAB, Inc.?

Shareholders of record as of April 1, 2021, are eligible for the distribution.

What portion of the distribution by BAB, Inc. is considered a return of capital?

A portion of the distribution may be treated as a return of capital, but this will be determined based on each shareholder’s basis.

When will the dividend portion of the distribution be determined for BAB, Inc.?

The dividend portion will be determined in January 2022 based on the company's earnings.