BAB, Inc. Announces Cash Distribution

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) has announced a quarterly cash distribution of $0.01 per share, scheduled for payment on July 14, 2025, to shareholders of record as of June 26, 2025. The company notes that for tax purposes, a portion of this distribution and future 2025 distributions may be classified as a return of capital to shareholders, while the remaining portion may be treated as a dividend. The exact dividend portion will be determined in January 2026, based on the company's fiscal year 2025 earnings. BAB, Inc. operates as a franchisor and licensor of several food service brands including Big Apple Bagels®, My Favorite Muffin®, SweetDuet®, and Brewster's® coffee.

Positive

• Regular dividend distribution indicates stable cash flow management
• Company maintains shareholder returns despite small distribution amount

Negative

• Very small dividend amount of only $0.01 per share indicates limited profitability or cash reserves
• Trading on OTCQB market suggests lower liquidity and market visibility compared to major exchanges

DEERFIELD, Ill, June 06, 2025 (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 14, 2025 to shareholders of record as of June 26, 2025.

The Company believes it is possible for tax purposes, a portion of this distribution and any future distributions that the Board may declare in 2025 (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 14, 2025 Distribution that will be treated as a dividend will not be determined until January 2026, as that portion is dependent upon the Company’s earnings for tax purposes for its fiscal year ending November 30, 2025. The final determination will be reported to recipients of the Distributions on a tax information return in early 2026.

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.

Contact:        BAB, Inc.
                       Michael K. Murtaugh
                       Phone: (847) 948-7520 Fax: (847) 405-8140
                       www.babcorp.com

FAQ

What is the dividend amount and payment date for BAB Inc (BABB) in July 2025?

BAB Inc (BABB) will pay a quarterly dividend of $0.01 per share on July 14, 2025, to shareholders of record as of June 26, 2025.

How will the BAB Inc (BABB) 2025 distributions be treated for tax purposes?

The distributions may be partially treated as a return of capital to shareholders and partially as a dividend. The exact dividend portion will be determined in January 2026 based on fiscal year 2025 earnings.

What brands does BAB Inc (BABB) franchise and license?

BAB Inc franchises and licenses Big Apple Bagels, My Favorite Muffin, SweetDuet, and Brewster's coffee brands.

When will shareholders know the tax treatment of BAB Inc's (BABB) July 2025 distribution?

Shareholders will receive tax information returns in early 2026 detailing the final determination of the distribution's tax treatment.

What stock exchange is BAB Inc (BABB) traded on?

BAB Inc trades on the OTCQB market under the symbol BABB.