BAB, Inc. Announces Cash Distribution
Rhea-AI Summary
BAB, Inc. (OTCQB: BABB) has announced a quarterly cash distribution of $0.01 per share, payable on October 11, 2024, to shareholders of record as of September 23, 2024. The company notes that for tax purposes, a portion of this distribution and future 2024 distributions may be treated as a return of capital, while the remainder may be considered a dividend. The exact dividend portion will be determined in January 2025, based on the company's fiscal year 2024 earnings ending November 30, 2024. Shareholders will receive tax information returns in early 2025.
BAB, Inc. operates in the food franchise industry, managing brands such as Big Apple Bagels, My Favorite Muffin, SweetDuet, and Brewster's coffee.
Positive
- Declared quarterly cash distribution of $0.01 per share
- Consistent dividend policy indicates financial stability
Negative
- Low dividend amount of $0.01 per share may not be attractive to income-focused investors
- Uncertainty about the tax treatment of the distribution until 2025
DEERFIELD, Ill., Sept. 06, 2024 (GLOBE NEWSWIRE) -- September 6, 2024 - BAB, Inc. (OTCQB: BABB), today announced that its Board of Directors has declared a quarterly distribution of one cent (
The Company believes it is possible for tax purposes, a portion of this distribution and any future distributions that the Board may declare in 2024 (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 11, 2024 Distribution that will be treated as a dividend will not be determined until January 2025, as that portion is dependent upon the Company’s earnings for tax purposes for its fiscal year ending November 30, 2024. The final determination will be reported to recipients of the Distributions on a tax information return in early 2025.
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 will BAB, Inc. (BABB) pay its next quarterly distribution?
What is the record date for BAB, Inc.'s (BABB) October 2024 distribution?
How might BAB, Inc.'s (BABB) 2024 distributions be treated for tax purposes?
What brands does BAB, Inc. (BABB) franchise and license?
