Note 6 - Stockholder's Equity

12 Months Ended

Nov. 30, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

6

– Stockholders’ Equity

On

December 5, 2019,

a

$0.01

quarterly and a

$0.02

special cash distribution/dividend per share was declared and paid on

January 9, 2020.

The Board of Directors declared a

$0.01

quarterly cash distribution/dividend per share on

March 13,

June 5

and

September 5, 2019,

paid

April 18,

July 10,

and

October 8, 2019,

respectively.

The Board of Directors declared a cash distribution/dividend on

March 7,

June 4

and

September 4, 2018

of

$0.01

per share, paid

April 13,

July 6,

and

October 2, 2018,

respectively. On

December 6, 2018,

a

$0.01

quarterly and a

$0.02

special cash distribution/dividend per share was declared and paid on

January 11, 2019.

On

May 6, 2013,

the Board of Directors (“Board”) of BAB, Inc. authorized and declared a dividend distribution of

one

right for each outstanding share of the common stock of BAB, Inc. to stockholders of record at the close of business on

May 13, 2013.

Each right entitles the registered holder to purchase from the Company

one one

-thousandth of a share of the Series A Participating Preferred Stock of the Company at an exercise price of

$0.90

per

one

-thousandth of a Preferred Share, subject to adjustment. The complete terms of the Rights are set forth in a Preferred Shares Rights Agreement, dated

May 6, 2013,

between the Company and IST Shareholder Services, as rights agent.

The Board adopted the Rights Agreement to protect stockholders from coercive or otherwise unfair takeover tactics. In general terms, it works by imposing a significant penalty upon any person or group that acquires

15%

(or

20%

in the case of certain institutional investors who report their holdings on Schedule

13G

) or more of the Common Shares without the approval of the Board. As a result, the overall effect of the Rights Agreement and the issuance of the Rights

may

be to render more difficult a merger, tender or exchange offer or other business combination involving the Company that is

not

approved by the Board. However, neither the Rights Agreement nor the Rights should interfere with any merger, tender or exchange offer or other business combination approved by the Board.

Full details about the Rights Plan are contained in a Form

8

-K filed by the Company with the U.S. Securities and Exchange Commission on

May 7, 2013.

On

June 18, 2014

an amendment to the Preferred Shares Rights Agreement was filed appointing American Stock Transfer & Trust Company, LLC as successor to Illinois Stock Transfer Company. All original rights and provisions remain unchanged. On

August 18, 2015

an amendment was filed to the Preferred Shares Rights Agreement changing the final expiration date to mean the

fifth

anniversary of the date of the original agreement. All other original rights and provisions remain the same. On

May 22, 2017

an amendment was filed extending the final expiration date to mean the

seventh

anniversary date of the original agreement. All other original rights and provisions remain the same. On

February 22, 2019

an amendment was filed extending the final expiration date to mean the

ninth

anniversary date of the original agreement. All other original rights and provisions remain the same.