VAUGHAN, ON, March 3, 2016 /CNW/ - The Board of Directors of Cara Operations Limited (TSX: CAO) ("Cara" or the "Company") has declared a quarterly dividend of $0.10171 per share on its outstanding subordinate voting shares and multiple voting shares, or approximately $5.0 million in the aggregate, representing an expected aggregate annual dividend of $20.0 million.
Payment of the dividend will be made on April 15, 2016 to shareholders of record at the close of business on March 31, 2016. Cara has designated this dividend as an eligible dividend within the meaning the Income Tax Act (Canada) and all provisions of provincial laws applicable to eligible dividends.
Dividend Reinvestment Plan
Cara offers a Dividend Reinvestment Plan ("DRIP" or the "Plan') to any registered or beneficial holder of its subordinate voting shares and multiple voting shares who is a resident of Canada. The Dividend Reinvestment Plan enables shareholders to acquire additional subordinate voting shares from Cara by reinvesting all of their cash dividends. The shares will be issued at a discount from the market price of the shares. The purchase price discount has initially been set at 3%.
A registered shareholder may enroll in the Plan by completing an Enrollment Form and returning it to Computershare, the Administrator. A completed Enrollment Form must be received by the Administrator no later than 5:00 pm (EDT) on March 24, 2016 in order for the fourth quarter dividend to be reinvested under the Plan.
To obtain an Enrollment Form, please contact Computershare at 1-866-313-1872.
Beneficial holders (persons who use a broker or other intermediary to hold their shares) may also participate in the Plan by (i) directing their broker to electronically transfer all or any number of whole shares into the holder's name and then enrolling in the Plan as a registered holder or (ii) making appropriate arrangements with the broker or other intermediary who holds the shares to enroll in the Plan on their behalf.
A complete copy of the DRIP is available on the Investor Relations website at www.cara.com. Shareholders should carefully read the complete text of the DRIP before making any decisions regarding their participation in the DRIP.
Founded in 1883, Cara is Canada's oldest and largest full-service restaurant company. The Company franchises and/or operates some of the most recognized brands in the country including Swiss Chalet, Harvey's, Milestones, Montana's, Kelsey's, East Side Mario's, Casey's, New York Fries, Prime Pubs, Bier Markt and Landing restaurants. As at December 27, 2015, Cara had 1,010 restaurants, 973 of which were located in Canada and the remaining 37 locations were located internationally. 88% of Cara's restaurants are operated by franchisees and 66% of Cara's locations are based in Ontario. Cara's shares trade on the Toronto Stock Exchange under the ticker symbol CAO. More information about the Company is available at www.cara.com.
Certain information in this news release relating to Cara is forward-looking within the meaning of Canadian securities laws. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes. The purpose of forward-looking information is to provide investors with management's assessment of future plans and possible outcomes and may not be appropriate for other purposes.
Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, Cara disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
SOURCE Cara Operations Limited