VAUGHAN, ON, May 5, 2016 /CNW/ - The Board of Directors of Cara Operations Limited (TSX: CAO) ("Cara" or the "Company") has declared a quarterly dividend of $0.1017 per share on its outstanding Subordinate Voting Shares, Multiple Voting Shares and subscription receipts, or approximately $5.8 million in the aggregate, representing an expected aggregate annual dividend of $23.2 million.
Payment of the dividend will be made on June 15, 2016 to shareholders of record at the close of business on May 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
On May 5, 2016, the Company suspended the Dividend Reinvestment Plan which provided holders of Subordinate Voting Shares of Cara and Multiple Voting Shares of Cara, to acquire additional Subordinate Voting Shares by reinvesting all of their cash dividends at a purchase price discount of 3%.
The Company will continue to review its Dividend Policy on a quarterly basis and may reinstate the Dividend Reinvestment Plan in the future.
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 March 27, 2016, Cara had 997 restaurants, 959 of which were located in Canada and the remaining 38 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