Burger Fuel to return NZ$4.077 million to shareholders

Burger Fuel Group Limited (BFG) plans to return approximately NZ$4.077 million to shareholders through a pro-rata share cancellation.

The company's balance sheet currently has excess cash that the board believes is more than what is needed for working capital.

The surplus capital is a result of a collaboration agreement with Franchise Brands LLC (FBL) that was terminated after the death of the founder of Subway®.

BFG considered various uses for the excess cash but found no suitable opportunities.

Due to the Covid-19 pandemic, the board decided to keep the cash until the business returned to a regular trading pattern.

After careful consideration, the board has determined that a pro-rata return of capital is the best use of the excess cash.

BFG will apply to the Court for approval, and the whole process is expected to take approximately 15 to 20 weeks.

After the capital return, BFG expects to have approximately NZ$4.100 million of cash on hand for its operations and growth.