Oi announced a reverse stock split that will be voted at the Extraordinary Shareholders’ Meeting. Why is the Company submitting this proposal?

The main purpose of the reverse stock split is to adjust the share priceissued by the Company in order to be compliant with the mandatory listing requirements defined by B3. As an issuer of shares listed and traded on B3, Oi has to comply with the requirements of the Issuers’ Listing Regulation and Admission to Trading Securities and B3’s Issuer Manual.

According to item 5.2.f of the Regulation and items 5.1.2 (vi) and 5.2 of the Manual, available on the website of B3 (https://www.b3.com.br/pt_br/regulacao/estrutura-normativa/regulamentos-e-manuais/listagem.htm), Oi is expected to maintain the price of its shares above the minimum price defined by B3, undertaking to take the necessary acts to such qualification within the deadline defined by B3.

Any company that wishes to trade shares on a stock exchange is required to keep the price of its shares above R$1.00. If the measure taken is not sufficient for the closing price of Oi’s shares to be equal to or higher than R$1.00 by February 17, 2023, as established by the stock exchange, B3 will request the suspension of trading such shares.

And why has Oi chosen the reverse stock split factor 50:1?

The reverse stock split is a technical maneuver and maintains the Company’s value creation fundamentals unchanged. Despite that, it may be  based on parameters that leverage the stock’s value perception and add value to our transformation process.

Accordingly, the Company followed price references recommended by B3, as observed in shares listed on Ibovespa, and considered the best option seeking to:

1. Recompose liquidity through the placement of fractions held by inactive shareholders in the stock exchange environment resulting from the reverse split
2. Improve price formation promoting a healthier and fairer secondary market
3. Provide technical aspects more attractive to the analysis of institutional investors and analysts

What are the next steps until the reverse split process is concluded?

1. Voting of the proposal at an Extraordinary Shareholders’ Meeting in 2nd call: December 01, 2022
2. Trading of shares after the reverse split: expected for early January 2023
3. Auction (or auctions) of the fractions and transfer of results: expected to occur in mid-January and be concluded in February

What will my position be after the reverse split?

You can simulate the result of your position at the end of the reverse splitthroughthe calculator available here.