The new version of the Issuer Manual approved by the Brazilian Securities and Exchange Commission (CVM) aligns mechanisms for disclosure of material facts with the changes introduced in CVM Instruction No. 358/2002 by CVM Instruction No. 590/2017, which amended paragraph 2 of article 5 of the previous text, now in force with the following wording:

Paragraph 2. If it is imperative that the disclosure of a material act or fact occur during trading hours, the Investor Relations Officer may request, always simultaneously with the stock exchanges and organized over-the-counter market entities, both Brazilian and foreign, in which the securities issued by the company are admitted for trading, suspension of the trading of the securities issued by the publicly-held company, or relating to them, for the time necessary for proper dissemination of the material information, in accordance with the procedures set forth in the regulations issued by the securities exchanges and organized over-the-counter market entities on the subject.

According to the new version of the manual, since May 2, 2018, the following procedures must be observed by issuers of securities in disclosing material facts:

  1. the issuer must disclose material acts or facts to B3 (Brasil, Bolsa, Balcão) and to the market at least (i) 30 minutes in advance of the opening of the trading session; or (ii) after its closure, without prejudice to the provisions of item (ii) below;

  2. in exceptional cases where it is absolutely necessary to disclose a material act or fact during trading hours, including in the event of loss of control over the secrecy of the information, the issuer should contact B3 prior to the actual disclosure to the market of the material act or fact, in accordance with applicable legislation; and

  3.    the contact mentioned in item (ii) above must be made by the issuer via telephone call to B3’s Board of Issuers, at +55 11 2565-6063.

Depending on the information provided by the issuer in the telephone call mentioned in item (iii) above, B3 may not suspend the trading of the issuer's securities if it finds that suspension may impair the efficient functioning of the market.

If B3 decides to suspend trading of the securities, this fact will be communicated to the issuer in the same telephone call. Thereafter, the suspension shall be disclosed to the market. In this case, the issuer shall disclose the material act or fact to the market in accordance with applicable legislation, within 10 minutes of the suspension.