Overview
- Shareholders approved a R$2 million capital increase by issuing 200 million new Class B ordinary shares priced at R$0.01 each to provide immediate cash for payroll and working capital.
- The two existing owners have preemptive rights: Botafogo associativo may subscribe 102 million shares and Eagle may subscribe 98 million, with subscriptions open for 30 days and payments due within three business days after each subscription.
- A Rio de Janeiro court ordered judicial administrators to exercise Eagle’s political rights, so Eagle was represented by administrators and did not vote at the meeting, limiting its practical control during the AGE.
- If Eagle does not exercise its preference, unsubscribed shares can be taken by Botafogo associativo, a move that would materially dilute Eagle’s stake and could change the SAF’s balance of power while the club must still preserve minimum statutory holdings.
- The immediate cash raised is small but urgent because the SAF is under judicial recovery; the subscription result over the next month and recent law firms’ withdrawal from Eagle’s representation will determine who supplies the needed funds and who controls the company next.