AXIA Energia Director Converts Preferred Shares into 2.8M Common Shares

Transaction Overview

On October 20, 2026, AXIA Energia S.A. director Jose Joao Abdalla Filho converted an aggregate of 2,815,496 Class "C" Preferred Shares into 2,815,496 Common Shares at an effective exercise/transaction price of $0.00.

The conversion occurred across two indirect holding entities controlled by Mr. Filho:

1. Banclass FIA: Converted 433,471 Class "C" Preferred Shares into 433,471 Common Shares, bringing its post-transaction Common Share balance to 16,742,885 shares and remaining Class "C" Preferred balance to 2,060,613 shares.
2. FIA Dinamica Energia: Converted 2,382,025 Class "C" Preferred Shares into 2,382,025 Common Shares, bringing its post-transaction Common Share balance to 106,872,433 shares and remaining Class "C" Preferred balance to 11,323,530 shares.

Nature of Transaction & Bylaw Provisions

According to the footnotes, this conversion was executed in connection with the mandatory redemption of 17.38% of AXIA Energia's outstanding Class "C" Preferred Shares announced on October 7, 2026, pursuant to the company's bylaws (Article 11). The shares convert at a 1:1 ratio into Common Shares.

Market Impact & Significance

This transaction carries Low trading significance. It does not reflect discretionary open-market insider buying or selling sentiment. Rather, it represents an administrative derivative conversion and mandatory redemption dictated by the company's organizational documents.