GOL Linhas Aéreas concludes equity capital increase.

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GOL Linhas Aéreas Inteligentes S.A. today announces the conclusion of the term for eligible shareholders to exercise preemptive rights for the subscription of shares in connection with the equity capital increase announced on April 28, 2021 (“Capital Increase”), which was anchored with a R$268 million investment by the Company’s controlling shareholder, the Constantino brothers. GOL’s minority shareholders contributed another R$155 million, bringing the total raised to R$423 million, in line with expectations.

Together with the R$607 million capital increase related to the take-in of the Smiles minority interest, the Company issued approximately R$1 billion of new equity capital this month, making GOL the only South American airline to increase its equity capital over the past 12 months. Proforma for the equity issuances, the Company’s controlling shareholder maintains a 57% economic stake in the equity of GOL. Also, these equity issuances make GOL the most liquid airline stock in Latin America with an average daily trading volume of approximately R$300 million.

When combined with the recent re-tap on the Company’s Secured Notes issuance, GOL has raised over R$2.7 billion of long-term capital this quarter. As a result, the Company has the best balance sheet among all publicly traded airlines in South America, and the resources for growth and investment in its operations as Brazil’s economy recovers.

“Our success in maintaining liquidity through this pandemic is the result of concerted efforts to right-size our balance sheet over the past five years,” said Paulo Kakinoff, CEO. “By minimizing dilution over the past 12 months and executing on two key strategic transactions, we are positioned for meaningful earnings growth as the increase in immunity and beginning of the high season drives a growth in demand for air travel in Brazil.”

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