BRAZILIAN ELECTRIC POWER CO

AXIA Energia S.A. announced that its American Depositary Receipts (ADRs) have commenced trading on the U.S. over-the-counter (OTC) market under new ticker symbols AXIAY for Common Shares and AXICY for Class C Preferred Shares. Concurrently, the company filed Form 15F with the U.S. Securities and Exchange Commission (SEC) to terminate its registration and suspend its reporting obligations. The deregistration is anticipated to become effective 90 days following the filing.

AXIA Energia S.A. announced a partial mandatory redemption of 37,237,014 Class "C" preferred shares (PNC Shares), representing approximately 6.14% of the outstanding PNC Shares, valued at R$2,000,000,000. The redemption price is R$53.71 per share, with an effective date of August 24, 2026. Holders of PNC Shares have the option to convert their shares into common shares at a 1.1:1 ratio, while ADS holders will receive a cash payment in US$. The company's ADSs will cease trading on the NYSE after August 7, 2026, and will subsequently trade on the OTC Market Group's Pink Limited Market.

BRAZILIAN ELECTRIC POWER CO reported strong financial performance for Q2 2026, with Adjusted Regulatory EBITDA increasing by 21.5% year-over-year to R$6.68 billion. The company also saw a 52.6% rise in investments to R$3.12 billion and approved R$3.7 billion in capital for allocation. Strategic moves included migration to B3’s Novo Mercado, significant transmission auction wins, and portfolio management activities like divestments and consolidation.

AXIA Energia S.A. (AXIA) has announced the redemption of its Class "C" preferred shares (PNC), detailing the tax treatment for shareholders. The record date for the redemption is August 07, 2026, with a redemption amount of R$ 53.71 per share, payable on August 24, 2026. Brazilian resident investors may be subject to income tax on gains, while non-resident investors may face Withholding Income Tax (WHT) at rates ranging from 15% to 25%. Non-resident shareholders are required to submit their acquisition cost information by August 13, 2026, to ensure proper tax calculation, with penalties for non-compliance.

AXIA Energia S.A. announced the second redemption/conversion operation for its Class C Preferred Shares (PNC). The company's Board of Directors approved the redemption of 37,237,014 PNC shares, totaling R$ 2.0 billion, at R$ 53.71 per share. Shareholders have the option to convert their PNC shares into common shares at a 1:1 ratio between August 12 and August 14, 2026, with the conversion date set for August 18, 2026. ADR holders will have their shares mandatorily redeemed.

AXIA Energia reported strong second-quarter 2026 results, with Adjusted Net Income (IFRS) reaching R$ 1,608 million, a 9.5% increase year-over-year, and Adjusted Regulatory EBITDA growing 21.5% to R$ 6,683 million. The company also completed its migration to B3's Novo Mercado, simplifying its capital structure and strengthening corporate governance. Strategic investments surged 52.6% to R$ 3,117 million, alongside significant portfolio management activities including acquisitions and divestments totaling over R$ 1.8 billion in proceeds and payments.

AXIA Energia S.A. has revised the procedures and deadlines for the redemption or conversion of its Class "C" preferred shares (PNC Shares). The new process shortens the timeline, with common shares resulting from conversion delivered in 9 trading sessions and redemption payments made in 13 trading sessions, replacing the previous 12 and 16 business-day periods. The company also clarified the process for non-resident investors and stated that ADR holders will have their PNC shares mandatorily redeemed.

AXIA Energia S.A. announced that its Board of Directors approved the allocation of up to R$ 3.7 billion, based on its second-quarter 2026 results, for the purpose of redeeming Class C preferred shares. This new allocation brings the total capital available for redemption in the first half of 2026 to R$ 7.7 billion, including the R$ 4.0 billion approved for the first quarter. The company emphasized that this decision aligns with its capital allocation methodology, reinforcing financial discipline and value creation for shareholders.

AXIA Energia S.A. announced that its American Depositary Receipts (ADRs) will cease trading on the New York Stock Exchange after the close of trading on August 6, 2026. Effective August 7, 2026, the company's ADRs will transition to trading on the U.S. over-the-counter (OTC) market. Concurrently, AXIA Energia will file Form 15F with the SEC to deregister its securities and suspend its reporting obligations, with deregistration expected to become effective 90 days after the filing.

AXIA Energia S.A. and AXIA Nordeste S.A. completed the unwinding of cross-holdings with ISA Energia Brasil S.A. in transmission assets IE Madeira and IE Garanhuns. This involved AXIA Energia selling its 49% equity interest in IE Madeira and AXIA Nordeste acquiring ISA Energia's 51% equity interest in IE Garanhuns. The transaction resulted in net proceeds of R$1.167 billion for AXIA Energia. Following the deal, AXIA Energia now fully consolidates 100% ownership of IE Garanhuns, while ISA Energia fully consolidates IE Madeira.