BRF S.A.
COMPANHIA ABERTA
CNPJ 01.838.723/0001-27
NIRE 42.300.034.240
CVM 16269-2
MATERIAL FACT
BRF S.A. ("BRF" or the "Company") (B3: BRFS3; NYSE: BRFS), in compliance with Article 157, §4º, of Law No. 6.404/76 and in accordance with Instruction CVM No. 358, as of January 3, 2002, informs its shareholders and the market in general, that the Company’s Board of Director, on the date hereof, approved the Company’s share buyback program (“Share Buyback Program”) under the following conditions:
· The Goal of the Company with the Share Buy Back Program: is to acquire the shares to maintain them in treasury, cancel or to later sell them in the market as well as to comply with the obligations assumed by the Company under the Stock Option Plan, approved in the Company’s Ordinary and Extraordinary Shareholders’ Meeting dated as of April 8, 2018 and under the Restricted Stock Option Plan, approved in the Company’s Ordinary and Extraordinary Shareholders’ Meeting dated as of April 8, 2015, altered in the Company’s Ordinary and Extraordinary Shareholders’ Meeting dated as of April, 26, 2017, in the Company’s Extraordinary Shareholders’ Meeting dated as of May 25, 2018 and in the Company’s Ordinary and Extraordinary Shareholders’ Meeting, dated as of April 29, 2019;
· Maximum quantity of shares to be purchased: up to 7,500,000 (seven million and five hundred thousand) common shares;
· Quantity of free float shares, in accordance with the definition provided under Article 8, §3 of Instruction CVM No. 567/2015: 802,179,773 common shares (based on the shareholding position as of March 26, 2020);
· Quantity of shares held in treasury on the date hereof: 713,446 common shares (based on the shareholding position as of March 26, 2020);
· The Company understands that the acquisition of its own shares will not impact its shareholding composition nor its administrative structure;
· The shares acquired under the Share Buyback Program will be used for the implementation of Stock Option Plan and the Restricted Stock Option Plan. In case they are not used for this purpose, the shares may be later cancelled or once again sold in the market;
· Term for the acquisition of the Company’s shares under the Share Buyback Program: 12 months, starting from March 27, 2020 and ending on March 26, 2021. The Executive Board will define the dates on which the buyback will be effectively executed;
· The financial institution that will act as intermediary is: BRADESCO S.A. CORRETORA DE TÍTULOS E VALORES MOBILIÁRIOS, CNPJ 61.855.045/0034-09, Avenida Brigadeiro Faria Lima, 3950, 11º Andar, São Paulo – SP / CEP: 04534-011;
· The acquisitions under the Share Buyback Program will be supported by the Company’s capital reserve, as provided in the Company’s financial statements relating to the fiscal year ending on December 31, 2019, corresponding to R$192,845,436.04;
· The members of the Board of Directors understand that the Company’s current financial situation is compatible with the implementation of the Share Buyback Program under the approved conditions and consider that the buyback of shares will not harm the obligations assumed before the Company’s creditors. This conclusion results from the evaluation of the potential financial amounts to be deployed in the Share Buy Back Program when compared with (i) the level of obligations assumed before its creditors, as the Company has payment capacity to comply with its financial obligations; and (ii) the amount available in cash, cash equivalents and financial investments.
São Paulo, March 26 de 2020.
Carlos Alberto Bezerra de Moura
Chief Financial and Investor Relations Officer