In the process of delisting, the owner of Hard Rock in Brazil is suspended at CVM – 06/08/2021 – Market

VCI (Venture Capital Participações e Investimentos SA), responsible for the Hard Rock Hotel projects in Brazil, had its registration as a publicly-held company suspended by the CVM (Securities Commission) this Tuesday (8).

The suspension was triggered after a delay of more than a year in providing information to the municipality. While registration is suspended, the company cannot have the securities issued by it admitted to trading on the market. In addition, there is a daily fine of R$300.00.

In 2017, VCI acquired the right to use the Hard Rock brand in the Brazilian market, in a 28-year partnership. Currently, the company is building eight hotels that, when ready, will be operated by the Hard Rock group.

The units in São Paulo, Fortaleza and the first phase of Ilha de Sol, in Paraná, are scheduled for delivery in 2022. Recife and Natal should be ready in 2024. Foz de Iguaçu, in 2025, Campos do Jordão, in 2027 and Jericoacoara, in 2028.

The Hard Rock brand started as a restaurant chain in London, in 1971. Today, it is present in several countries and has been operating in the hotel business since 1995. In Brazil, the group arrived in 2015, with a café in Curitiba.

VCI says that the temporary suspension of registration has no impact on its projects, it only limits the issuance of new shares at B3 during this period, which the company has not done since 2018. VCI’s plan is to go private.

“The delay in sending was a strategy of the company, as VCI SA acquired a 90% stake in HRH Ilha do Sol Empreendimentos SA, in the state of Paraná, had a significant corporate restructuring in early 2021, it chose not to send the statements to avoid reservations in your balance sheet,” said the VCI through its advisory.

The company hired Crowe as an auditor to rework and review all 2020 financial statements and deliver them by the end of June. According to VCI, the data was not previously submitted because it could be reviewed by the auditors.

It is noteworthy that the audited balance sheets are unqualified and the company recorded a profit in previous years.

In addition, in November 2020, VCI made the full and advance payment of R$47 million related to the totality of debentures issued, withdrawing all debt papers from circulation on the Brazilian Stock Exchange.

“The company does not have, therefore, more public debt and will start, as previously announced, the delisting process”, says Bernardo Sperandio, director of investor relations at VCI.

When they were issued, the papers were also targeted by the CVM. After finding irregularities in the information for the sale of VCI debt securities, the regulator suspended the operation and the companies that worked on the offer.

At the time, CVM determined that, for a period of one year, the distributor Orla, the trustee Vórtx, the risk rating agency LFRating and also Venture Capital would be prohibited from participating in any public offering of securities on the market with restricted efforts – those intended only for qualified investors.

On Tuesday, the CVM also suspended the registration as a publicly-held company of Advanced Digital Health Medicina Preventiva SA for the same reason. THE leaf he was not able to contact the company until the publication of the report.


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