Vitru Limited (NASDAQ:VTRU) Q3 2022 Earnings Conference Call November 10, 2022 4:30 PM ET

Company Participants

Carlos Freitas – Chief Financial Officer

Conference Call Participants

Lucca Marquezini – Itau BBA

Mirela Oliveira – Bank of America

Vitor Tomita – Goldman Sachs

Lucas Nagano – Morgan Stanley

Mauricio Cepeda – Credit Suisse

Operator

Good evening, ladies and gentlemen, and welcome to Vitru’s Third Quarter 2022 Earnings Conference Call. All participants are in a listen-only mode now. Later on, we will conduct the question-and-answer session and instructions will follow at that time. As a reminder, this call is being recorded and will be available on Vitru’s IR website.

Now, I would like to introduce the host for today’s conference call, Mr. Carlos Freitas, Vitru’s CFO. You may begin.

Carlos Freitas

Thank you, operator. Good evening, everyone, and thanks for joining us again. It’s a real pleasure to be here with you all for the release of our third quarter 2022 numbers. Here with me, I have Pedro Graca and William Matos, our two co-CEOs; Maria Carolina Gonçalves, the Head of Investor Relations; and [indiscernible] from our Investor Relations team. A slide presentation, as you know, will be part of today’s webcast, which is also available on our IR website at investors.vitru.com.br. So, I trust you all have the presentation in front of you. And before I begin, I’d like to make note that as detailed in Page 2 of the presentation, safe harbor is in effect for the call.

So, now I’d like to invite you all to go to Page 4 of this presentation. Here, we show some important highlights of the last months. First one is, as you remember, we announced an investment agreement with Crescera Capital for an amount of R$300 million, fully primary capital increase, which, by the way, was closed today. Today was the closing of the primary capital increase of Crescera into Vitru for a total consideration of roughly $58 million to around R$300 million, which was closed today. So as of today, Crescera is already a shareholder of Vitru.

So, another reference shareholder in our capital table. We also announced a few weeks ago that we were going to launch a Rights Offering that we indeed launched a few weeks ago in October 24, allowing our current shareholders to subscribe for new Vitru common shares at the same price – the USD price – paid by Crescera – so $16.02. So, this process is still ongoing. The deadline for shareholders to accept this and subscribe for the new shares is next week, 17, closing of the transaction will be in the following week on 23. So, I do expect an additional capital increase between R$100 million and R$150 million.