Notice to the Market – TROC acquisition and creation of ZZ Ventures

AREZZO INDÚSTRIA E COMÉRCIO S.A. (“Company” or “Arezzo”), hereby informs its shareholders and the market in general the following.

On November 19th, 2020, ZZAB Comércio de Calçados Ltda. (CNPJ No. 07.900.208/0001-06) (“ZZAB”), a company controlled by the Company, executed the “Purchase and Sale, Subscription of Shares and Other Covenants Agreement” (“Contrato de Compra e Venda, Subscrição de Ações e Outras Avenças”) by and between the Company, Luanna de Carvalho Rodrigues Toniolo Domakoski (CPF No. 059.397.589-83) (“Luanna”) and Aya Holding De Participações Ltda. (CNPJ No. 33.674.459/0001-20) (“Agreement”) to set forth, among other matters, the acquisition, by ZZAB, of equity in TROC.COM.BR – Atividades de Internet S.A. (CNPJ No. 24.783.757/0001-67) (“TROC” and “Transaction”).

Under the terms of the Agreement, upon the implementation of the Transaction, ZZAB will acquire, by means of purchase and sale, equity of TROC held by its current shareholders, and ZZAB will make capital contributions through increasing TROC’s capital stock, so that ZZAB will become TROC’s controlling shareholder. With the completion of the Transaction, ZZAB and other companies controlled by the Company will hold approximately 75% of the total and voting capital stock of TROC.

TROC is a technology startup focused on circular economy, which has as one of its differentials the provision of services of curation, registration, pricing, and sale of clothes on its platform. Within the scope of TROC’s activities, the seller (individual) sends the clothes through the Post Office or schedules the collection at home and, after the sale of the clothes, TROC keeps a percentage of such value (“take rate”).

In addition to the Transaction, the Company formalizes the establishment of ZZ Ventures, the corporate venture capital segment of Arezzo&Co group, which will be responsible for seeking new startups of several segments aiming to expand the Company’s operations on the technology and innovation fronts.

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