Brazil Securities Commission orders NLC Confinamentos and Mineradora NLC to stop unregistered offerings including Nelore Coin and NLCD

The Brazil Securities Commission (CVM) issued Deliberation CVM 907 ordering NLC Confinamentos S/A, Mineradora NLC Ltda. and their direct and indirect partners Emerson Renato Muller and Marcos Rodrigo Matias to immediately suspend public offering activities of securities to residents in Brazil. The action follows supervisory findings of indications that the group has been marketing investment opportunities with remuneration linked to purported cattle breeding and gold mining operations through websites and an open messaging app group, in a structure that meets the legal definition of a security. CVM stated that the companies and individuals are not authorised to publicly offer securities or collective investment contracts, and pointed to the sale of participation in NLC Confinamentos S/A, the Nelore Coin (NLC) token and the dividend-like asset referred to as NLCD as unregistered public offerings without registration or an exemption. Non-compliance with the order may result in a daily coercive fine of BRL 100,000, alongside potential administrative sanctioning proceedings and applicable penalties for alleged violations committed prior to the deliberation under Article 11 of Law 6,385. CVM also encouraged investors and others who receive proposals from the cited entities to report the approach to the regulator with details of the offer and the individuals involved.