Key Highlights

● Lavoro announced a voluntary delisting from the Nasdaq Global Market on 13 February 2026, with the last Nasdaq trading day set for 23 February.

● The ordinary shares are now quoted on OTC Markets under LVROF, and market data updated on 2 October 2026 showed a price of $0.001.

● A petition seeking conversion to judicial recovery was filed in Paraná on 7 July 2026, with total Debt put at more than R$2.5 billion.

● Stores in the south-east are being cut from 43 to 25, headcount has fallen from 615 to about 350, and headquarters are moving to Ponta Grossa.

Lavoro Limited (OTC:LVROF) trades over the counter because its board chose to leave Nasdaq. The company announced a voluntary delisting from the Nasdaq Global Market on 13 February 2026, and its ordinary shares are now quoted on OTC Markets under the code LVROF. Market data updated on 2 October 2026 shows a price of $0.001, and the company is also working through a deep restructuring of its Brazilian operations.

Business and Sector

Lavoro operates in the agricultural inputs retail market, with operations in Brazil and Colombia and an emergent agricultural input trading company in Uruguay, according to market data. Market data classifies the Business in industrials, within trading companies and distributors, so its fortunes depend on Brazilian farm activity and on the financing available to a heavily indebted retail network.

The Delisting Announcement

In the delisting announcement, the last Nasdaq trading day was set for 23 February 2026, with a Form 25 to follow on 24 February and a Form 15 to suspend SEC reporting on 6 March 2026. The board cited the challenging market environment in Brazil and concluded that the burdens of operating as a publicly traded company outweighed the advantages. It pointed to low trading volume, a small United States Shareholder base, limited institutional interest and substantial compliance costs under Sarbanes-Oxley and SEC rules.

The company also warned that trading afterwards would occur only in privately negotiated sales and potentially on an over-the-counter market, with no guarantee that a broker would make a market. Lavoro had received Nasdaq non-compliance notices in July and November 2025 for delayed filings.

Restructuring and Operational Cuts

A Brazilian agribusiness news report dated 9 July 2026 gives the clearest picture of what followed. It traces an extrajudicial recovery process begun in June 2025, with the plan homologated in November 2025 on the support of 63 per cent of creditors. In March 2026, Arcos Gestão e Investimento acquired control from Patria Investimentos.

The report adds that a preliminary protective measure was filed on 29 April 2026, that a judge ruled on 12 June 2026 against transferring the venue to Paraná, and that a new petition was filed on 7 July 2026 seeking conversion to judicial recovery in Paraná. Total debt was put at more than R$2.5 billion.

Operationally, the group is shrinking. Stores in the south-east are being cut from 43 to 25, with a plan to close down to 13, all in Paraná. Headcount has fallen from 615 to about 350, and headquarters are moving from São Paulo to Ponta Grossa. Reported Revenue in Paraná stores for the 2025/2026 harvest was R$410.5 million, against R$1.051 billion for 2024/2025. São Paulo stores generated R$49.4 million, against R$456.6 million a year earlier.

Financial Snapshot and Risks

Market data lists total debt of $1.70 billion, total cash of $279.56 million, trailing free Cash Flow of negative $945.22 million and Book Value per share of negative $2.57, with Enterprise value of $209.48 million. These are market data figures and have not been matched to the latest filings, but they point to a Balance Sheet in which liabilities exceed assets.

The risks are significant. Judicial recovery proceedings can alter creditor and shareholder rights, a thinly followed over-the-counter quote may not reflect value, and without SEC reporting, disclosure is far less frequent than before. Market data also shows no scheduled Earnings reports or Dividend announcements, so no scheduled catalyst exists.

Judicial Recovery, Creditor Plans and the Fate of the Remaining Store Network

The open items are the Paraná court's handling of the judicial recovery petition, any updated creditor plan, further store closures and the revenue of the remaining network in the next harvest. Company notices on where the shares will continue to trade, and on what recoveries Equity holders might see, have yet to appear.