StoneCo Ltd., Form 6-K, Report of Foreign Private Issuer, May 2020

Summary

StoneCo Ltd. files a Form 6-K for the month of May, 2020 that carries its announcement of actions to address the impacts of the COVID-19 pandemic, dated May 12, 2020. The announcement releases a CEO Letter from Thiago Piau to the Stone team and lists four priorities, including protecting the health and safety of the team and clients and keeping the business financially strong. It says approximately 90% of Stone team members are working from home, and lists R$30 million in relief to clients, R$100 million in microlending, R$5 million toward a temporary hospital in Rio de Janeiro, and R$500,000 for 10,000 COVID-19 tests. The signature block shows /s/ Thiago dos Santos Piau, Chief Executive Officer.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2020

Commission File Number: 001-38714

STONECO LTD.

(Exact name of registrant as specified
in its charter)

4th Floor,
Harbour Place

103 South
Church Street, P.O. Box 10240

Grand
Cayman, KY1-1002, Cayman Islands

+55 (11)
3004-9680

(Address
of principal executive office)

Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F | X | Form 40-F

Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

StoneCo Ltd. Announces Actions to Address Impacts of COVID-19 Pandemic

George
Town, Grand Cayman, May 12, 2020 -- StoneCo Ltd. (Nasdaq: STNE) (“Stone”) today publicly released a CEO Letter
from Thiago Piau to the Stone team. An English version of the CEO letter is attached to this
announcement.

The
announcement today is part of a series of measures we are taking in
the context of the COVID-19 crisis, which focus on four main priorities:

1. | protecting
 the health and safety of our team and our clients;
2. | helping
 small and medium businesses withstand this crisis and reinvent their businesses
 in this new environment;
3. | contributing to our communities
 through public health initiatives and support for local businesses; and
4. | keeping
 our business financially strong, improving operational efficiency and allocating capital
 wisely.

On
priority 1 approximately 90% of Stone team members are working from home, including most salespeople, who are working
remotely and onboarding clients through telephone and chat. We have distributed protective equipment to our teams and are
providing regular information on how to prevent the disease, identify symptoms and continue to serve clients safely. We have
also established a 24/7 digital health support to all our employees.

On
priorities 2 and 3, we have acted on many fronts, including creating a campaign and a platform to encourage the public to buy
locally and help small and medium businesses. The campaign ( https://cuidedopequenonegocio.com.br/ ),
which reached millions of people, makes available tools to enable clients to sell online and better manage their digital and social
sales channels. To support health and safety within our communities we have: (i) provided R$30 million in relief to our clients,
including subscription exemptions and lower prepayment rates for the hardest-hit sectors; (ii) provided R$100 million in microlending
to meet our clients' liquidity needs; (iii) contributed R$5 million to the construction of a temporary hospital in Rio de Janeiro;
and (iv) donated R$500,000 for the purchase of 10,000 COVID-19 tests.

1

On priority
4 above, to keep our business financially strong we have taken steps to further strengthen our balance sheet, enhance liquidity,
and improve our operational efficiency, while maintaining the quality of our services. We have been a safe harbor for our clients,
providing daily liquidity for their working capital needs. We have increased operational efficiency through a redesign of processes.
Finally, we are been very diligent in managing costs and expenses, as well as capital expenditures in order to support our profitability
and enable us to keep allocating capital wisely for our future growth and the evolution of our products.

While
our balance sheet position is strong, and we are seeing partial volume recovery in April and early May, we
believe that our mission to help entrepreneurs in Brazil requires from us even harder work and discipline. We believe that
together society will overcome this challenge and create a better and healthy future.

We will
be happy to provide more detail on the measures we are taking on our 1Q20 Conference Call
on May 26 th , 2020.

About Stone

Stone is
a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels
and help them grow their businesses.

Contact:

Investor
Relations

investors@stone.co

https://investors.stone.co/

2

SIGNATURE

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

StoneCo Ltd.
By: | /s/ Thiago dos Santos Piau
Name: | Thiago dos Santos Piau
Title: | Chief Executive Officer

Date:
May 12, 2020

EXHIBIT
INDEX

Exhibit No. | Description
99.1 | Letter from Thiago dos Santos Piau, Chief Executive Officer of StoneCo Ltd. dated May 12, 2020

File and source

File

dp127973-6k-htm_c5ed2924d9495442.html

Size

23,862 bytes

SHA-256

fbbdecdc887c8b2a3e1bc15ba4ac6d7ad74d00206a69fc01a5c8b1f43d92062a

Our copy

dp127973-6k-htm_c5ed2924d9495442.html

Original

www.sec.gov