LUCARA ANNOUNCES SALE OF CLARA DIAMOND SOLUTIONS
Clara is a rough diamond digital marketplace that modernizes how rough diamonds are sold, using technology to connect buyers and sellers, driving economic efficiencies for buyers and sellers. Clara enables verification technologies to efficiently integrate provenance and traceability services by transacting individual rough diamonds. This innovation addresses the industry's need for improved standards of transparency and trust.
Under the terms of the definitive sale agreement, the Founders will acquire 100% ownership of Lucara's interests in
Lucara will retain a 3% Net Profit Interest on Clara's net earnings. The Company has also granted Clara a 5-year rough diamond supply agreement for stones meeting the size and quality specifications historically sold through the Clara platform. This supply agreement may be terminated after the second anniversary or as otherwise mutually agreed between the parties.
Aaron Ariel, current Managing Director and original founder of Clara says, "Nine years ago, while at our factory sorting through a mountain of rough diamonds – many of which we didn't need but were required purchases bundled inseparably with product needed to fulfill urgent orders, we had a big idea for a technology that could transform the global rough diamond market for everyone. Today, we are excited about the opportunity to realize its full potential, which remains largely unexplored. We believe it will become the industry's premier global rough diamond marketplace. We look forward to partnering with stakeholders throughout the supply chain who share our vision for a healthier, more transparent, and, last but certainly not least, a more profitable industry for all. We would like to thank the Clara team who have worked so hard over these past years building Clara and cannot wait to work together to take it to the next level."
The effective transaction date is
On behalf of the Board,
President and Chief Executive Officer
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ABOUT LUCARA
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned
THE HRA GROUP
ADDITIONAL INFORMATION
The information is information that Lucara is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, on
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as "forward-looking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements in this news release include statements regarding the timing of closing of the transaction and our expectation that the transaction will close, the expected proceeds and returned shares that we expect to record, our expectations regarding use of proceeds and common shares, and the impact of the supply and market demand for, and the price volatility of, rough and polished diamonds.
These statements are based on a number of assumptions, including, but not limited to, assumptions that the conditions to closing will be satisfied or waived in a timely manner. Factors that may cause actual results to vary include, but are not limited to, unforeseen complications in satisfying all conditions to closing. Forward-looking statements are made as of the date of this news release and, except as required by law, Lucara undertakes no obligation to update publicly or otherwise revise any forward-looking statements. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our most recent Annual Information Form and MD&A available at SEDAR+ at www.sedarplus.ca.
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