Lucara has sold its stake in the Clara to its original founders, a group led by the HRA Group of Companies and Eira Thomas (“Founders”).
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 Clara Diamond Solutions GP Inc., Clara Diamond Solutions Limited Partnership, and Clara Diamond Solutions B.V., including all intellectual property rights, commercial contracts, and operating assets. The total consideration comprises approximately $3 million in cash at closing and the return of 10,000,000 Lucara common shares initially issued as partial consideration when Lucara originally acquired the Clara platform in 2018, and the transfer of liabilities tied to sales performance metrics or a change of control, amounting to a share issuance obligation of 13,400,000 Lucara common shares.
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.
William Lamb, President and CEO of Lucara commented, "The divestiture of Clara enables us to intensify our strategic focus on maximizing returns and long-term value creation at our world-class Karowe Diamond Mine in Botswana. The Company's core competencies and future growth reside in the successful execution of the Karowe underground expansion project. While the Clara platform provides an innovative digital channel for rough diamond sales, the successful onboarding of other producers’ rough production required to scale the platform, remains unattainable while the platform is owned by a pure-play diamond producer. Lucara maintains its conviction, reinforced by our supply agreement with Clara, that this technology will play an important role in the shaping of a demand driven diamond sector.”
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, 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.”