Synthetics Maker Lusix to Sell for $2.5M – Report

Lusix, the Israeli synthetic-diamond producer, will sell to a Japanese diamond-seed maker for NIS 9.5 million (around $2.5 million), despite receiving $152.2 million in investments since its foundation, according to a local news report. 

The deal, which is subject to court approval, calls for investor Naoji Fujimori to make an initial payment of NIS 950,000 ($238,000) and a further 36 payments of NIS 238,000 ($64,000) each, according to Israel business news site Calcalist. Fujimori, the owner of Japanese company EDP, has committed to employing 20 Lusix employees and continuing its operations in Israel, the report continued. However, most of the company’s employees will be laid off, Calcalist said. 

Lusix had amassed debts of NIS 103 million ($28 million), the report added.  

The security situation in Israel made it hard to attract investors to Lusix, according to Calcalist, which cited Shay Bar Nir, the company’s court-appointed trustee. These challenges meant it would be impossible to keep searching for buyers. 

Founded by Israeli entrepreneur Benny Landa in 2016, Lusix raised funds from high-profile investors including LVMH Luxury Ventures, but it was later hit by a decline in synthetic-diamond prices.

Image: Synthetic rough diamonds from Lusix. (Lusix)