Benny Landa’s LUSIX wants to reach a debt settlement with its creditors to stabilize the company after lab-grown diamond prices fell by 90% on global markets.
Beneland’s Lab Grown Diamond (LGD) Product Lucix Losix is expected to seek a settlement after failing to raise money from existing investors led by LVMH (Louis Vuitton Moet Hennessey) Luxury Ventures, as well as Israeli investors More Provident and Pension Funds, Maverick Ventures, Gabi Dishi’s Ragnar Crossover Fund and its partner Alpha Investments. Sources close to Benny Lande say the war has made it difficult to find investors for the company. Losix owes $15 million to Bank Leumi, Israel Discount Bank and Amot Investments.
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Losix wants to reach a debt settlement with its creditors to stabilize the company and give itself breathing room for several weeks until it reaches an agreement with an international Israeli jewelry chain as well as agreements with existing investors on a recovery plan.
Losix has so far raised an estimated $150 million, including $60 million from the Land Group, founded by serial entrepreneur Benny Landau, and $90 million from other major investors led by LVMH. The company has been hurt by the sharp decline in the price of lab-grown diamonds on the free market, due to massive investments in them in India, which made production in Israel unprofitable. Since India flooded the market with lab-grown diamonds, prices have fallen by more than 90%.
This article was published in Globes, Israeli Business News – en.globes.co.il – on August 18, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
Benny Landa Credit: Eyal Izhar
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