Key Takeaways
- • LUXUS, a self-described luxury alternative investment platform, exits beta and goes live with its third IPO: a 5-carat, D-color, Flawless round brilliant-cut diamond sponsored by Kwiat, with a stated market capitalization of $400,000 and pre-marketing at $250 per share.
- • The offering is the first asset in The Flawless Collection and is described as a Type IIa stone, a category the release says makes up less than 1% of all diamonds.
- • LUXUS formally launches LUXUS VIP, an investment-plus-concierge program offering preferred access to alternative investments, advance notice of IPOs, and management fee discounts for members above an investment threshold.
- • An affiliate of LUXUS is anticipating a Tier 2 Regulation A offering; per the release, no money can be accepted until the offering statement is qualified by the SEC.
Summary
LUXUS, which describes itself as the world's first luxury alternative investment platform, initially focused on precious gems and high jewelry, has emerged from its beta phase with the launch of its live website, according to a Business Wire release dated March 15, 2023. The platform's third IPO is a 5-carat, D-color, Flawless round brilliant-cut diamond, ethically sourced and sponsored by Kwiat. The release gives the stone a market capitalization of $400,000 and says it is available for pre-marketing on the LUXUS platform at $250 per share. It is the first asset in what LUXUS calls The Flawless Collection.
The release states that the diamond belongs to the Type IIa category, which it says makes up less than 1% of all diamonds. The rough was sourced from Lucara Diamond Corp.'s Karowe mine in Botswana, in production since 2012, and cut exclusively for LUXUS by Kwiat in Antwerp, Belgium. Founder and CEO Dana Auslander said that over the past three years, large, investment-grade diamonds of flawless clarity have significantly outperformed the S&P 500 (SPX) and gold, a claim the release supports with a footnote describing a sample of 5.00 to 5.99 carat diamonds in which D FL stones represented 15% of the sample. Greg Kwiat, CEO of Kwiat, described the process as transparent and focused on positive social impact. The release notes that during its 2022 beta, LUXUS partnered with Kwiat/Fred Leighton on an Argyle pink diamond and announced a second IPO, the Golden Dahlia, a Fancy Vivid Yellow diamond ring with a $1.5 million market capitalization that sold privately before going live.
LUXUS is also formally launching LUXUS VIP, a program for investors who hold above a set threshold. Benefits described include first-time access to alternative investments, private events, advance notice of IPOs, and management fee discounts. Auslander said family offices and ultra-high-net-worth investors are seeking both unique investments and community, and positioned LUXUS offerings as alternatives to gold, real estate and equities amid what she described as a macro flight to quality. The release also states that an affiliate of LUXUS anticipates a Tier 2 Regulation A offering. Per the release, no money or consideration can be accepted until the offering statement is qualified by the SEC, and the offering circular is available on the SEC's EDGAR database.
The release states that the diamond belongs to the Type IIa category, which it says makes up less than 1% of all diamonds. The rough was sourced from Lucara Diamond Corp.'s Karowe mine in Botswana, in production since 2012, and cut exclusively for LUXUS by Kwiat in Antwerp, Belgium. Founder and CEO Dana Auslander said that over the past three years, large, investment-grade diamonds of flawless clarity have significantly outperformed the S&P 500 (SPX) and gold, a claim the release supports with a footnote describing a sample of 5.00 to 5.99 carat diamonds in which D FL stones represented 15% of the sample. Greg Kwiat, CEO of Kwiat, described the process as transparent and focused on positive social impact. The release notes that during its 2022 beta, LUXUS partnered with Kwiat/Fred Leighton on an Argyle pink diamond and announced a second IPO, the Golden Dahlia, a Fancy Vivid Yellow diamond ring with a $1.5 million market capitalization that sold privately before going live.
LUXUS is also formally launching LUXUS VIP, a program for investors who hold above a set threshold. Benefits described include first-time access to alternative investments, private events, advance notice of IPOs, and management fee discounts. Auslander said family offices and ultra-high-net-worth investors are seeking both unique investments and community, and positioned LUXUS offerings as alternatives to gold, real estate and equities amid what she described as a macro flight to quality. The release also states that an affiliate of LUXUS anticipates a Tier 2 Regulation A offering. Per the release, no money or consideration can be accepted until the offering statement is qualified by the SEC, and the offering circular is available on the SEC's EDGAR database.
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