Charles & Colvard faces Nasdaq compliance issues

Published 03/03/2025, 04:52 PM
Charles & Colvard faces Nasdaq compliance issues

RESEARCH TRIANGLE PARK, N.C. - Charles & Colvard , Ltd. (NASDAQ:CTHR), a company specializing in lab-grown gemstones and ethical fine jewelry, has received a notice from Nasdaq regarding non-compliance with its listing rules due to a delay in filing financial reports. The Nasdaq Listing Qualifications Department issued the notice because the company did not file its Quarterly Report on Form 10-Q for the period ended December 31, 2024, on time.

The notice follows an earlier communication in which Nasdaq accepted Charles & Colvard’s plan to regain compliance and set a deadline of April 14, 2025, for the company to file its overdue Annual Report for the fiscal year ended June 30, 2024, and the Quarterly Report for the quarter ended September 30, 2024. The company must now update its plan of compliance by March 12, 2025. The possibility of an extension for the company to become current with all delinquent filings is limited to the April deadline.

Despite the notice, trading of Charles & Colvard’s common stock on Nasdaq remains unaffected. The company has stated it is working diligently to complete and file the outstanding reports as soon as possible to regain compliance with Nasdaq’s Listing Rule 5250(c)(1).

Charles & Colvard, established in 1995 and headquartered in North Carolina, is known for creating moissanite, a lab-grown gemstone, and for promoting sustainable practices in jewelry production. The company’s commitment includes using 100% recycled precious metals and offering lab-grown diamond brands that prioritize ethical and environmental considerations.

The information in this article is based on a press release statement from Charles & Colvard, Ltd. The company has cautioned that there are no guarantees it will regain compliance with the Nasdaq Listing Rule within the set timeframe or at all, highlighting the uncertainty and potential risks involved.

In other recent news, Charles & Colvard Ltd. has settled a legal dispute with Wolfspeed (NYSE:WOLF), Inc., leading to the termination of an exclusive supply agreement. The jewelry company agreed to pay Wolfspeed $4.77 million, covering inventory costs, legal fees, and interest. This settlement concludes the arbitration initiated by Wolfspeed over alleged contract breaches by Charles & Colvard. The termination of this agreement allows Charles & Colvard to explore other suppliers for their essential silicon carbide materials. Additionally, Charles & Colvard announced changes to its board of directors, with Benedetta Casamento resigning from her position. The board has also amended its bylaws to adjust the number of directors, now allowing for a range of four to nine members. These organizational changes were disclosed in a recent 8-K filing with the Securities and Exchange Commission. Investors are encouraged to keep an eye on these developments, as they may impact the company’s governance and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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