secwatch / observer
8-K filed June 27, 2025, 7:59 PM ET CIK 0001015155
debt confidence high sentiment negative materiality 0.70

CHARLES & COLVARD LTD: debt financing — Charles & Colvard enters $2M convertible note deal; CEO/CFO waive severance

CHARLES & COLVARD LTD

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

CHARLES & COLVARD LTD incurred convertible notes of $500,000 with Ethara Capital LLC at 5% maturing three months following the date the Note is issued.

Instrument
convertible notes
Principal
$500,000
Counterparty
Ethara Capital LLC
Rate
5%
Maturity
three months following the date the Note is issued
Event
incurrence
Exact text from the filing
On June 24, 2025, Charles & Colvard, Ltd. (the “Company”) entered into a Convertible Secured Note Purchase Agreement (the “Note Purchase Agreement”) with Ethara Capital LLC (the “Holder”), a Delaware limited liability company. In connection with the Note Purchase Agreement, the Company agreed to issue a convertible secured note (the “Note”) to the Holder for an aggregate total purchase price of $2.0 million, to be issued in two tranches: (i) an initial closing in the amount of $500,000 (the “Original Principal Amount”) on or before July 8, 2025 (the “First Closing”), and (ii) a subsequent and final closing of $1.5 million (the “Additional Principal Amount”) on such date as the Company and the Holder thereafter agree, but no later than July 23, 2025 (the “Second Closing,” and together with the First Closing, the “Closings”). The principal amount on which interest will accrue is equal to the Original Principal Amount as such amount may be (i) increased by payment of PIK Interest (as defi
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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

CHARLES & COLVARD LTD incurred convertible notes of $1.5 million with Ethara Capital LLC at 5% maturing three months following the date the Note is issued.

Instrument
convertible notes
Principal
$1.5 million
Counterparty
Ethara Capital LLC
Rate
5%
Maturity
three months following the date the Note is issued
Event
incurrence
Exact text from the filing
On June 24, 2025, Charles & Colvard, Ltd. (the “Company”) entered into a Convertible Secured Note Purchase Agreement (the “Note Purchase Agreement”) with Ethara Capital LLC (the “Holder”), a Delaware limited liability company. In connection with the Note Purchase Agreement, the Company agreed to issue a convertible secured note (the “Note”) to the Holder for an aggregate total purchase price of $2.0 million, to be issued in two tranches: (i) an initial closing in the amount of $500,000 (the “Original Principal Amount”) on or before July 8, 2025 (the “First Closing”), and (ii) a subsequent and final closing of $1.5 million (the “Additional Principal Amount”) on such date as the Company and the Holder thereafter agree, but no later than July 23, 2025 (the “Second Closing,” and together with the First Closing, the “Closings”).
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Source: SEC EDGAR
accession 0001104659-25-063622
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