Charles & Colvard enters $2M convertible note deal; CEO/CFO waive severance

CHARLES & COLVARD LTD

Issues $2M convertible secured note to Ethara Capital in two tranches: $500k first closing, $1.5M second closing.
Note bears 5% interest (cash or PIK), matures 3 months from issuance; extendable up to 39 months.
Note is secured with second priority lien, subordinated to Wolfspeed Inc. debt of $2.44M.
Ethara Capital receives right to appoint two directors before first closing and two observers after second closing.
CEO Don O'Connell and CFO Clint Pete waive all severance benefits under employment agreements as condition.

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