secwatch.observer — SEC 8-K summary
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Issuer:     CHARLES & COLVARD LTD (—)
CIK:        0001015155
Form:       8-K
Filed at:   2025-06-27T23:59:59+00:00
Accession:  0001104659-25-063622
Event type: debt
Sentiment:  negative
Materiality: 0.70
Item codes: 1.01, 2.03, 3.02, 5.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1015155/000110465925063622/0001104659-25-063622-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1015155/000110465925063622/tm2519259d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-25-063622

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