Charles & Colvard enters stalking horse asset sale agreement for $1.5M in Chapter 11

CHARLES & COLVARD LTD

Asset purchase price of $1.5M, subject to credit bid against $364 financing from buyer.
Buyer: Van Lang Jewelry LLC / Jewelry Design Partners LLC; former director Duc Pham is manager of affiliate.
Break-up fee of $45,000 and expense reimbursement up to $45,000 if terminated for higher bid.
Sale subject to higher bids, Bankruptcy Court approval; closing by July 7, 2026.
Company warns common stock holders may experience significant or complete loss.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

CHARLES & COLVARD LTD entered into the "Purchase Agreement" with Van Lang Jewelry LLC or its affiliate Jewelry Design Partners LLC (the "Buyer") valued at $1,500,000 (effective 2025-04-15).

Action: entry
Agreement: asset purchase
Counterparty: Van Lang Jewelry LLC or its affiliate Jewelry Design Partners LLC (the "Buyer")
Value: $1,500,000
Effective: 2025-04-15

Exact text from the filing

On April 15, 2025, the Company finalized negotiations of an Asset Purchase Agreement (the "Purchase Agreement") with Van Lang Jewelry LLC or its affiliate Jewelry Design Partners LLC (the "Buyer"), pursuant to which, subject to the terms and conditions set forth therein, including approval of the Bankruptcy Court, the Buyer agreed to acquire the assets of the Company (except for the Excluded Assets, as listed on Schedule 1 thereto) and assume certain liabilities (the "Transaction"), for consideration of $1,500,000

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Source: SEC EDGAR

accession 0001104659-26-045530

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