Charles & Colvard Secures $2M Convertible Note Agreement Amid Financial Challenges and Delisting Risks

Charles & Colvard has secured a $2M convertible note agreement with Ethara Capital, granting Ethara Capital the right to appoint directors and observers to Charles & Colvard's board. The deal is subject to shareholder approval and allows for conversion into common stock. Spark's AI Analyst has given CTHR a "Underperform" rating due to severe financial challenges, poor valuation, and the risk of Nasdaq delisting.

Charles & Colvard (NASDAQ: CTHR) has secured a $2M convertible note agreement with Ethara Capital, granting Ethara Capital the right to appoint directors and observers to Charles & Colvard's board. The deal is subject to shareholder approval and allows for conversion into common stock. This move comes amidst severe financial challenges and a "Underperform" rating from Spark's AI Analyst due to poor valuation and the risk of Nasdaq delisting [1].

The convertible note agreement, which is subject to shareholder approval, provides Ethara Capital with significant influence over Charles & Colvard's board. This strategic partnership could potentially help the company navigate its financial difficulties and secure additional funding. However, the company faces immediate challenges, including a recent notice from Nasdaq regarding non-compliance with listing requirements [2].

Charles & Colvard's share price has fallen below the minimum required bid price of $0.10 per share, leading to a Nasdaq delisting risk. The company is scheduled to appear before a Nasdaq Hearings Panel on July 17, 2025, to address this issue. Historically, companies in similar situations have attempted to regain compliance through measures like reverse stock splits, but the extremely low price threshold of $0.10 suggests that existing remedial actions may have been insufficient.

Portman Ridge Finance Corporation (PTMN) shareholders recently approved a merger with Logan Ridge Finance Corporation (LRFC), set to close on July 15, 2025. This merger is expected to create a larger, more efficient platform, positioning the combined company for long-term growth. The merger also includes a significant share repurchase initiative to enhance shareholder value [3].

References:
[1] https://www.stocktitan.net/news/GTI/graphjet-technology-discloses-notice-from-3q976k5ehx9l.html
[2] https://www.nasdaq.com/articles/portman-ridge-finance-corporation-secures-shareholder-approval-merger-logan-ridge-finance
[3] https://www.nasdaq.com/articles/portman-ridge-finance-corporation-secures-shareholder-approval-merger-logan-ridge-finance