MORRISVILLE — Charles & Colvard Ltd., a jewelry manufacturer that uses a lab-created diamond alternative, could be removed from trading on the Nasdaq after not complying with the index’s listing rules.
According to a filing with the Securities and Exchange Commission Friday, the Nasdaq’s Listing Qualifications Department informed the Morrisville, North Carolina-based company that its shares had closed trading below the minimum bid price of $1 per share for 30 consecutive business days.
Charles & Colvard (Nasdaq: CTHR) now has 180 days to regain compliance by closing at or above $1 per share for 10 consecutive business days.
The company, which went public November 1997, said it intends to actively monitor the bid price of its common stock and will consider available options to regain compliance before the deadline of April 10, 2019.
Using moissanite, a mineral the company says is one of the rarest found in nature, Charles & Colvard produces and sells jewelry at cost much lower than that of jewelry made with real diamond.
If the company is unable to achieve compliance with the rule in question by the deadline, it may be given an additional 180 days, given that its public shares carry a market value of at least $1 million at that time and it notifies the Nasdaq of its intent to fix the issue. If Charles & Colvard is not eligible for that additional period of time, Nasdaq will inform the company that its common stock is subject to delisting.
In that case, Charles & Colvard will be allowed to appeal the delisting to a Nasdaq hearing panel. The filing stated that there can be no assurance any such appeal would be successful.
According to the company’s newest proxy statement, CEO Suzanne Miglucci saw her overall compensation decline 40.9 percent this year, to $307,432 from $520,136 last year. That stemmed primarily from her annual salary compensation being cut in half.
Clint J. Pete, Charles & Colvard’s chief financial officer, saw his 2018 overall compensation drop 49.6 percent, with his salary being cut 45.9 percent.
The company was trading at 91 cents on Monday. Charles & Colvard last closed in compliance with the Nasdaq on Sept. 7, at $1.01.
This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism
