Charles & Colvard, the moissanite and lab-grown diamond company, just signed a $2 million deal with Ethara Capital—but it’s not your average cash injection.
It’s a convertible secured note (a.k.a. loan with strings), earning 5% interest and backed by company collateral. Ethara can:
- 🪙 Convert the debt into company shares (with shareholder approval)
- 🪑 Appoint two board members
- 📅 Extend repayment up to three years
The loan comes in two drops:
💰 $500K by July 8
💰 $1.5M by July 23
And here’s the wild part: both the CEO and CFO just gave up their severance benefits as part of the agreement. That’s not something you do unless things are real tight.
Analysts say it’s a fair bet: if the company rebounds, Ethara gets equity. If it tanks, they get first dibs on assets.
Let’s not forget—just this April, Charles & Colvard filed a “going concern” warning in its annual report. Is this the comeback move or a last gasp? Stay tuned.