Charles & Colvard, Ltd. (NASDAQ: CTHR), the exclusive global supplier of
moissanite and Forever Brilliant®, The World’s Most Brilliant
Gem®, has closed a new three-year $10 million asset-backed
credit facility with Wells Fargo Bank. The Company’s previous credit
facility with PNC Bank was terminated concurrently with the closing on
the new credit facility. The new credit facility provides Charles &
Colvard working capital for general corporate purposes and to pursue
continued growth opportunities.
“By securing this three-year credit facility from Wells Fargo, Charles &
Colvard is better positioned to pursue growth initiatives,” said Randy
N. McCullough, CEO of Charles & Colvard.
The new credit facility is secured by Charles & Colvard assets, subject
to customary covenants. It carries an interest rate at Wells Fargo
Bank’s three-month LIBOR rate plus 2.5 percent. The company currently
does not have any other long-term debt and the new credit facility is
undrawn.
About Charles & Colvard, Ltd.
Charles & Colvard, Ltd., is the global sole source of moissanite, a
unique, near-colorless created gem that is distinct from other gems and
jewels based on its exceptional fire, brilliance, luster, durability,
and rarity. Charles & Colvard Created Moissanite®
and Forever Brilliant® are currently
incorporated into fine jewelry sold through domestic and international
retailers and other sales channels. Charles & Colvard, Ltd.’s common
stock is listed on the NASDAQ Global Select Market under the symbol
“CTHR.” For more information, please visit www.charlesandcolvard.com.
Forward-Looking Statement
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Statements
expressing expectations regarding our future and projections relating to
products, sales, revenues, and earnings are typical of such statements
and are made under the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to,
statements about our plans, objectives, representations, and contentions
and are not historical facts and typically are identified by use of
terms such as “may,” “will,” “should,” “could,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “continue,” and similar
words, although some forward-looking statements are expressed
differently.
All forward-looking statements are subject to the risks and
uncertainties inherent in predicting the future. You should be
aware that although the forward-looking statements included herein
represent management’s current judgment and expectations, our actual
results may differ materially from those projected, stated, or implied
in these forward-looking statements as a result of many factors
including, but not limited to, our dependence on consumer acceptance and
growth of sales of our products resulting from our strategic
initiatives; dependence on a limited number of customers; the impact of
the execution of our business plans on our liquidity; our ability to
fulfill orders on a timely basis; the financial condition of our major
customers; dependence on Cree, Inc. as the sole current supplier of the
raw material; our current wholesale customers’ potential perception of
us as a competitor in the finished jewelry business; intense competition
in the worldwide jewelry industry; general economic and market
conditions, including the current economic environment; risks of
conducting business in foreign countries; the pricing of precious
metals, which is beyond our control; the potential impact of seasonality
on our business; our ability to protect our intellectual property; the
risk of a failure of our information technology infrastructure to
protect confidential information and prevent security breaches; possible
adverse effects of governmental regulation and oversight, including
regulations related to conflict minerals; and the failure to evaluate
and integrate strategic opportunities, in addition to the other risks
and uncertainties described in our filings with the Securities and
Exchange Commission, or the SEC, including our Annual Report on Form
10-K for the fiscal year ended December 31, 2013 and subsequent reports
filed with the SEC. Forward-looking statements speak only as of
the date they are made. We undertake no obligation to update or
revise such statements to reflect new circumstances or unanticipated
events as they occur except as required by the federal securities laws,
and you are urged to review and consider disclosures that we make in the
reports that we file with the SEC that discuss other factors relevant to
our business.
Copyright Business Wire 2014