Charles & Colvard Receives Nasdaq Non-Compliance Notice
Updated 08/21, 6:30 p.m. President said the company is "positioned to move through this transitional period.”
Anthony DeMarco, Senior Editor -- JCK-Jewelers Circular Keystone, 8/19/2008 5:54:00 PM
Charles & Colvard, Ltd., said Tuesday that it received a notice from the Listing Qualifications division of the Nasdaq Stock Market indicating that the company's common stock is subject to potential delisting from the Nasdaq Global Select Stock Market because, for the last 30 consecutive business days, the bid price of the company's common stock has closed below the minimum $1 per share required by Marketplace Rule 4450(a)(5).
The Morrisville, N.C.-based company, the sole source of moissanite, a created jewel available for use in fine jewelry, said it received the Nasdaq notification Monday.
Dennis M. Reed, Charles & Colvard president and chief marketing officer, told JCK Thursday that the company looks at the Nasdaq warning as a procedural issue. He said the challenge is gaining investor confidence after reporting an operating loss for its first two quarters of 2008, including a the second quarter loss of $1.6 million. However, he says the company is in a good position to turn this around.
“The company has to show investors that it can report financial profits and gain investor confidence,” he said. “But if you look at our balance sheet there’s no debt and we have cash in the bank. We are positioned to move through this transitional period.”
According to the Marketplace Rule 4450(e)(2), Charles & Colvard will be provided 180 calendar days, or until Feb. 17, 2009, to regain compliance. If, at anytime before Feb. 17, 2009, the bid price of the company’s common stock closes at $1 per share or more for a minimum of 10 consecutive business days (subject to Nasdaq’s discretion to extend the 10-day period), Nasdaq’s staff will provide written notification that it has achieved compliance with the rule.
Charles & Colvard stock closed at 73 cents per share Thursday.
