On Oct. 12, moissanite company Charles & Colvard received a notice from Nasdaq, warning the company to get its share price above $1 or face possible delisting.
According to an 8-K filed with the Securities and Exchange Commission (SEC), the company’s stock price has traded below $1 per share for 30 consecutive business days, which means that it is no longer in compliance with one of the exchange’s listing rules.
As a result, Charles & Colvard has 180 business days—until April 10, 2019—to regain compliance. To do that, its stock has to close at $1 or more for a minimum of 10 consecutive business days.
Even if the company doesn’t pull that off, the exchange may grant it another 180 days to regain compliance, provided the company’s market value is at least $1 million, and it meets other Nasdaq listing criteria. Otherwise, Nasdaq will provide Charles & Colvard with a written notification that its common stock is subject to delisting. Any delisting can be appealed, the company noted.
Charles & Colvard “intends to actively monitor the bid price of its common stock and will consider available options to regain compliance with the listing requirements,” said the filing.
The company declined further comment beyond its statement to the SEC.
At press time, the company’s stock was still trading for less than $1, as it has since the middle of September. It received a similar notice from Nasdaq in 2008 and was able to regain compliance.
Based in Morrisville, N.C., Charles & Colvard first filed for an IPO in 1997, under its prior name, C3.
In its most recent financial results, reflecting the second quarter of 2018 (ended June 30), the company said that its sales fell 4 percent to $6.4 million, and it reported a $700,000 net loss.
On July 13, the company announced it had obtained a $5 million asset-based revolving credit facility from White Oak Commercial Finance, which will be used for general corporate and working capital purposes.
(Image courtesy of Charles & Colvard)