Charles & Colvard Faces Default on $2 Million Convertible Note from Ethara Capital
Charles & Colvard, Ltd. entered into a Convertible Secured Note Purchase Agreement with Ethara Capital LLC, under which the company issued a convertible secured note for a total purchase price of $2.0 million. The note, dated July 3, 2025, was due and payable on October 3, 2025. Following a failure to pay the principal and accrued interest on the maturity date, Ethara Capital issued a notice of default to Charles & Colvard on November 25, 2025. As a result, the interest rate on the note increased from 5% to 9%, and Ethara Capital has asserted the right to demand immediate full payment and potentially repossess or liquidate collateral under the security agreement. The validity of the default is currently being litigated, and discussions between the two parties are ongoing.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Charles & Colvard Ltd. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001104659-25-118916), on December 05, 2025, and is solely responsible for the information contained therein.
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