Charles & Colvard, which makes jewelry out of moissanite, could be removed from trading on the Nasdaq after not complying with the index’s listing rules.
According to a filing with the Securities and Exchange Commission on Friday, the Morrisville company was informed by Nasdaq’s Listing Qualifications Department that its shares had closed trading below the minimum bid price of $1 per share for 30 consecutive business days.
Charles & Colvard now has 180 days to regain compliance by closing at or above $1 per share for 10 consecutive business days or face being delisted from the exchange.
The company, which went public November 1997, said it intends to actively monitor the bid price of its common stock and will consider available options to regain compliance before its April 10 deadline.
Using moissanite, a mineral the company says is one of the rarest found in nature, Charles & Colvard produces and sells jewelry at cost much lower than that of jewelry made with real diamonds.
If the company is unable to achieve compliance by the deadline, it may be given an additional 180 days, if its public shares carry a market value of at least $1 million at that time and it notifies the Nasdaq of its intent to fix the issue.
For the second quarter of 2018, Charles & Colvard reported net sales of $6.4 million and a net loss of 3 cents per share. According to its most recent proxy statement, CEO Suzanne Miglucci’s overall compensation declined 40.9 percent this year, to $307,432 from $520,136 last year. Clint J. Pete, the company’s chief financial officer, saw his 2018 overall compensation drop 49.6 percent, with his salary cut 45.9 percent.
The company closed at 88 cents per share Monday, down 6.38 percent from the previous week’s close. Charles & Colvard last closed in compliance with the Nasdaq on Sept. 7, at $1.01.
Charles & Colvard’s annual shareholder’s meeting will be Thursday, Nov. 8, at 10 a.m. at its offices at 170 Southport Drive in Morrisville.
Samantha Schisler contributed to this story from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism