Charles & Colvard, Ltd. (NASDAQ:CTHR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement. |
On June 22, 2017, Charles Colvard, Ltd. (the Company) and its
wholly-owned subsidiaries, Charles Colvard Direct, LLC and
charlesandcolvard.com, LLC (formerly known as Moissanite.com, LLC
and collectively with the Company and Charles Colvard Direct,
LLC, the Borrowers), amended the Borrowers $10.0 million
asset-based revolving credit facility (the Credit Facility) from
Wells Fargo Bank, National Association (Wells Fargo), to a Fourth
Amendment to Credit and Security Agreement, dated as of June 22,
2017 (the Credit Agreement Amendment).
The Credit Agreement Amendment extends the maturity of the Credit
Facility to June 25, 2018. The Credit Agreement Amendment also
reduces the interest rate payable on advances under the Credit
Facility to a rate equal to Wells Fargos daily 3-month LIBOR rate
plus 2.00%, calculated on an actual/360 basis and payable monthly
in arrears. In addition, the Credit Agreement Amendment adds a
financial covenant requiring the Borrowers to maintain a minimum
monthly EBITDA through December 2017 if the cash position for the
Borrowers demand deposit account maintained at Wells Fargo falls
below $3.0 million or the Borrowers draw upon the Credit
Facility.
The foregoing description of the Credit Agreement Amendment does
not purport to be complete and is qualified in its entirety by
reference to the Credit Agreement Amendment, a copy of which is
filed as Exhibit 10.1 to this Form 8-K and is incorporated herein
by reference.
| Item 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth in Item 1.01 is incorporated by
reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit No. | Description of Document | |
| 10.1 |
Fourth Amendment to Credit and Security Agreement, dated as of June 22, 2017, by and among Charles Colvard, Ltd., Charles Colvard Direct, LLC, charlesandcolvard.com, LLC (formerly known as Moissanite.com, LLC), and Wells Fargo Bank, National Association |
CHARLES & COLVARD LTD ExhibitEX-10.1 2 v469633_ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 FOURTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT This Fourth Amendment to Credit and Security Agreement,…To view the full exhibit click here About Charles & Colvard, Ltd. (NASDAQ:CTHR)
Charles & Colvard, Ltd. manufactures and distributes Charles & Colvard Created Moissanite jewels (moissanite) and finished jewelry featuring moissanite. The Company’s segments are Wholesale, Moissanite.com and Charles & Colvard Direct. The Company sells loose moissanite jewels and finished jewelry at wholesale to distributors, manufacturers and retailers, and at retail to end consumers through its operating subsidiaries. The Company manages its business primarily through its three distribution channels that it uses to sell its product lines, loose jewels and finished jewelry, which included Charles and Colvard Direct, LLC. The Company sells loose moissanite jewels and finished jewelry featuring moissanite at wholesale to retailers, television (TV) shopping networks, and designers to be sold to end consumers and directly to consumers through its e-commerce sales channel Moissanite.com. The Company primarily sells moissanite jewels, including Forever Classic and Forever Brilliant.