RESEARCH TRIANGLE PARK, N.C. - Charles & Colvard, Ltd. (NASDAQ: CTHR), known for its moissanite and lab-grown diamond jewelry, has announced that it has successfully regained compliance with Nasdaq's minimum bid price requirement for continued listing. The Nasdaq Listing Qualifications Department confirmed that the company's common stock maintained a minimum bid price of $1.00 or higher per share over the last 10 consecutive business days as of May 31, 2024.
This development follows the company's efforts to align with Nasdaq's Listing Rule 5550(a)(2), which mandates that listed securities maintain a minimum bid price of $1.00 per share. With this achievement, Charles & Colvard has addressed the compliance issue, and Nasdaq considers the matter closed.
Charles & Colvard, established in 1995 and headquartered in North Carolina, prides itself on offering ethically sourced jewelry. The company is the original creator of lab-grown moissanite, a gemstone made from silicon carbide, and is committed to using 100% recycled precious metals in its products. Through its Forever One™ moissanite and Caydia® lab-grown diamond brands, Charles & Colvard aims to provide quality and value while maintaining a responsible approach to its jewelry offerings.
The company's compliance with the Nasdaq listing requirement is a positive step for its continued presence in the market, allowing investors and shareholders to maintain their engagements with the company's stock on the Nasdaq exchange.
The information in this article is based on a press release statement from Charles & Colvard, Ltd.
In other recent news, Charles & Colvard, a pioneer in lab-grown gemstones, reported a 21% decrease in revenue for the third quarter of fiscal year 2024, with net sales totaling $5.3 million. Despite the drop, the company's net loss improved, registering at $3.6 million compared to the previous year's $8.4 million loss.
In other developments, Charles & Colvard has announced a reverse stock split of its common stock at a ratio of one-for-ten. This decision, which reduced the number of outstanding shares from approximately 30.3 million to about 3 million, was approved by shareholders at a special meeting.
Despite the challenges, Charles & Colvard remains optimistic about its future growth prospects, focusing on direct-to-consumer sales, launching new brands and campaigns, and optimizing its inventory management strategies.
The launch of For Everbright, a new gem brand, and a wholesale portal, are part of these strategic initiatives.
InvestingPro Insights
Following the news of Charles & Colvard's compliance with Nasdaq's minimum bid price requirement, a closer look at the company's financial health and stock performance provides additional context for investors. According to real-time data from InvestingPro, Charles & Colvard holds a market capitalization of $6.77 million, reflecting the company's size in the market. Despite recent challenges, the company's commitment to ethical sourcing and innovation in lab-grown gemstones remains a cornerstone of its business model.
An InvestingPro Tip highlights that Charles & Colvard is trading at a low Price / Book multiple of 0.22 as of the last twelve months ending in Q3 2024, suggesting that the stock may be undervalued relative to the company's book value. Additionally, analysts anticipate sales growth in the current year, which could signal a potential turnaround for the company's revenue trajectory, despite a reported revenue decline of 29.69% during the same period.
Investors should note that while the company is not expected to be profitable this year, its liquid assets exceed short-term obligations, providing some financial stability in the near term. The stock has also taken a significant hit, trading near its 52-week low, which may present a buying opportunity for those who believe in the company's long-term prospects.
For more detailed analysis and additional InvestingPro Tips, visit https://www.investing.com/pro/CTHR. Discover comprehensive metrics and insights to better understand Charles & Colvard's position in the market. Plus, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of investment knowledge including 15 additional InvestingPro Tips for Charles & Colvard.
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