Charles & Colvard Announces Closing of a New Three-Year $10 Million Secured Credit Facility

  Charles & Colvard Announces Closing of a New Three-Year $10 Million Secured
  Credit Facility

Business Wire

MORRISVILLE, N.C. -- June 30, 2014

Charles & Colvard, Ltd. (NASDAQ: CTHR), the exclusive global supplier of
moissanite and Forever Brilliant^®, The World’s Most Brilliant Gem^®, has
closed a new three-year $10 million asset-backed credit facility with Wells
Fargo Bank. The Company’s previous credit facility with PNC Bank was
terminated concurrently with the closing on the new credit facility. The new
credit facility provides Charles & Colvard working capital for general
corporate purposes and to pursue continued growth opportunities.

“By securing this three-year credit facility from Wells Fargo, Charles &
Colvard is better positioned to pursue growth initiatives,” said Randy N.
McCullough, CEO of Charles & Colvard.

The new credit facility is secured by Charles & Colvard assets, subject to
customary covenants. It carries an interest rate at Wells Fargo Bank’s
three-month LIBOR rate plus 2.5 percent. The company currently does not have
any other long-term debt and the new credit facility is undrawn.

About Charles & Colvard, Ltd.

Charles & Colvard, Ltd., is the global sole source of moissanite, a unique,
near-colorless created gem that is distinct from other gems and jewels based
on its exceptional fire, brilliance, luster, durability, and rarity. Charles &
Colvard Created Moissanite^® and Forever Brilliant^® are currently
incorporated into fine jewelry sold through domestic and international
retailers and other sales channels. Charles & Colvard, Ltd.’s common stock is
listed on the NASDAQ Global Select Market under the symbol “CTHR.” For more
information, please visit  www.charlesandcolvard.com.

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of
Section27A of the Securities Act of 1933, as amended, and Section21E of the
Securities Exchange Act of 1934, as amended. Statements expressing
expectations regarding our future and projections relating to products, sales,
revenues, and earnings are typical of such statements and are made under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, statements about our plans,
objectives, representations, and contentions and are not historical facts and
typically are identified by use of terms such as “may,” “will,” “should,”
“could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“continue,” and similar words, although some forward-looking statements are
expressed differently.

All forward-looking statements are subject to the risks and uncertainties
inherent in predicting the future. You should be aware that although the
forward-looking statements included herein represent management’s current
judgment and expectations, our actual results may differ materially from those
projected, stated, or implied in these forward-looking statements as a result
of many factors including, but not limited to, our dependence on consumer
acceptance and growth of sales of our products resulting from our strategic
initiatives; dependence on a limited number of customers; the impact of the
execution of our business plans on our liquidity; our ability to fulfill
orders on a timely basis; the financial condition of our major customers;
dependence on Cree, Inc. as the sole current supplier of the raw material; our
current wholesale customers’ potential perception of us as a competitor in the
finished jewelry business; intense competition in the worldwide jewelry
industry; general economic and market conditions, including the current
economic environment; risks of conducting business in foreign countries; the
pricing of precious metals, which is beyond our control; the potential impact
of seasonality on our business; our ability to protect our intellectual
property; the risk of a failure of our information technology infrastructure
to protect confidential information and prevent security breaches; possible
adverse effects of governmental regulation and oversight, including
regulations related to conflict minerals; and the failure to evaluate and
integrate strategic opportunities, in addition to the other risks and
uncertainties described in our filings with the Securities and Exchange
Commission, or the SEC, including our Annual Report on Form 10-K for the
fiscal year ended December 31, 2013 and subsequent reports filed with the SEC.
Forward-looking statements speak only as of the date they are made. We
undertake no obligation to update or revise such statements to reflect new
circumstances or unanticipated events as they occur except as required by the
federal securities laws, and you are urged to review and consider disclosures
that we make in the reports that we file with the SEC that discuss other
factors relevant to our business.

Contact:

Public Relations:
Dian Griesel Int’l.
Susan Forman, Laura Radocaj
212-825-3210
or
Investor Relations:
Taglich Brothers, Inc.
Christopher Schreiber, 212-661-6886
 
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