Charles & Colvard, Ltd, has recently encountered a compliance challenge with the Nasdaq Stock Market. On November 21, 2024, the company received a notification from Nasdaq’s Listing Qualifications Department, indicating non-compliance with Listing Rule 5250(c)(1). This rule mandates the timely filing of all required periodic reports. The non-compliance stems from the company’s failure to submit its Quarterly Report on Form 10-Q for the fiscal quarter ending September 30, 2024, which was due on November 14, 2024. Additionally, the company has not yet filed its Annual Report on Form 10-K for the fiscal year ending June 30, 2024.
CHARLES & COLVARD
Despite this notice, there is no immediate effect on the listing or trading of Charles & Colvard’s common stock on Nasdaq. The company has until December 17, 2024, to regain compliance with the Listing Rule or to submit a plan outlining how it intends to achieve compliance. If Nasdaq accepts the company’s plan, it may be granted up to 180 calendar days from the Form 10-K filing due date, extending the deadline to April 14, 2025, to file the required reports and regain compliance. Should Nasdaq not accept the company’s plan, Charles & Colvard has the option to appeal the decision to a Nasdaq Hearings Panel.
In response to the notice, Charles & Colvard has expressed its commitment to resolving the issue promptly. The company is diligently working to complete and file both the Form 10-K and Form 10-Q as soon as practicable to regain compliance with Nasdaq’s Listing Rule.
This development follows a previous compliance challenge earlier in the year, where Charles & Colvard faced potential delisting due to its share price falling below Nasdaq’s minimum bid price requirement. The company addressed this issue by implementing a reverse stock split, which successfully brought its share price back into compliance.
Investors and stakeholders will be closely monitoring Charles & Colvard’s actions in the coming weeks to ensure the company meets the necessary filing requirements and maintains its Nasdaq listing status.
