Editor’s Note
This announcement marks a significant strategic shift for Charles & Colvard, leveraging its partnership with Ethara Capital to expand its lab-grown diamond business. The move capitalizes on growing consumer demand and Ethara’s established manufacturing expertise in the CVD process.
Strategic Partnership Announcement
Charles & Colvard, Ltd. (OTC: CTHR), a globally recognized fine jewelry company specializing in moissanite and lab-grown diamonds, today announced plans to expand its lab-grown diamond (“LGD”) offerings to consumers and wholesale markets. This expansion is supported by the supply chain capabilities of its strategic investor, Ethara Capital (“Ethara”). Ethara’s affiliates pioneered Chemical Vapor Deposition (CVD) LGD manufacturing and currently own and operate over 3,000 diamond-growing machines.
Financial Background
In June, Ethara Capital announced a Convertible Secured Note Purchase Agreement with Charles & Colvard. In September, it converted the first 10% of its Note into the Company’s common equity.
Executive Commentary
“As consumer awareness of lab-grown diamonds continues to accelerate, we see a significant opportunity to expand our LGD products to leverage our online platforms and wholesale distribution channels to meet that growing demand,” said Don O’Connell, President and CEO of Charles & Colvard.
“We are excited to welcome Ethara and its affiliates as strategic investors and supply chain partners. Our partnership with Ethara Group, one of the largest growers in the LGD industry, brings to us an expanded, vertically integrated, and global supply chain of CVD lab-grown diamonds, and, we believe, will unlock tremendous growth opportunities for us,” continued O’Connell.
Product and Platform Expansion
This partnership will broaden the Company’s Caydia® lab-grown diamond fine jewelry offerings with new bridal and fashion designs on charlesandcolvard.com. For the first time, it will also enable approved retailers to purchase lab-grown diamonds through the Company’s B2B platform, charlesandcolvarddirect.com.
Charles & Colvard Direct, the Company’s online wholesale portal launched last year, will now allow approved retailers and independent jewelers to browse and purchase certified and non-certified loose lab-grown diamonds in various shapes, carat weights, and grading profiles. This addition marks a natural expansion of the platform’s existing offerings, which include the Company’s Forever One™ and Forever Bright™ moissanite product brands.
“Our goal has always been to empower our partners and customers with exceptional, high-quality, and responsibly made gemstones,” O’Connell continued. “By expanding our LGD jewelry assortments and offering loose stones through our wholesale platform, we’re strengthening our positioning in the lab-grown category and giving our customers direct access to lab-grown gems with the quality and consistency they rely on from Charles & Colvard.”
Investor Perspective
“Charles & Colvard has consistently led the charge in responsibly made gemstones and fine jewelry for decades,” said Ruten Bhanderi, Managing Partner at Ethara Capital. “Our investment and supply chain partnership with the Company demonstrates our excitement and aligns with our commitment to support companies reshaping the diamond industry through continuing innovation and vertical integration. Together with our global diamond growing partners, we look forward to elevating Charles & Colvard to new heights as Made, not Mined™ gemstones usher the world into a new diamond age characterized by affordability, quality, consistency, versatility, and social responsibility.”
