Charles & Colvard Commences Voluntary Restructuring Process

FOR IMMEDIATE RELEASE

RESEARCH TRIANGLE PARK, N.C. - March 3, 2026 - Charles & Colvard, Ltd. (OTC: CTHR) ("Charles & Colvard" or the "Company"), a leading producer of lab-grown gemstone jewelry, today announced that it is initiating a comprehensive restructuring of the Company to better position the business for long-term success. To facilitate the process, the Company has filed a voluntary petition for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of North Carolina (the "Court").

Charles & Colvard intends to use the Chapter 11 process to implement the broad changes necessary to position the Company to continue to deliver its unique lab-grown jewelry products. The Company believes the Chapter 11 process will provide Charles & Colvard with the tools, time, and flexibility to engage in discussions with creditors and other parties in interest to implement a financial and operational transformation of the Company. The Company is filing customary motions with the Court to enable it to conduct business as usual during the restructuring process.

"Charles & Colvard has a unique brand and product line, supported by superb employees and suppliers," said Michael R. Levin, Executive Chairman of the Board of Directors. "After thoroughly evaluating our alternatives and considering recent events and the market pressures facing our industry, the Company's Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure Charles & Colvard's long-term success."

Customers can continue to shop with confidence for the Company's lab-grown fine jewelry at charlesandcolvard.com, with business operations continuing in the ordinary course without interruption.

"As this process unfolds, the Company remains fully committed to serving its customers, supporting its partners, and preserving the value of its brand," continued Levin. "On behalf of the Company's Board of Directors and leadership, I want to thank our employees and suppliers for their continued dedication."

Additional Information

The company will post updates at its Investor Relations website, https://ir.charlesandcolvard.com.

About Charles & Colvard, Ltd.

Charles & Colvard, Ltd. (OTC: CTHR) believes that fine jewelry should be as ethical as it is exquisite. Charles & Colvard is the original creator of lab-grown moissanite (a rare gemstone formed from silicon carbide). The Company brings revolutionary gems and fine jewelry to market by using exclusively Made, not Mined^TM above-ground gemstones and a dedication to 100% recycled precious metals. The Company's Forever One™ moissanite and Caydia^® lab-grown diamond brands provide exceptional quality, incredible value, and a conscious approach to bridal, high-fashion, and everyday jewelry. Charles & Colvard was founded in 1995 and is based in North Carolina's Research Triangle Park region. For more information, please visit charlesandcolvard.com.