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    Ben Franklin

    Research Analyst at River stick Capital

    Ben Franklin's questions to CHARLES & COLVARD (CTHR) leadership

    Ben Franklin's questions to CHARLES & COLVARD (CTHR) leadership • Q3 2024

    Question

    Ben Franklin from River stick Capital questioned the company's decision to draw $500,000 from its credit facility, given its reported high cash balance of $9.2 million.

    Answer

    Don O'Connell, President and CEO, explained that the draw was a strategic test to ensure the credit facility was fully functional and accessible if needed. He noted that the associated cost was fractional and considered it a prudent measure to confirm liquidity options.

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    Ben Franklin's questions to CHARLES & COLVARD (CTHR) leadership • Q3 2024

    Question

    Ben Franklin from River stick Capital questioned the rationale for drawing on the company's credit facility, given its high cash balance.

    Answer

    Don O'Connell (executive) explained that the $0.5 million draw was a strategic test to ensure the credit facility was fully operational and accessible, as it had not been utilized in several years. He noted the cost was fractional and considered it a prudent action to preserve cash flexibility.

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