# EDGAR Filing Document

**Accession Number:** 0001015155
**File Stem:** 0002015561-25-000004
**Filing Date:** 2025-9
**Character Count:** 7361
**Document Hash:** 7f51e503ff0d43d6f464c6dbee3e93a9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0002015561-25-000004.hdr.sgml**: 20250903

**ACCESSION NUMBER**: 0002015561-25-000004

**CONFORMED SUBMISSION TYPE**: DFAN14A

**PUBLIC DOCUMENT COUNT**: 1

**FILED AS OF DATE**: 20250903

**DATE AS OF CHANGE**: 20250902

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHARLES & COLVARD LTD
- **CENTRAL INDEX KEY:** 0001015155
- **STANDARD INDUSTRIAL CLASSIFICATION:** JEWELRY, SILVERWARE & PLATED WARE [3910]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 561928817
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** DFAN14A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23329
- **FILM NUMBER:** 251286921

**BUSINESS ADDRESS:**
- **STREET 1:** 170 SOUTHPORT DRIVE
- **CITY:** MORRISVILLE
- **STATE:** NC
- **ZIP:** 27560
- **BUSINESS PHONE:** 9194680399

**MAIL ADDRESS:**
- **STREET 1:** 170 SOUTHPORT DRIVE
- **CITY:** MORRISVILLE
- **STATE:** NC
- **ZIP:** 27560

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** C3 INC /NC/
- **DATE OF NAME CHANGE:** 19970829
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Riverstyx Capital Management LLC
- **CENTRAL INDEX KEY:** 0002015561

**ORGANIZATION NAME:**
- **EIN:** 842126899
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DFAN14A

**BUSINESS ADDRESS:**
- **STREET 1:** 3661 VALVERDE CIR
- **CITY:** JACKSONVILLE
- **STATE:** FL
- **ZIP:** 32224
- **BUSINESS PHONE:** 9042945879

**MAIL ADDRESS:**
- **STREET 1:** 3661 VALVERDE CIR
- **CITY:** JACKSONVILLE
- **STATE:** FL
- **ZIP:** 32224

```

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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SCHEDULE 14A

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Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
(Amendment No.    )

Filed by the Registrant [ ]
Filed by a Party other than the Registrant [X]

Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by
    Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[X] Soliciting Material under Rule 14a-12

CHARLES & COLVARD, LTD.
(Name of Registrant as Specified in its Charter)

RIVERSTYX CAPITAL MANAGEMENT, LLC
RIVERSTYX FUND, LP
RIVERSTYX FUND, GP
BEN FRANKLIN
MICHAEL R. LEVIN
LLOYD M. SEMS
(Name of Person(s) Filing Proxy Statement, if Other Than the
Registrant)

Payment of Filing Fee (Check all boxes that apply):
[X] No fee required.
[ ] Fee paid previously with preliminary materials.
[ ] Fee computed on table in exhibit required by Item 25(b) per
    Exchange Act Rules 14a-6(i)(1) and 0-11.

----------------------------------------
FOR IMMEDIATE RELEASE

Charles & Colvard Shareholder Riverstyx Capital Slams Charles &
Colvard Board for Handing Itself Nearly 40% of Company

Board Awards Self Equity at Absurd Discount of $0.15 per Share

Jacksonville, FL -- [Date] -- Riverstyx Capital Management, LLC
("Riverstyx"), a significant shareholder of Charles & Colvard, Ltd.
(OTC: CTHR) (the "Company"), today released a letter to CTHR
shareholders.

To shareholders of Charles & Colvard:

Last week our Company announced a new equity compensation plan for
senior executives and also the Board of Directors. We write to explain
the plan, if you have not reviewed it, and to express our strong
opposition to it.

In short, this plan represents blatant self-enrichment at the expense
of long-suffering shareholders. At a time when Charles & Colvard's
stockholders have endured years of value destruction, the Board has
chosen to reward insiders with massive equity grants -- including
nearly double the allocation to the Executive Chairman compared to the
CEO -- while simultaneously leaving shareholders diluted and without a
voice.

We shareholders deserve a Board that prioritizes stewardship,
accountability, and fair governance -- not one that rubber-stamps
sweetheart deals for itself. We will fight against this dilution of
shareholder value and continue pressing for the urgent reforms Charles
& Colvard needs.

The Board adopted a Fiscal 2026 Executive Incentive Program on August
21, 2025. It grants management and directors the right to acquire
nearly 1.2 million shares -- equivalent to almost 40% of the Company's
outstanding common equity -- while exposing shareholders to both
dilution and cash drain. Specifically, the plan:

- Allocates 480,000 units to the Executive Chairman alone, twice the
  CEO's allocation.
- Allows grants to directors themselves, undermining board independence.
- Fixes a baseline valuation of just $0.1478 per share -- effectively
  gifting insiders penny-priced stock. Valuation reverts to a market
  price if and when trading volume exceeds 100,000 shares per day, so
  it provides for cash payouts tied to higher market prices if volume
  increases.
- Includes a cash payout option that could divert hundreds of thousands
  of dollars from the Company's already fragile balance sheet directly
  into insiders' pockets.

Riverstyx recently submitted nominations for three highly qualified
independent directors to stand for election at the upcoming Annual
Meeting of Shareholders. The firm urges fellow shareholders to join in
demanding change and restoring integrity to the Company's governance.

Please feel free to contact me to discuss this development or the
Company overall.

Ben Franklin, CFA
Riverstyx Capital Management

About Riverstyx Capital:
Riverstyx Capital Management, LLC is an investment firm based in
Jacksonville, FL, focused on small- and micro-cap companies worldwide.
Riverstyx takes an active role in working constructively with companies
to unlock long-term shareholder value through improved governance,
capital allocation, and strategy.

Contact:
Ben Franklin, CFA
Riverstyx Capital Management
info@riverstyxcapital.com

----------------------------------------
Important Additional Information Regarding Proxy Solicitation

Riverstyx, its affiliates, and nominees intend to file a proxy statement
and proxy card with the SEC in connection with the solicitation of
proxies for the Company's upcoming Annual Meeting. Riverstyx, its
affiliates, and nominees will be participants in the solicitation of
proxies from shareholders in respect of the Annual Meeting. Information
regarding Riverstyx, its affiliates, and nominees and their respective
interests in the Company's securities or otherwise is set forth in
Riverstyx's Schedule 13D, filed with the SEC on September 2, 2025.
Details concerning the nominees of the Charles & Colvard Board of
Directors for election at the upcoming Annual Meeting will be included
in the proxy statement to be filed for the Annual Meeting. BEFORE MAKING
ANY VOTING DECISION, INVESTORS AND SHAREHOLDERS OF CHARLES & COLVARD
ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED TO THE
SEC, INCLUDING RIVERSTYX'S DEFINITIVE PROXY STATEMENT AND ANY AMENDMENTS
AND SUPPLEMENTS THERETO ONCE AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. These documents, including the definitive proxy
statement (and any amendments or supplements thereto) and other documents
filed by Riverstyx, its affiliates, and nominees with the SEC, are or
will be available for no charge at the SEC's website at http://www.sec.gov.

```