FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of
1934, Section 17(a) of the Public Utility Holding Company Act of
1935 or Section 30(f) of the Investment Company Act of 1940
1. Name and Address of Reporting Person
Chester L.F. Paulson
811 SW Naito Parkway, Suite 200
Portland, OR 97204
2. Date of Event Requiring Statement (Month/Day/Year)
2/16/2001
3. I.R.S. Identification Number of Reporting Person, if an entity (Voluntary)
N/A
4. Issuer Name and Ticker or Trading Symbol
Charles & Colvard, Ltd.(CTHR)
5. Relationship of Reporting Person(s) to Issuer (Check All Applicable)
/ / Director
/ / Officer (give title below)
/X/ 10% Owner
/ / Other (specify below)
6. If Amendment, Date of Original (Month/Day/Year)
N/A
7. Individual or Joint/Group Filing (Check Applicable Line)
/X/ Form filed by One Reporting Person
/ / Form filed by More than One Reporting Person
See next page for list of reporting persons
FORM 3 (CONTINUED)
Table 1 -- Non-Derivative Securities Beneficially Owned
- -------------------------------- --------------------------------- ------------------------------- ---------------------------
1. Title of Security (Instr. 4) 2. Amount of Securities 3. Ownership Form: Direct 4. Nature of Indirect
Beneficially Owned (Instr. 4) (D) or Indirect (I) Beneficial Ownership
(Instr. 5) (Instr. 5)
- -------------------------------- --------------------------------- ------------------------------- ---------------------------
Common Stock 260,400 D
- -------------------------------- --------------------------------- ------------------------------- ---------------------------
Common Stock 1,856,400 I (1)
- -------------------------------- --------------------------------- ------------------------------- ---------------------------
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction
5(b)(v).
Table II -- Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
- -----------------------------------------------------------------------------------------------------------------------------------
1. Title of Derivative 2. Date Exercisable 3. Title and Amount of 4. Converstion 5. Ownership 6. Nature of
Security (Instr. 4) and Expiration Date Securities or Form of Indirect
(Month/Day/Year) Underlying Exercise Derivative Beneficial
Derivative Security Price of Security: Ownership
(Instr. 4) Derivative Direct (D) (Instr. 5)
Security or Indirect
(I) (Instr.
5)
------------------------ ------------------------
Date Expiration Title Amount
Exercisable Date or
Number
of Shares
- ------------------------------------- ------------ ----------- ------------- ---------- --------------- -------------- ------------
Common Stock Warrants (right to buy) 11/14/98 11/14/02 Common Stock 214,592 $18.00 I
- ------------------------------------- ------------ ----------- ------------- ---------- --------------- -------------- ------------
Explanation of Reponses:
(1) Reporting person may be deemed to be the beneficial owner of the securities
pursuant to the rules and regulations of the Securities and Exchange Commision.
The reporting person is a controlling shareholder of Paulson Capital Corp., the
parent of Paulson Investment Company, Inc. (PIC) The securities are held in the
name of PIC.
/s/ CHESTER L.F. PAULSON March 6, 2001
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* Signature of Reporting Person Date
Chester L.F. Paulson
