GREENVILLE, S.C., June 23, 2014 (GLOBE NEWSWIRE) — Scio Diamond Technology Corporation (Scio) (OTCQB:SCIO) a leading manufacturer of lab-grown diamond for the gemstone and industrial marketplace, today announced further restructuring of its Board of Directors with the following statement:
“Today, the Scio Diamond Technology Corporation Board of Directors, after extensive discussions, is announcing a transition from the Board team that took the Company public to a team the Board anticipates will take the Company to profitability and future growth. Effective immediately, Edward Adams, Scio’s Co-Chairman and co-founder has resigned from the Company’s Board of Directors as have fellow Directors, Robert Linares (principal inventor of the technology), Theodorus Strous, and Gerald McGuire.”
“The Board would like to thank Messrs. Adams, Linares and Strous for their many years of dedicated service to Scio and their vision in developing the Company’s exciting technology,” stated Bruce Likly, one of Scio’s current Co-Chairmen. Mr. Likly added: “We are incredibly appreciative for the Board’s positioning of Scio to capitalize on its substantial market opportunity. We thank Messrs. Adams, Linares, Strous and McGuire for their tireless and professional service to Scio, and wish them well. Additionally, effective immediately, we are pleased to announce the addition of Mr. Bernard McPheely, Mr. Ben Wolkowitz, Mr. Lewis Smoak and Mr. Karl Leaverton to the Company’s Board of Directors. Mr. James Korn, the Board’s current Secretary and myself will remain on the Board. New Board leadership will be decided and announced in the coming weeks.”
On behalf of the Save Scio Group, Bernard McPheely, noted: “as Scio is evolving from a development-stage company to a viable commercial enterprise and as we move to our future, we thank those, including Messrs. Adams, Linares, Strous and McGuire, who have served the Company’s past. We are excited to have a resolution that allows Scio to move forward. All parties involved in this process wish to see Scio succeed in the future while enhancing value for all stockholders.”
The Board is confident in the future of the Company and views this transition as an opportunity to focus on operational issues and execution of the Company’s strategy. Scio’s aim is to become the preeminent mass producer of cultured diamond in the world for industrial and gemstone markets.
The Board also announced that it is implementing other corporate governance changes pursuant to a settlement agreement, including the repeal of its amended and restated bylaws and its stockholder rights plan. The Save Scio Group has also agreed to terminate its consent solicitation.
The Company expects to hold an annual meeting to elect the new directors following the filing of its Form 10-K for the fiscal year ended March 31, 2014.
Scio employs a patent-protected chemical vapor deposition process to produce high-quality, single-crystal diamonds in a controlled laboratory setting. These are known as “lab-grown” diamonds. Lab-grown diamonds have chemical, physical and optical properties identical to “earth-mined” diamonds. The Company’s manufacturing process produces high-quality, high-purity, single-crystal colorless, near colorless and fancy colored diamonds.
Scio’s technology offers the flexibility to produce lab-grown diamonds in size, color and quality combinations that are rare in earth-mined diamonds. Additionally, Scio is capable of producing diamonds that have the structural, optical and electronic characteristics for industrial, medical and semiconductor applications.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Scio to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “could,” “would,” “forecast,” “potential,” “continue,” “contemplate,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.