Scio Asks Stockholders to Ignore 'Dissident Group'

(IDEX Online) – Scio Diamond Technology Corp is requesting that stockholders "not participate in solicitation efforts" by a "small group of dissident stockholders" in a filing to the US Securities and Exchange Commission.

Scio, which uses a chemical vapor deposition process to produce high-quality, single-crystal diamonds in a controlled laboratory setting, said that consents solicited by the group are not permitted under the company's bylaws and will have no effect.

This small group is principally made up of people who have sued the company and its Board of Directors earlier and those matters were dismissed. Recently, in certain SEC filings, company CEO Michael McMahon was named by the group of shareholders as one of persons participating in the solicitation of written consents from Scio shareholders.

McMahon said: "Although I shared with a member of the group that I was willing to be nominated as a director, as I have with the current Board, I am not a participant in their solicitation, I am not now nor do I have any plans on working with them and I do not otherwise support their proposals in any manner."

Board Chairman Edward Adams said, "The group's attack on the company's performance ignores the strong progress that we have made in the face of challenges inherent in this emerging industry."

McMahon stated: "Under the current Board's leadership, we are advancing our technology for the mass production of diamonds, while we continue to explore the huge potential of our awesome technology. The company continues its efforts to increase value by creating joint ventures, licensing technology, increasing sales, lowering overhead and operating costs, increasing revenue, lowering capital costs and dramatically improving our technology."

He added that "the proposals and maneuvers like this one by anyone, cause the company to incur additional unnecessary costs, that we just cannot afford, and are detrimental to all of our shareholders."

McMahon stated that, "The management team of Scio has and will continue to support and execute the actions of the Board. In my judgment, during my tenure as CEO, the Board's actions have intended to enhance and protect shareholder value."