GREENVILLE, SC, April 22, 2014 /PRNewswire/ - Scio Diamond Technology Corporation (OTCQB: SCIO) ("Scio" or the Company") comments on the filing with the Securities and Exchange Commission made by a small group of dissident stockholders.
As an initial matter, the Company notes that the consents solicited by the group are not permitted under the Company's bylaws and will have no effect. As a result, the Company requests that stockholders not participate in the solicitation efforts by the group. 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, Michael McMahon was named by the group of shareholders as one of persons participating in the solicitation of written consents from Scio shareholders. Mr. McMahon, the Company's Chief Executive Officer, stated: "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."Speaking for the Board, "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" Chairman of the Board, Edward Adams stated. 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, as shown in our recent press release on 4" technology." McMahon also stated "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."