Scio Diamond Technology Corporation today announced that it has restructured its debt with Heritage Gemstone Investors. The new agreement includes the benefits of an extended maturity date, relief on interest payments, and access to additional funding, the company said.
Under the terms of the agreement, Scio Diamond Technology Corporation’s note maturity has been extended one year to December 2018. The company, which makes synthetic diamonds for the gemstone and industrial markets, will receive relief on interest payments and be given access to additional HGI funding, said the company.
HGI’s increased funding commitment of $250,000 will be matched dollar for dollar by investors including members of the Scio Diamond board of directors and management team, said the company.
“We’ve made significant progress with our white diamonds recently, and I am excited by the rapid growth we are seeing in the market,”said Gerald McGuire, CEO of Scio Diamond. “Our board and lender, HGI, recognize the incredible opportunity we have before us and I believe this announcement demonstrates their support of the company’s efforts.
“Our customer base has recognized these improvements and are creating stunning gemstones from our rough,” added McGuire. “Scio Diamond expects to ramp up its production of white diamonds over the summer months.”
In March, former Scio board chairman Edward Adams was indicted on fraud charges by the U.S. Attorney for the District of Minnesota, including allegations of embezzlement between 2006 and 2013. Adams has not been involved with the Scio since a 2014 proxy battle prompted a leadership change, the company said.