Synthetic Diamond Maker Scio Diamond Bought By Adamas One Corp

Scio Diamond's assets are being bought by a Nevada company called Adamas One Corp.

According to the deal between the firms, Adamas will pay $3.3 million to take care of the lab-grown diamond maker's secured debt over a period of 18 months.

Adamas will also give 350,000 shares to Scio to cover its unsecured debts of more than $3 million, said a US Securities and Exchange Commission filing.

Scio Diamond's owners are to receive a further 900,000 Adamas shares when the liquidation of Scio is finalized. They will be allowed to sell the shares over a period two years after completion of the agreement. Scio’s shareholders will need to approve the transaction.

No comments on the filing were made by the firms on their websites.

Scio Diamond makes synthetic diamonds using the chemical vapor deposition (CVD), and was one of the founding members of the International Grown Diamond Association.