BUFFALO, N.Y., Feb. 14, 2024 /PRNewswire/ -- ParagonX Holdings, Inc. (OTC: CAVR) – Caprino Management, LLC provided the following update to shareholders on its transformation of the company:
- Caprino Management, LLC continues to manage the company's transformation and is evaluating three major acquisition opportunities.
- The company announced that its subsidiary HRS has secured $18 Million in new contracts contingent upon closing on additional capital.
- The company is negotiating with multiple interested lenders to provide this capital.
- The company announced that AVRover and HRS have now reached profitability.
- The company reduced its debt by over $5 million since August 2023.
- The company reduced its total outstanding share obligations by 21% (605 million shares).
- 475 million common share obligations eliminated.
- 4.75 million Preferred B Shares returned to treasury.
- Each preferred B Share is convertible into 100 common shares.
- 200 million common shares were rescinded in July 2023.
- EROP, Inc. redeemed 70 million common shares.
- Neither the current board members nor Caprino Management, including Joe Caprino, have received any salary nor made any profit from their investments in the company in the last two years.
- The Board of Directors extensively discussed selling its RenuYou subsidiary to SOAAK Technologies in 2023. The Board unanimously approved the sale, given the written demands for compensation by its Chief Financial Officer and other creditors. The cash proceeds of $500,000 received from the sale were distributed as follows:
- $185,000 to the company's subsidiary Trudant, run by the company's former Chief Financial Officer.
- $242,000 to the company's subsidiary Sinacori Builders, LLC.
- $73,000 to pay creditors.
- The company is preparing for a Shareholder vote to elect additional directors and to replace Bob Cornaglia who resigned this week.
- The company will call for a Shareholder vote, if required, to effectuate the acquisitions currently being evaluated by Caprino Management.
"We've gone from a loss to profitability in our HRS and AV Rover subsidiaries, landed $18 Million of revenue opportunity for our HRS subsidiary, reduced common share obligations by 21%, reduced company debt by $5 million, negotiated with several creditors, and settled litigation. These substantial accomplishments will provide the foundation for us to make effective and accretive acquisitions. We believe the current share price does not reflect such progress and we remain bullish on the company's enterprise value once the next phase of our transition and turnaround plan is complete." Joe Caprino, President of Caprino Management and Acting CEO of ParagonX Holdings, Inc.
PARAGONX HOLDINGS:
ParagonX is a holding company with a portfolio of companies in construction and logistics as outlined in its respective OTC filings. The Company is a Nevada corporation and was founded in the late nineties. The Company website is www.ltbh.com.
FORWARD-LOOKING STATEMENTS:
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties, and other essential factors that may cause actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason except as required by law.
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SOURCE ParagonX Holdings, Inc.
