Paragon Technologies Inc Stock Price, News & Analysis

Paragon Technologies (OTCID:PGNT) released a shareholder update following significant management changes and the election of a new board with overwhelming support. The letter reveals concerning financial impacts from previous board actions, including approximately $3.7 million spent on entrenchment schemes and $1.2-$1.4 million in estimated remaining liabilities.

The company's cash and marketable securities declined from nearly $5 million to just above $1 million. However, there are positive developments, with SEDC posting its highest monthly sales of $13 million in July 2025. Under returning CEO Sham Gad's leadership, Paragon is focusing on rebuilding, expanding distribution and automation businesses, and implementing cost-cutting measures.

Paragon Technologies (OTC PINK:PGNT) announced the certified voting results from its 2025 Annual Shareholder Meeting held on June 30, 2025. Shareholders representing 83.74% of outstanding shares participated, with 71% overwhelmingly supporting the Gad nominees slate of directors. The new board members - David Duquette, James Kaufman, Ronell Rivera, Elodie Leoni, and Hesham Gad - were elected to serve until 2026.

Shareholders also approved RSM US LLP as independent auditors, voted for an independent board chair, and notably rejected the Stockholder Rights Agreement (poison pill), which will be terminated. The new board acknowledged significant value destruction by the previous management, including millions in wasteful expenses and asset sales, while committing to immediate action to realign operations, particularly at SI Systems.

Hesham "Sham" Gad, the largest shareholder of Paragon Technologies (OTC PINK:PGNT) with a 28.2% ownership stake, has announced the successful election of all five of his nominees to Paragon's Board of Directors based on preliminary results from the Annual Meeting.

According to preliminary voting results, approximately 60% of Paragon's outstanding shares supported the election of Gad and four new independent directors to the company's board. The victory comes after what Gad described as a challenging campaign marked by entrenchment attempts and personal attacks.

The board reconstitution is positioned as a significant shift in corporate governance, with Gad indicating plans to return to a strategy focused on stockholder value creation. Further details about the go-forward strategy will be communicated once the election results are certified.

Hesham "Sham" Gad, Paragon Technologies' (OTC PINK:PGNT) largest stockholder with a 28.2% stake, has issued a statement criticizing the incumbent board's last-minute decision to spend over $500,000 on director insurance just before the 2025 Annual Meeting.

Gad argues this move follows a concerning pattern of self-serving actions by the current board, including implementing a poison pill and issuing stock grants. He emphasizes that while he supports reasonable D&O insurance, the company has operated without any D&O claims for over a decade under his leadership.

The statement urges shareholders to vote using the BLUE proxy card for new directors focused on transparency, fiscal responsibility, and long-term value creation.

Paragon Technologies (OTC PINK:PGNT) announced receiving a litigation threat from former executive Hesham "Sham" Gad against the company and its directors. In response, the board approved a 3-year tail D&O insurance policy providing $4 million in coverage at an annual net cost under $200,000.

The board, excluding Gad, justified this decision citing Gad's history of depleting company resources through litigation, which has already cost millions. They highlighted concerns about Gad's past actions, including alleged breaches of duty, unauthorized work status, and fund misappropriation. The announcement comes amid an ongoing proxy fight, with the voting deadline set for June 29, 2025.

Hesham "Sham" Gad, the largest stockholder of Paragon Technologies (OTC PINK:PGNT) with a 28.2% ownership stake, has issued a statement thanking shareholders for their support ahead of the 2025 Annual Meeting. Gad is leading a proxy contest with his slate of director nominees against the incumbent board.

While acknowledging recent proxy advisory firm recommendations, Gad criticizes their assessment for not fully considering key issues like wasteful spending and Q1 losses. He expresses concern over the incumbent board's decision to include two of his nominees on their slate despite their objections, and condemns what he describes as a "calculated smear campaign" by current board leadership.

Paragon Technologies (OTC PINK:PGNT) announced an update to its CEO succession plan. Current Interim CEO Sam Weiser will step down from his position on June 30, 2025, following the Annual Meeting of Stockholders. The company is in the midst of a proxy contest between the current board's slate and Hesham Gad's slate. If Paragon's director slate wins, a board member will serve as Interim CEO while the company conducts a search for a permanent CEO. The company aims to have a new permanent CEO in place by October 1, 2025, and has already received interest from qualified executives. Paragon emphasized its commitment to finding an exceptional leader to drive innovation and growth.

Paragon Technologies (OTC:PGNT) released a comprehensive presentation ahead of its June 30, 2025 Annual Meeting, outlining its strategic plan and addressing governance concerns. The company's current board has implemented a four-pillar strategy focusing on rebuilding SI Systems, positioning SED International Holdings for expansion, liquidating underperforming assets, and pursuing U.S.-based acquisitions. The presentation highlights the contrast between the company's current direction and former CEO Hesham Gad's proposed alternatives. Since December 2024, Paragon has appointed three independent directors and enhanced corporate governance. The board recommends shareholders vote FOR their proposed slate, which includes independent directors Tim Eriksen, Howard Brownstein, David Lontini, and two of Gad's nominees, Elodie Leoni and Ronell Rivera, despite their objection to being included on the company's slate.

Paragon Technologies' subsidiary SI Systems has unveiled its next-generation Mobile-Matic™ picking robot, featuring lithium-ion power and Wi-Fi connectivity. The advanced warehouse automation solution processes up to 2,000 orders per hour with 99.9% accuracy, eliminating manual picking labor requirements. Key enhancements include cordless operation for an entire shift, remote operational access, wireless order processing, and real-time performance feedback. The company will begin taking orders in Q3 2025 for early 2026 delivery, offering a special retrofit program for current-generation system buyers. This marks SI Systems' first major product launch in 6 years, representing a significant step in warehouse automation technology.