Gad Offers No Plan for Future of Paragon
Paragon Technologies (OTC:PGNT) is facing a leadership challenge as its Nominating and Corporate Governance Committee criticizes former Chairman and CEO Hesham Gad's attempt to regain control of the company. The committee highlights Gad's alleged poor track record, including underperforming investments during a bull market, mismanagement of foreign subsidiaries, and neglect of core business SI Systems.
In response, the company has outlined a five-pillar strategic plan including: rebuilding SI Systems, repositioning SED International Holdings for Latin American expansion, liquidating underperforming real estate assets, reallocating capital from failed investments, and pursuing U.S.-based acquisitions. The committee urges shareholders to reject Gad's consent solicitation by not signing his white consent card and supporting the current board with a blue consent revocation card.
Paragon Technologies (OTC:PGNT) sta affrontando una sfida nella leadership poiché il suo Comitato per la Nomina e la Governance Aziendale critica il tentativo dell'ex Presidente e CEO Hesham Gad di riprendere il controllo dell'azienda. Il comitato sottolinea il presunto scarso rendimento di Gad, inclusi investimenti deludenti durante un mercato toro, una cattiva gestione delle filiali estere e la trascuratezza del core business SI Systems.
In risposta, la società ha delineato un piano strategico basato su cinque pilastri che prevede: la ricostruzione di SI Systems, il riposizionamento di SED International Holdings per l'espansione in America Latina, la liquidazione di immobili sotto-performanti, la riallocazione del capitale da investimenti fallimentari e la ricerca di acquisizioni negli Stati Uniti. Il comitato invita gli azionisti a rifiutare la richiesta di consenso di Gad non firmando la sua carta bianca di consenso e a sostenere il consiglio attuale con una carta blu di revoca del consenso.
Paragon Technologies (OTC:PGNT) enfrenta un desafío en su liderazgo, ya que su Comité de Nominaciones y Gobernanza Corporativa critica el intento del ex presidente y CEO Hesham Gad de retomar el control de la empresa. El comité destaca el presunto historial negativo de Gad, incluyendo inversiones con bajo rendimiento durante un mercado alcista, mala gestión de las subsidiarias extranjeras y negligencia en el negocio principal SI Systems.
En respuesta, la compañía ha presentado un plan estratégico basado en cinco pilares que incluye: reconstruir SI Systems, reposicionar SED International Holdings para la expansión en América Latina, liquidar activos inmobiliarios con bajo rendimiento, reasignar capital de inversiones fallidas y buscar adquisiciones en EE.UU. El comité insta a los accionistas a rechazar la solicitud de consentimiento de Gad no firmando su tarjeta blanca de consentimiento y apoyando la junta actual con una tarjeta azul de revocación de consentimiento.
Paragon Technologies (OTC:PGNT)는 전 회장 겸 CEO인 Hesham Gad가 회사 통제권을 되찾으려는 시도에 대해 지명 및 기업 거버넌스 위원회가 비판하며 리더십 도전에 직면해 있습니다. 위원회는 Gad의 불량한 실적, 강세장 기간 동안의 저조한 투자 성과, 해외 자회사 관리 부실, 핵심 사업인 SI Systems 방치 등을 지적하고 있습니다.
이에 회사는 다섯 가지 핵심 전략을 제시했으며, 여기에는 SI Systems 재건, 라틴 아메리카 확장을 위한 SED International Holdings 재배치, 부진한 부동산 자산 청산, 실패한 투자 자본 재배분, 미국 기반 인수 추진이 포함됩니다. 위원회는 주주들에게 Gad의 동의 요청에 응하지 말고 그의 백색 동의서에 서명하지 않으며, 현재 이사회를 지지하는 청색 동의 철회서에 서명할 것을 촉구하고 있습니다.
Paragon Technologies (OTC:PGNT) fait face à un défi de leadership alors que son Comité de nomination et de gouvernance d'entreprise critique la tentative de l'ancien président et PDG Hesham Gad de reprendre le contrôle de la société. Le comité souligne le bilan apparemment médiocre de Gad, notamment des investissements peu performants en période de marché haussier, une mauvaise gestion des filiales étrangères et la négligence de l'activité principale SI Systems.
En réponse, la société a présenté un plan stratégique en cinq piliers comprenant : la reconstruction de SI Systems, le repositionnement de SED International Holdings pour une expansion en Amérique latine, la liquidation des actifs immobiliers peu performants, la réaffectation des capitaux issus d'investissements infructueux et la recherche d'acquisitions basées aux États-Unis. Le comité exhorte les actionnaires à rejeter la sollicitation de consentement de Gad en ne signant pas sa carte blanche de consentement et en soutenant le conseil actuel avec une carte bleue de révocation de consentement.
Paragon Technologies (OTC:PGNT) steht vor einer Führungsherausforderung, da sein Nominierungs- und Corporate-Governance-Ausschuss den Versuch des ehemaligen Vorsitzenden und CEO Hesham Gad kritisiert, die Kontrolle über das Unternehmen zurückzugewinnen. Der Ausschuss hebt Gads angeblich schlechte Bilanz hervor, darunter unterdurchschnittliche Investitionen während eines Bullenmarktes, Missmanagement ausländischer Tochtergesellschaften und Vernachlässigung des Kerngeschäfts SI Systems.
Als Reaktion hat das Unternehmen einen Fünf-Säulen-Strategieplan vorgestellt, der Folgendes umfasst: den Wiederaufbau von SI Systems, die Neupositionierung von SED International Holdings für die Expansion in Lateinamerika, die Veräußerung von unterperformenden Immobilienvermögen, die Umverteilung von Kapital aus gescheiterten Investitionen und die Verfolgung von Akquisitionen in den USA. Der Ausschuss fordert die Aktionäre auf, Gads Zustimmungserklärung abzulehnen, indem sie seine weiße Zustimmungskarte nicht unterschreiben und den aktuellen Vorstand mit einer blauen Zustimmungsvollmachtsrücknahmekarte unterstützen.
- None.
- Company facing leadership dispute and potential proxy fight
- History of underperforming investment portfolio during bull market
- Poor performing real estate portfolio through Ohana Home Services
- Significant currency and political risk exposure in Colombian operations
- SI Systems core business has deteriorated due to underinvestment
Paragon Has a Strategic Plan to Create Shareholder Value
EASTON, PA / ACCESS Newswire / May 7, 2025 / Paragon Technologies' (OTC PINK:PGNT) Nominating and Corporate Governance Committee today issued a statement questioning the leadership and vision of Paragon's Former Chairman and CEO, Hesham Gad, in light of his track record of poor capital allocation, mismanagement, and ill-advised activist campaigns. Even in his attempt to gain control of the Company through a consent solicitation or proxy contest, Gad still has failed to provide any substantive answers regarding his plans for Paragon's future.
No Plan. No Vision. No Track Record of Success.
In a previous release, the Committee made the case based on his history of deceit and why it believes Gad was unfit to be a director at a public company. In addition to the character issues, the Committee believes Mr. Gad lacks the management and investment skills necessary to be successful at Paragon. In contrast to the Company's strategic plan, Gad has yet to offer shareholders a credible plan for Paragon's future. This lack of vision is not new-under his leadership, Paragon became a case study in operational dysfunction and missed opportunity. Gad's tenure was marked by:
A deeply underperforming investment portfolio that failed to deliver returns during a historic bull market.
A poor performing real estate portfolio, that we believe was likely purchased so Gad could take company paid trips to Las Vegas.
Mismanagement of Paragon's foreign subsidiary, SED International de Colombia S.A.S., which remains exposed to significant currency and political risk.
Neglect of SI Systems, a core business that deteriorated under his watch due to lack of investment and strategic oversight.
The Committee believes: Gad proved he could not run the business-he simply isn't qualified to do so; his actions suggest an interest in control, not value creation; a return to his leadership would mean more of the same: poor performing investments, poor judgment, personal agendas, and no discernible strategy.
The Company Has a Strategic Plan to Create Shareholder Value
The Company has created a strategic plan to create shareholder value built on the following five pillars:
Rebuild SI Systems after years of underinvestment to expand offerings and restore growthPosition SED International Holdings, Inc. to self-finance its own expansion beyond Colombia into other areas of Latin America to mitigate specific currency risk
Liquidate poor performing real estate assets held through Ohana Home Services that have consistently generated subpar returns
Exit failed investment positions and reallocate capital towards higher-return opportunities
Pursue accretive U.S.-based acquisition to reduce dependence on unpredictable foreign operations and improve margins and earnings
This is the kind of disciplined, accountable leadership shareholders deserve-and Paragon's future depends on it.
To protect your investment in Paragon, Paragon's Nominating and Corporate Governance Committee urges you to NOT execute any white consent card and to DISCARD all materials sent to you by Mr. Gad and reject his attempt to regain control of Paragon.
You can defend against Mr. Gad's efforts to regain control of the Company through the following steps:
1. Do not sign Mr. Gad's white consent card;
2. If you have signed Mr. Gad's white consent card, you have every right to change your vote and revoke your consent. You may revoke that consent by signing, dating and mailing the enclosed BLUE Consent Revocation Card in the postage-paid envelope provided; and
3. Even if you have not signed Mr. Gad's white consent card, you can show the support for your Board and your investment in the Company by signing, dating and mailing the BLUE Consent Revocation Card to the address provided in the consent revocation statement.
If you have questions or need assistance revoking your consent please contact:
Alliance Advisors LLC
150 Clove Rd, #400
Little Falls Township, NJ 07424
(844) 202- 6169
Email: Paragon@allianceadvisors.com
About Paragon Technologies
Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate, and investments. For additional information please visit: www.pgntgroup.com.
Investor Relations Contact:
Alliance Advisors IR
ParagonIR@allianceadvisors.com
SOURCE: Paragon Technologies Inc.
View the original press release on ACCESS Newswire
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