Mr. Gad Announces the Election of All Five of His Nominees to Paragon's Board of Directors Based on Preliminary Results of the Annual Meeting

Rhea-AI Summary

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.

Positive

• None.

Negative

• Previous management resistance and reported wasteful spending during proxy fight
• Delayed implementation of new strategy pending election certification

News Market Reaction

-20.76%

1 alert

-20.76% News Effect

On the day this news was published, PGNT declined 20.76%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Believes the Reconstitution of the Board Will Position Paragon to Return to our Strategy of Prioritizing Stockholders and Long Term Value Creation

Thanks Fellow Stockholders for Their Overwhelming Support

NEW YORK, NY / ACCESS Newswire / June 30, 2025 / Hesham "Sham" Gad, the largest stockholder of Paragon Technologies, Inc. (OTC PINK:PGNT) ("Paragon" or the "Company"), owning approximately 28.2% of the Company's outstanding shares, today issued the following statement to the Company's stockholders:

"After spending the past several months fighting entrenchment maneuvers and navigating a campaign of defamatory personal attacks and needless spending, we are very pleased that Paragon's stockholders finally had their voices heard at today's Annual Meeting. Preliminary results indicate that holders of approximately 60% of Paragon's outstanding shares voted to elect myself and four new highly-qualified and independent individuals to the Company's Board. We are enthusiastic and ready to move Paragon forward. We also want to take this opportunity to thank our fellow stockholders for their overwhelming support during what was a challenging and lengthy campaign for sorely-needed boardroom change. Today should mark the beginning of a promising new chapter for Paragon. We look forward to communicating further about our go-forward strategy once the election results have been certified."

Contacts

hmgad78@gmail.com

Saratoga Proxy Consulting
John Ferguson
jferguson@saratogaproxy.com

SOURCE: Sham Gad

View the original press release on ACCESS Newswire

FAQ

What changes were announced to Paragon Technologies (PGNT) board of directors?

Hesham 'Sham' Gad and four new independent nominees were elected to Paragon's board, with approximately 60% of shareholders voting in favor of the change.

How many shares of Paragon Technologies (PGNT) does Hesham Gad own?

Hesham Gad owns approximately 28.2% of Paragon's outstanding shares, making him the company's largest stockholder.

What was the outcome of Paragon Technologies' (PGNT) 2025 Annual Meeting?

Preliminary results indicate that 60% of shareholders voted to elect all five of Gad's nominees to the company's Board of Directors.

What are the next steps following the Paragon Technologies (PGNT) board changes?

The company will wait for the election results to be certified before communicating their new go-forward strategy focused on stockholder value creation.

What challenges did Paragon Technologies' (PGNT) board election face?

The campaign faced entrenchment maneuvers, defamatory personal attacks, and needless spending according to Gad's statement.