Hesham "Sham" Gad, Paragon Technologies' largest stockholder with 28.2% ownership, has issued a definitive proxy statement and letter to stockholders ahead of the 2025 Annual Meeting. Gad, who served as CEO from 2014 to August 2024, highlights his track record of delivering an 11% annualized return during his tenure. Under his leadership since 2017, SI Systems transformed from an unprofitable entity to a debt-free operation, generating $5.7 million in profit. The company expanded through strategic moves including the acquisition of SED International de Colombia, $3.3 million in real estate investments, and building a $4 million cash and U.S. Treasury portfolio. Gad is proposing a new slate of directors - David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni, and Ronell Rivera - arguing that the current board lacks effective strategy and is focused on self-preservation rather than stockholder interests.
Hesham "Sham" Gad, il maggior azionista di Paragon Technologies con una quota del 28,2%, ha pubblicato una dichiarazione definitiva di delega e una lettera agli azionisti in vista dell'Assemblea Annuale del 2025. Gad, che è stato CEO dal 2014 ad agosto 2024, sottolinea il suo record di un rendimento annualizzato dell'11% durante il suo mandato. Sotto la sua guida dal 2017, SI Systems si è trasformata da un'entità in perdita a un'azienda senza debiti, generando un profitto di 5,7 milioni di dollari. La società si è espansa attraverso mosse strategiche, tra cui l'acquisizione di SED International de Colombia, investimenti immobiliari per 3,3 milioni di dollari e la costituzione di un portafoglio di liquidità e titoli del Tesoro USA da 4 milioni di dollari. Gad propone una nuova lista di direttori - David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni e Ronell Rivera - sostenendo che l'attuale consiglio manca di una strategia efficace ed è più concentrato sull'autoconservazione che sugli interessi degli azionisti.
Hesham "Sham" Gad, el mayor accionista de Paragon Technologies con un 28,2% de participación, ha emitido una declaración definitiva de poder y una carta a los accionistas antes de la Junta Anual de 2025. Gad, que fue CEO desde 2014 hasta agosto de 2024, destaca su historial de un rendimiento anualizado del 11% durante su gestión. Bajo su liderazgo desde 2017, SI Systems se transformó de una entidad no rentable a una operación sin deudas, generando 5,7 millones de dólares en ganancias. La compañía se expandió mediante movimientos estratégicos, incluyendo la adquisición de SED International de Colombia, inversiones inmobiliarias por 3,3 millones de dólares y la creación de una cartera de efectivo y bonos del Tesoro de EE.UU. por 4 millones de dólares. Gad propone una nueva lista de directores - David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni y Ronell Rivera - argumentando que la junta actual carece de una estrategia efectiva y está más enfocada en la autopreservación que en los intereses de los accionistas.
Hesham "Sham" Gad는 Paragon Technologies의 최대 주주로 28.2%의 지분을 보유하고 있으며, 2025년 연례 주주총회를 앞두고 확정 위임장 성명서와 주주들에게 보내는 서한을 발표했습니다. 2014년부터 2024년 8월까지 CEO를 역임한 Gad는 재임 기간 동안 연평균 11%의 수익률을 달성한 실적을 강조합니다. 2017년부터 그의 리더십 아래 SI Systems는 적자 기업에서 부채 없는 운영체로 전환하여 570만 달러의 이익을 창출했습니다. 회사는 SED International de Colombia 인수, 330만 달러의 부동산 투자, 400만 달러 규모의 현금 및 미국 국채 포트폴리오 구축 등 전략적 확장을 이루었습니다. Gad는 새로운 이사진 명단으로 David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni, Ronell Rivera를 제안하며, 현 이사회가 효과적인 전략이 부족하고 주주 이익보다 자기 보존에 집중하고 있다고 주장합니다.
Hesham "Sham" Gad, principal actionnaire de Paragon Technologies avec une participation de 28,2 %, a publié une déclaration de procuration définitive et une lettre aux actionnaires avant l'Assemblée annuelle de 2025. Gad, qui a été PDG de 2014 à août 2024, met en avant son bilan avec un rendement annualisé de 11 % durant son mandat. Sous sa direction depuis 2017, SI Systems est passé d'une entité non rentable à une opération sans dettes, générant un bénéfice de 5,7 millions de dollars. L'entreprise s'est développée grâce à des mouvements stratégiques, notamment l'acquisition de SED International de Colombie, des investissements immobiliers de 3,3 millions de dollars et la constitution d'un portefeuille de trésorerie et de bons du Trésor américain de 4 millions de dollars. Gad propose une nouvelle liste d'administrateurs – David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni et Ronell Rivera – arguant que le conseil actuel manque de stratégie efficace et se concentre davantage sur l'auto-préservation que sur les intérêts des actionnaires.
Hesham "Sham" Gad, der größte Aktionär von Paragon Technologies mit einem Anteil von 28,2 %, hat eine endgültige Vollmachterklärung und einen Brief an die Aktionäre vor der Hauptversammlung 2025 veröffentlicht. Gad, der von 2014 bis August 2024 CEO war, hebt seine Bilanz mit einer annualisierten Rendite von 11 % während seiner Amtszeit hervor. Unter seiner Führung seit 2017 verwandelte sich SI Systems von einem verlustbringenden Unternehmen in einen schuldenfreien Betrieb, der 5,7 Millionen Dollar Gewinn erwirtschaftete. Das Unternehmen expandierte durch strategische Schritte, darunter die Übernahme von SED International de Colombia, Immobilieninvestitionen in Höhe von 3,3 Millionen Dollar und den Aufbau eines Portfolios aus 4 Millionen Dollar in Bargeld und US-Staatsanleihen. Gad schlägt eine neue Liste von Direktoren vor – David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni und Ronell Rivera – und argumentiert, dass der aktuelle Vorstand keine effektive Strategie verfolgt und sich mehr auf Selbsterhaltung als auf die Interessen der Aktionäre konzentriert.
Positive
Track record of 11% annualized return during Gad's CEO tenure (2014-2024)
SI Systems transformed from unprofitable to generating $5.7 million in profit under Gad's leadership
Company growth from $8 million to over $100 million in revenues without raising outside capital or taking debt
Strategic acquisition of SED International de Colombia proved highly profitable
Built $4 million cash and U.S. Treasury portfolio for future interest income
Negative
Internal leadership conflict and power struggle at the board level
Recent removal of Gad as CEO in August 2024 indicating corporate governance issues
Current board accused of lacking strategic direction and focusing on self-preservation
Potential business disruption due to ongoing proxy battle
Urges Stockholders to Vote on the BLUE Proxy Card to Elect His Slate of Director Nominees Who are Committed to Prioritizing Stockholders' Interest, Restoring Confidence and Unlocking Value
NEW YORK, NY / ACCESS Newswire / June 5, 2025 / Hesham "Sham" Gad, who beneficially owns approximately 28.2% of the outstanding shares of common stock of Paragon Technologies, Inc. ("Paragon" or the "Company") (OTC Pink:PGNT) and is Paragon's largest stockholder, announced that he has mailed his definitive proxy statement in connection with the Company's upcoming 2025 Annual Meeting of Stockholders and sent a letter to the Company's stockholders outlining why he believes significant change is needed in the boardroom for the Company to fulfill its potential.
The full text of the letter is set forth below:
Dear Fellow Paragon Stockholders:
I believe that stockholders would greatly benefit from significant changes to the composition of Board of Directors (the "Board") of Paragon Technologies, Inc. ("Paragon" or the "Company"). As the Company's largest stockholder and a loyal long-term investor and Board member, my interests are aligned with those of all Paragon stockholders. I believe there is significant value to be realized at Paragon. However, as the past few months have shown, I am deeply concerned that the majority of the incumbent Board has not demonstrated a commitment to acting in the best interests of stockholders and has failed to deploy an effective strategy at the Company. Unfortunately, the majority of the incumbent directors have spent the past year doing what failing boards so often do, rewriting history and burning through stockholder capital to entrench themselves.
Today, Paragon stands at a critical juncture-not because of external forces or market challenges, but because a group of entrenched directors are waging a deceptive and self-serving campaign to seize control of your company. They offer no strategy, no experience, and no track record-only distractions, distortion, and destruction.
This proxy contest is not about personalities-it's about performance, capital allocation, integrity, and the future of Paragon.
The Real Track Record - Built for Stockholders by Stockholders
During my 10-year tenure as CEO of Paragon from 2014 through August 2024, stockholders realized an 11% annualized return.
In 2017, when I assumed oversight of SI Systems, LLC ("SI Systems") and complete capital allocation of all of Paragon, stockholders realized approximately 30% annualized return through August 2024, when Weiser began his personal campaign against me and removed me as CEO.
During my time running SI Systems beginning in 2017, both SI Systems and Paragon have been radically transformed:
SI Systems went from unprofitable and leveraged, to a debt-free, cash-generating business that earned a total of $5.7 million in profit before tax during my leadership, as compared to a total loss of $224,000 over the prior six years.
How was this capital allocated?
The acquisition of SED International de Colombia, which has delivered enormous profits and value for stockholders.
The purchase of $3.3 million in real estate assets, cash-flow positive from day one, and worth significantly more today than when acquired, which, if elected, we will monetize for stockholders.
The creation of a $4 million cash and U.S. Treasury portfolio, that will begin earning significant interest income for Paragon.
All of the above was achieved starting with a single business generating around $8 million in revenue and losing money. From that single business, Paragon is now generating over $100 million in revenues and significant profitability for shareholders. Most importantly these results were achieved without raising outside capital or taking on debt, and with minimal stockholder dilution - a hallmark of prudent, shareholder-centric, and disciplined capital allocation. Best of all, our shareholders had been rewarded with significant shareholder returns until Weiser and his hand-picked directors took control. However, I am optimistic that the shared culture we have created over many years will withstand the distracting rhetoric, and I hope the Company's faithful, long-term shareholders will soon see their continued commitment and investment guided by the right leadership.
These returns reflect real value-not speculation, not promises to deliver in the future.
With the right plan and right people in place, I am confident that Paragon can deliver meaningful long-term value to our stockholders, who are truly our partners. I urge you to protect and enhance the value of your investment by voting for my director nominees - David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni, and Ronell Rivera. Together, we can again make Paragon exceptional.
PLEASE VOTE YOUR BLUE PROXY CARD TODAY.
I look forward to continuing to engage transparently and collaboratively with my fellow stockholders and urge you to support my slate of uniquely qualified director candidates to help usher in a new era of growth and success at the Company.
Further information and resources in connection with my campaign for change, accountability and a stockholder-first culture at Paragon are available at www.saratogaproxy.com/PGNT. Thank you for your consideration.
Sincerely,
Sham Gad
For inquiries, please reach out to the address below: hmgad78@gmail.com
Saratoga Proxy Consulting LLC John Ferguson (212) 257-1311/(888) 368-0379 info@saratogaproxy.com
What is the purpose of Sham Gad's proxy statement for Paragon Technologies (PGNT)?
Gad issued the proxy statement to propose a new slate of directors and seek stockholder votes, arguing that significant board changes are needed to unlock value and restore stockholder confidence.
What was Paragon Technologies' (PGNT) performance under Sham Gad's leadership?
Under Gad's CEO tenure (2014-2024), stockholders realized an 11% annualized return, and the company grew from $8 million to over $100 million in revenues while maintaining profitability.
Who are the director nominees proposed by Sham Gad for Paragon Technologies (PGNT)?
Gad's proposed slate of directors includes David Duquette, Hesham M. Gad, James Kaufman, Elodie Leoni, and Ronell Rivera.
What percentage of Paragon Technologies (PGNT) does Sham Gad own?
Sham Gad beneficially owns approximately 28.2% of Paragon Technologies' outstanding shares, making him the company's largest stockholder.
What major achievements occurred at SI Systems under Gad's leadership at Paragon (PGNT)?
SI Systems transformed from an unprofitable, leveraged business to a debt-free operation that earned $5.7 million in profit before tax, compared to a $224,000 loss in the previous six years.
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