Mr. Gad Thanks Paragon Stockholders for Their Support of His Slate at the Upcoming Annual Meeting
Rhea-AI Summary
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.
Positive
- Gad owns a significant 28.2% stake in the company, aligning his interests with shareholders
- Gad's slate claims to have leadership ready with experience and proven track record to act immediately
- Strong shareholder support indicated for the Gad slate ahead of the annual meeting
Negative
- Company reported significant losses in Q1 2025 with additional losses likely in Q2
- Ongoing costly board entrenchment and legal maneuvers depleting company resources
- Internal conflict between current board and management affecting corporate governance
News Market Reaction – PGNT
On the day this news was published, PGNT declined 4.62%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Urges Stockholders to Continue Voting the BLUE Proxy Card for the Gad Nominees Who Will Bring the Experience, Proven Track Record, and Deep Knowledge of Paragon's Businesses to Move the Company Forward on Day One.
NEW YORK, NY / ACCESS Newswire / June 25, 2025 / Hesham "Sham" Gad, the largest stockholder of Paragon Technologies, Inc. (OTC PINK:PGNT) ("Paragon" or the "Company"), owning approximately
Dear Fellow Stockholders:
Our nominees would like to extend our sincere gratitude to Paragon Technologies stockholders for their support ahead of the upcoming 2025 Annual Meeting. This strong show of confidence thus far affirms the need for change and a forward-thinking vision for Paragon's future.
Your support is not just a vote for new leadership-it serves as a clear rejection of the incumbent board's campaign of costly entrenchment, wasteful legal maneuvers, and misleading personal attacks. We thank you for seeing through the noise and focusing on what matters most-performance, accountability, and the unmatched experience and integrity our nominees bring to the table.
"We sincerely appreciate the confidence and trust stockholders have placed in us," said Sham Gad speaking on behalf of the Gad slate. "Paragon is a unique organization with a one-of-a-kind culture, and if elected, our focus will be on executing our strategy that has delivered value and benefitted stockholders, customers, and associates."
Our slate will be ready on day one to move Paragon forward. We have leadership in place with the experience, proven track record, and intimate understanding of our businesses that will enable them to act efficiently to eliminate any further distractions and costs that Paragon absolutely does not need after the past nine months. Now, more than ever, Paragon needs directors who are committed to righting the ship and steering the Company toward a brighter, more prosperous future.
While we acknowledge the recent recommendations issued by the proxy advisory firms regarding the upcoming shareholder vote and recognize the role these advisory firms play in the election process, we believe their assessments fail to fully account for the fundamental issues facing the Company and the clear need for change. In our view, the proxy advisors overlooked several critical facts-including the Company's significant wasteful spending and the substantial losses reported in the first quarter, with additional losses likely in the second quarter under the incumbent Board's oversight. Further, we believe that many of the metrics these firms utilize in their assessment are not appropriate to evaluate a company like Paragon. Specifically, we do not measure performance over a period of months and never will and this is why so many Paragon shareholders have been partners with us for many years. The significant long-term shareholder value creation under my leadership speaks for itself.
Surprisingly, the decision by Chair of the Nominating Committee Tim Eriksen and the other directors to include two of our nominees on the Company's slate -despite their express objections-appears to have played a key role in garnering a favorable opinion from the proxy advisor firms. We believe playing to the advisor firms could have been a motivating factor in the Company's decision to include our director nominees on their slate despite both of our director nominees explicitly advising Mr. Eriksen they did not want to serve as Company nominees or be named in the Company's materials.
Unfortunately, the advisory firms don't appear to appreciate how the Company's decision deeply disturbed a key executive at one of the Company's critical subsidiaries, who felt that his clear wishes were disregarded and his trust violated. This incident underscores the disconnect between the current Board's actions and responsible corporate leadership.
Ultimately, we remain confident that our proposed slate offers the right vision, experience and motivated leadership to move Paragon forward immediately. We believe many of our stockholders agree.
We encourage our fellow stockholders to continue voting on the BLUE proxy card to send a clear message: you demand leadership that prioritizes results over rhetoric and responsible stewardship over wasteful spending. If you have not already, I urge you to review our detailed stockholder presentation at https://saratogaproxy.com/pgnt/. See for yourself the facts and the vision that sets our slate apart.
The time for distractions and waste is over. While we are disappointed that Mr. Eriksen continues to proliferate baseless and defamatory claims against me, we are certainly not surprised at his calculated smear campaign to gain control of Paragon. Despite this pattern of unprofessional behavior exhibited by certain directors of the incumbent board, we trust that the current directors will respect the clear wishes of the Company's owners and adhere to the principles of sound corporate governance. In the last few days ahead of the 2025 Annual Meeting, we hope that there will be an end to wasteful spending, as Paragon has suffered enough, and instead a focus on professionalism and decorum. The Company's future will be determined at 2025 Annual Meeting by its rightful owners: the stockholders.
Thank you for your consideration.
Sincerely,
Sham Gad
CONTACT:
hmgad78@gmail.com
SOURCE: Sham Gad
View the original press release on ACCESS Newswire
FAQ
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