Paragon Technologies Inc Stock Price, News & Analysis

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.

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.

Paragon Technologies' Audit Committee has issued a direct challenge to former Chairman and CEO Hesham 'Sham' Gad regarding transparency concerns. The Committee is demanding Gad to remove non-disclosure elements from an April 2025 litigation settlement agreement, which he had previously insisted upon. Committee member Mr. Eriksen questioned Gad's commitment to transparent and ethical governance, suggesting a disconnect between his public statements and actions. The confrontational statement highlights ongoing tensions between the company's Audit Committee and its former executive, particularly focusing on shareholders' right to full information access.