Paragon Technologies (PGNT) Stock News

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.

Paragon Technologies (OTC PINK:PGNT) faces controversy as board nominees Ronell Rivera and Elodie Leoni publicly denounce their unauthorized inclusion in the company's management slate. Both individuals had explicitly declined nominations through the Board's Nominating Committee, yet their names appeared in formal proxy materials released this week. Rivera and Leoni issued statements confirming their commitment to the Gad shareholder-aligned slate while expressing concerns about the unauthorized use of their names. The unauthorized nominations potentially violate Delaware law and raise serious questions about corporate governance practices and transparency in Paragon's board nomination process.

Paragon Technologies (OTC:PGNT) has mailed its definitive proxy statement for the upcoming annual meeting on June 30, 2025. The company's Nominating Committee is urging shareholders to vote "FOR" their proposed slate of directors on the WHITE proxy card, opposing former CEO Hesham Gad's proxy contest. The committee's proposed board includes five members: three independent directors (David Lontini, Howard Brownstein, and Tim Eriksen) added in December 2024, and two of Gad's nominees (Ronell Rivera and Elodie Leoni), representing 40% of the board.

The committee strongly criticizes Gad's leadership, citing alleged illegal residency, misclassification as a contractor, wasteful activism campaigns, and value-destroying litigation. They argue that despite owning only 28% of shares, Gad seeks 100% board control through his competing slate.

Hesham "Sham" Gad's nominated directors for Paragon Technologies (PGNT) have issued a statement to stockholders ahead of the company's 2025 Annual Meeting. The slate of nominees, consisting of David Duquette, James Kaufman, Elodie Leoni, and Ronell Rivera, emphasizes their commitment to enhancing corporate governance, transparency, and long-term value creation. The nominees express support for Gad's leadership, citing meaningful progress under his direction. They position their candidacy as an opportunity for stockholders to influence Paragon's future direction through a refreshed Board focused on operational discipline, innovation, and shareholder alignment.