Paragon Technologies Inc Stock Price, News & Analysis

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.

Paragon Technologies (OTCPK:PGNT) has issued a strong rebuttal to former Chairman and CEO Hesham "Sham" Gad's recent statements. The company alleges that Gad worked illegally in the US for over 20 years while failing to disclose this information, exposing Paragon to legal and reputational risks. The board criticizes Gad for prolonging litigation after bylaws were repealed, potentially costing shareholders millions. The company refutes Gad's accusations of concealment and states that shareholders can request access to the complaint against former corporate counsel. The board emphasizes that legal filings demonstrate Gad's pattern of deceit and mismanagement, urging shareholders to rely on factual information rather than his distortions.

Hesham "Sham" Gad, Paragon Technologies' (PGNT) largest stockholder with 28.4% ownership, has issued a critical statement regarding the company's Board of Directors' alleged pattern of concealment and transparency issues. The controversy centers around several key points:

The Board, including Timothy Eriksen, Howard Brownstein, and David Lontini, is accused of withholding material information about new litigation against former legal counsel, which follows $1.1 million in legal fees during Q1 2025. The company expects to spend $3 million on entrenchment litigation in the first half of 2025. Gad criticizes the Board's decision to keep the litigation complaint sealed from stockholders ahead of the 2025 Annual Meeting.

Additionally, Gad refutes accusations about unauthorized worker hiring and defends the company's HR practices. He calls for immediate public release of the complaint and transparency, arguing that the current directors' actions have significantly damaged the company's performance and culture.

Paragon Technologies (OTC:PGNT) has issued a response to former CEO Hesham "Sham" Gad's claims regarding the company's Q1 2025 results. The company reports that its Q1 net loss was primarily due to legal and compliance costs stemming from Gad's actions. Operating expenses increased from $1.9 million to $3.2 million due to Gad-related legal costs. The company alleges that Gad initiated costly litigation, misappropriated corporate resources, mismanaged operations, and made poor investment decisions. Specifically, the litigation has cost shareholders $3 million in additional legal expenses. The board criticizes Gad's management of SI Systems and questions his motives regarding a Las Vegas real estate portfolio acquisition. The company is now pursuing recovery of legal costs from prior counsel and emphasizes its commitment to accountability and long-term value creation.

Hesham "Sham" Gad, Paragon Technologies' (PGNT) largest stockholder with 28.4% ownership, criticizes the company's Q1 2025 financial performance under the current board. The company reported a net loss of $790,000, marking its largest quarterly loss since 2017. Operating expenses surged 67% year-over-year to $3.2 million and 39% quarter-over-quarter. The company expects to incur over $3 million in legal costs within 6 months. Gad alleges that Samuel Weiser and his appointed directors (Howard Brownstein, Timothy Eriksen, and David Lontini) are responsible for value destruction through costly litigation and unnecessary entrenchment actions, including a poison pill. The company also increased shares outstanding by 25,000 via director compensation despite poor performance.