Paragon Technologies Inc Stock Price, News & Analysis

Paragon Technologies (OTC:PGNT) has self-reported potential federal law violations to U.S. government authorities regarding former Chairman and CEO Hesham Gad's immigration and work authorization status. The company disclosed that it may have violated federal statutes by knowingly employing Gad as CEO of both Paragon and SI Systems when he lacked valid work authorization in the United States. The company has submitted detailed information about the circumstances to relevant federal agencies and committed to maintaining transparency with shareholders regarding any feedback, required disclosures, or potential penalties resulting from this matter.

Paragon Technologies (OTC:PGNT) is facing a leadership challenge as its Nominating and Corporate Governance Committee criticizes former Chairman and CEO Hesham Gad's attempt to regain control of the company. The committee highlights Gad's alleged poor track record, including underperforming investments during a bull market, mismanagement of foreign subsidiaries, and neglect of core business SI Systems.

In response, the company has outlined a five-pillar strategic plan including: rebuilding SI Systems, repositioning SED International Holdings for Latin American expansion, liquidating underperforming real estate assets, reallocating capital from failed investments, and pursuing U.S.-based acquisitions. The committee urges shareholders to reject Gad's consent solicitation by not signing his white consent card and supporting the current board with a blue consent revocation card.

Paragon Technologies (OTC PINK:PGNT) is facing a consent solicitation from former CEO and Chairman Hesham M. Gad, who seeks to remove four current board directors and replace them with his handpicked nominees. The Nominating and Corporate Governance Committee strongly opposes this action, citing Gad's alleged misconduct including working illegally in the US without a valid visa and potential violations of fiduciary duties.

The company urges stockholders to reject Gad's white consent card and instead submit the blue consent revocation card. The current board is implementing a strategic plan focusing on: rebuilding SI Systems infrastructure, expanding SED International Holdings beyond Colombia, liquidating underperforming Ohana Home Services condominiums and investment portfolio, and identifying accretive acquisition targets to reduce dependence on SED International de Colombia.

Paragon Technologies (OTC:PGNT) has issued a letter urging stockholders to reject a consent solicitation by former CEO Hesham M. Gad. On April 29, 2025, Gad initiated an attempt to regain control of the company by seeking to remove all current directors except himself and replace them with his handpicked nominees.

The company's Nominating Committee strongly opposes Gad's solicitation, citing his alleged illegal residence in the US without a valid visa during his tenure as CEO, which potentially exposed the company to legal and financial risks. The committee has outlined a strategic plan focusing on: rebuilding SI Systems, expanding SED International Holdings beyond Colombia, liquidating underperforming Ohana Home Services condominiums and investment portfolio, and identifying accretive acquisition targets.