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Paragon Calls on Ocean Power to Cease Any and All Future Equity Raises That Dilute Existing Stockholders to Fund OPT's Losses and Executive Compensation
Paragon Technologies, Inc. calls on Ocean Power Technologies, Inc. to stop diluting existing stockholders to fund losses and executive compensation, committing up to $3 million in non-dilutive preferred equity to save the company. The market has lost faith in OPT's strategy, leading to a 40% share price drop. Paragon filed a complaint alleging an invalid annual meeting. OPT's stock price continues to decline, prompting Paragon's offer to invest in the company to prevent insolvency and create shareholder value.
Paragon Technologies, Inc. esorta Ocean Power Technologies, Inc. a smettere di diluire gli azionisti esistenti per finanziare perdite e compensi degli esecutivi, impegnandosi fino a 3 milioni di dollari in capitale preferenziale non dilutivo per salvare la società. Il mercato ha perso fiducia nella strategia di OPT, causando una diminuzione del prezzo delle azioni del 40%. Paragon ha presentato un reclamo, sostenendo l'invalidità dell'assemblea annuale. Il prezzo delle azioni di OPT continua a scendere, spingendo Paragon a proporre un investimento nella società per prevenire l'insolvenza e creare valore per gli azionisti.
Paragon Technologies, Inc. insta a Ocean Power Technologies, Inc. a dejar de diluir a los accionistas existentes para financiar pérdidas y compensaciones ejecutivas, comprometiéndose hasta $3 millones en capital preferente no dilutivo para salvar la empresa. El mercado ha perdido la fe en la estrategia de OPT, llevando a una caída del 40% en el precio de las acciones. Paragon presentó una queja alegando una reunión anual inválida. El precio de las acciones de OPT sigue cayendo, lo que lleva a Paragon a ofrecer invertir en la empresa para prevenir la insolvencia y crear valor para los accionistas.
Paragon Technologies, Inc.는 Ocean Power Technologies, Inc.에게 기존 주주를 희석하여 손실과 경영진 보상을 자금하기 위한 행위를 중단할 것을 촉구하고, 회사를 구하기 위해 최대 300만 달러의 비희석 우선주 자본을 제공할 것을 약속합니다. 시장은 OPT의 전략에 대한 신뢰를 잃었으며, 이로 인해 주가가 40% 하락했습니다. Paragon은 연례회의 무효를 주장하며 불만을 제기했습니다. OPT의 주가는 계속 감소하고 있어 Paragon이 회사에 투자하고, 파산을 방지하며 주주 가치를 창출하려는 제안을 하게 되었습니다.
Paragon Technologies, Inc. demande à Ocean Power Technologies, Inc. de cesser de diluer les actionnaires existants pour financer des pertes et des compensations exécutives, s'engageant jusqu'à 3 millions de dollars en capitaux propres préférentiels non dilutifs pour sauver l'entreprise. Le marché a perdu confiance dans la stratégie d'OPT, entraînant une chute de 40 % du prix de l'action. Paragon a déposé une plainte alléguant une assemblée annuelle invalide. Le prix de l'action d'OPT continue de baisser, poussant Paragon à proposer un investissement dans l'entreprise pour éviter l'insolvabilité et créer de la valeur pour les actionnaires.
Paragon Technologies, Inc. fordert Ocean Power Technologies, Inc. auf, die Verwässerung bestehender Aktionäre zur Finanzierung von Verlusten und Vorstandsvergütungen zu stoppen und verpflichtet sich bis zu 3 Millionen Dollar in nicht-dilutivem Vorzugsaktienkapital zu investieren, um das Unternehmen zu retten. Der Markt hat das Vertrauen in die Strategie von OPT verloren, was zu einem 40%igen Rückgang des Aktienkurses führte. Paragon hat eine Beschwerde eingereicht, die eine ungültige jährliche Versammlung behauptet. Der Aktienkurs von OPT fällt weiter, was Paragon dazu veranlasst, in das Unternehmen zu investieren, um Insolvenz zu verhindern und Aktionärswert zu schaffen.
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OPT's share price has nosedived by nearly 40% since the alleged invalid annual meeting on February 28, reflecting a lack of market confidence in the company's strategy and leadership.
OPT's excessive volume of trading after the annual meeting allegations on April 12 suggests potential liquidity issues or the need to raise capital, leading to continued declines in the share price.
The OPT Board's preference for dilutive equity raises over working with Paragon as a capital source may result in further value destruction for existing shareholders, while executives continue to receive substantial compensation relative to the company's performance.
Paragon Commits Up to $3 Million in Non-Dilutive Preferred Equity of OPT to Save the Company from Insolvency and Future Shareholder Losses.
EASTON, PA / ACCESSWIRE / April 22, 2024 / Paragon Technologies, Inc. ("Paragon"), a diversified holding company and the largest shareholder of Ocean Power Technologies, Inc. (NYSE American:OPTT), ("Company" or "OPT"), calls on OPT to immediately cease any future dilutive equity issuance and instead engage with Paragon to save OPT shareholders from a total loss and the company from permanent financial ruin.
"Since OPT concluded what we believe may have been an invalid annual meeting on February 28, OPT's share price has nosedived, down nearly 40%" notes Sham Gad, Chairman of Paragon. "The market has lost any faith in CEO Philip Stratmann's strategy because it simply is not working at all."
Continues Gad, "Over the past few weeks OPT has issued several press releases announcing various partnerships and the market response has been the same - a significant drop in the share price. Shareholders and other investors have lost all faith in the competency of OPT's executives and directors to deliver shareholder value."
On April 12, Paragon issued a public release announcing that they filed a complaint in the Chancery Court in Delaware alleging that OPT failed to achieve a quorum and therefore a valid annual meeting was not held. Two business days later, April 16th, over 9 million shares of OPTT traded as the stock declined 10 percent. We believe the excessive volume was due to OPT rushing to raise capital either because the Company is facing a liquidity crunch or raising cash from shareholders to fund its potential defense of Paragon's annual meeting allegations. Since that time, OPT's share price has continued to experience precipitous declines.
Today, Paragon Technologies is announcing its willingness to invest up to $3 million in non-dilutive preferred equity in OPT to save the Company from likely insolvency and put the company on a path to finally delivering value for shareholders.
"From day one Paragon has been fully committed to doing what is best for OPT shareholders and we are demonstrating that now by our willingness to put more money into the Company," states Gad. "Our investment will require our direct involvement in the oversight of OPT, but that is a given considering the value destruction that has occurred in recent years. Instead of diluting shareholders and paying a fee of 3 percent to do so, we are prepared to put real money into OPT and do so quickly."
By choosing to issue dilutive equity at punishing prices and paying an unnecessary fee to bankers instead of working with Paragon as source of capital, OPT's Board is telling shareholders that it prefers to raise money in the market that serves to destroy value for existing shareholders while the Board and CEO continue to collect extraordinary compensation relative to OPT's size and performance.
We urge the OPT Board to begin immediate discussions with Paragon. We encourage all OPT directors and officers to carefully consider their risks related to continuing with corporate actions that result in significant market declines and destruction of shareholder value rather than pursuing better alternatives being presented to them by Paragon.
