Paragon Calls on Sham Gad to Put Up or Shut Up

Rhea-AI Summary

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.

Positive

• Audit Committee's proactive stance in demanding transparency for shareholders
• Company's effort to ensure shareholders and board nominees have access to complete information

Negative

• Existence of undisclosed litigation settlement terms from April 2025
• Ongoing corporate governance disputes with former Chairman/CEO
• Potential information being withheld from shareholders and board nominees

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EASTON, PA / ACCESS Newswire / May 30, 2025 / The Audit Committee of Paragon Technologies (OTC PINK:PGNT) calls on former Chairman and CEO, Mr. Hesham "Sham" Gad to put up or shut up. The Committee is demanding that Gad align his purported public commitment to "transparent, ethical governance" with action by immediately lifting the non-disclosure elements of the April 2025 litigation settlement agreement- terms he insisted upon.

"If Mr. Gad is truly committed to transparency and ethical governance," stated Mr. Eriksen, a Committee member, "he should not only be willing to provide shareholders and his board nominees all available information in order to make a fully informed decision, he should insist upon it."

"The question for Mr. Gad is simple and straightforward," Mr. Eriksen concluded. "Will you agree to transparency and remove the non-disclosure restrictions you insisted upon, allowing shareholders and your board nominees to exercise their rights with all the facts, or is your stated "commitment" merely rhetoric, part of your ongoing pattern designed to mislead and deceive shareholders?"

About Paragon Technologies
Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate, and investments. For additional information please visit: www.pgntgroup.com.

Investor Relations Contact:
Alliance Advisors IR
ParagonIR@allianceadvisors.com

SOURCE: Paragon Technologies Inc.

View the original press release on ACCESS Newswire

FAQ

What is the dispute between Paragon Technologies (PGNT) and former CEO Sham Gad about?

The dispute centers around non-disclosure elements in an April 2025 litigation settlement agreement that former CEO Sham Gad insisted upon, which the Audit Committee claims contradicts his public commitment to transparent governance.

When was the litigation settlement agreement between Paragon Technologies and Sham Gad signed?

The litigation settlement agreement was signed in April 2025.

Who is currently challenging Sham Gad's position at Paragon Technologies (PGNT)?

The Audit Committee of Paragon Technologies, including Committee member Mr. Eriksen, is challenging Sham Gad's position regarding transparency.

What is Paragon Technologies' Audit Committee demanding from Sham Gad?

The Audit Committee is demanding that Sham Gad remove the non-disclosure elements from the April 2025 litigation settlement agreement to allow shareholders and board nominees access to all information.

What position did Sham Gad previously hold at Paragon Technologies?

Sham Gad previously served as Chairman and CEO of Paragon Technologies.