Paragon News Release

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Rhea-AI Summary

Paragon Technologies (OTC PINK:PGNT) has announced that its Audit Committee has initiated an independent investigation into Hesham M. Gad's conduct, engaging legal counsel from Holland & Knight LLP. The company previously removed Gad from his positions as Chairman of the Board and CEO on August 9, 2024, followed by his termination as President of SI Systems, and all remaining positions within Paragon and its subsidiaries on November 4, 2024. While the Audit Committee is committed to a thorough investigation, the duration and outcome remain uncertain.

Positive

None.

Negative

Ongoing audit investigation into former CEO's conduct indicates potential governance issues
Multiple executive removals and terminations suggest internal instability
Legal investigation may result in additional costs and management distraction

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12/05/2024 - 10:00 AM EST

Paragon Technologies Announces Audit Committee Investigation of Hesham Gad

EASTON, PA / ACCESSWIRE / December 5, 2024 / Paragon Technologies, Inc. (OTC PINK:PGNT), a diversified holding company, announced today that the Audit Committee of the Board of Directors has engaged legal counsel from Holland & Knight LLP to conduct an independent investigation into the conduct of Hesham M. Gad. The Board of Directors previously replaced Mr. Gad as Chairman of the Board and Chief Executive Officer of Paragon on August 9, 2024, and on November 4, 2024, the Board terminated Mr. Gad as President of SI Systems, LLC and from any and all remaining positions he held with Paragon and its subsidiaries.

The Audit Committee is committed to conducting a prompt, expeditious, and thorough independent investigation, but it is unable to predict the duration or outcome of its investigation. The Company will provide further information from the Audit Committee's investigation at the appropriate time.

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 accesswire.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did Paragon Technologies (PGNT) launch an investigation into Hesham Gad?

Paragon Technologies' Audit Committee launched an independent investigation into Hesham Gad's conduct, though specific reasons were not disclosed in the announcement. The investigation follows his removal from multiple leadership positions.

When was Hesham Gad removed from his positions at Paragon Technologies (PGNT)?

Hesham Gad was removed as Chairman and CEO on August 9, 2024, and later terminated as President of SI Systems, and all remaining positions on November 4, 2024.

Who is conducting the investigation into former Paragon Technologies (PGNT) CEO?

The investigation is being conducted by Holland & Knight LLP, who were engaged as legal counsel by Paragon Technologies' Audit Committee.

Paragon News Release