Weiser Announces Departure from Paragon Board at Upcoming Annual Meeting
Rhea-AI Summary
Paragon Technologies announced that Interim CEO and Director Samuel S. Weiser will not seek re-election at the upcoming Annual Meeting of Shareholders. Weiser, who has served since 2012, cited the need for new independent directors to lead the company forward following a tumultuous period.
The announcement reveals serious allegations against former leader Mr. Gad, including claims of undisclosed misappropriation of corporate funds and concerns about work authorization status. Weiser and Col. Jacobs had removed Gad in August 2024.
The company outlined a strategic plan focusing on:
- Rebuilding SI Systems infrastructure
- Expanding SED beyond Colombia
- Liquidating underperforming Ohana Home Services condominiums
- Selling off poor-performing investment portfolio
- Seeking accretive acquisitions to reduce dependence on SEDC
Chairman David Lontini praised Weiser's contributions in identifying issues and managing litigation challenges.
Positive
- New strategic plan focuses on rebuilding SI Systems infrastructure for growth and product expansion
- Plans to enable SED's self-financed expansion beyond Colombia into other Latin American markets
- Strategy to liquidate underperforming assets including Ohana Home Services condominiums and investment portfolio
- Focus on identifying accretive acquisitions to boost domestic revenue and reduce dependence on SEDC
Negative
- SI Systems infrastructure reported as critically damaged under previous leadership
- SEDC operations face low margins and currency risk, making earnings unpredictable
- Investment portfolio failed to generate positive returns during strong market conditions
- Ohana Home Services condominiums delivering single-digit returns at best
- Company heavily dependent on SEDC's performance which is subject to currency risk and economic volatility
News Market Reaction
On the day this news was published, PGNT gained 9.22%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
EASTON, PA / ACCESS Newswire / April 29, 2025 / Paragon Technologies, Inc. (OTC Pink:PGNT), a diversified holding company, today announced that Samuel S. Weiser, the current Interim CEO and Director since 2012, has notified the Nominating and Governance Committee of Paragon's Board of Directors that he will not stand for re-election at the upcoming Annual Meeting of Shareholders.
Mr. Weiser stated that "It is time for the new independent directors to take the lead and move Paragon forward as a holding company. The company is coming out of a very tumultuous period. It is important for shareholders to support the current board's slate of nominees who represent a group of individuals committed to oversight, governance and improving shareholder value. The alternative slate of independent directors proposed by Mr. Gad likely represents a return to self-dealing and corporate underperformance. Mr. Gad is focused on his own self-interests at the expense of all shareholders, and he has nominated a slate of supposed independent directors chosen, I believe, because they will aid and abet his self-interested agenda."
Mr. Weiser went on to say, "When Col. Jacobs, a recipient of the Medal of Honor, and I took the action of removing Mr. Gad in August of 2024, we wanted to provide shareholders with a pathway forward, new independent directors, and the ability to have a referendum on Mr. Gad's leadership at the next annual meeting. That agenda is now complete."
Highlighting findings during their review process, Mr. Weiser noted, "Our examination into Mr. Gad's tenure as CEO of the company and SI Systems revealed deeply concerning issues, including, among others, undisclosed matters regarding his work authorization and citizenship status. We also learned of a pattern of undisclosed misappropriation of corporate funds and other self-serving activities that the Board's Nominating and Governance Committee will make known to shareholders."
Mr. Weiser continued, "Consistent with the agenda Col. Jacobs and I laid out last fall, over the past nine months we have created a strategic plan that is built on the following concepts:
Rebuilding SI Systems infrastructure critically damaged under Mr. Gad's leadership to grow that business and expand product offerings;
Position SED to self-finance its own expansion beyond Colombia into other areas of Latin America to mitigate specific currency risk;
Liquidate the condominium holdings of Ohana Home Services which have underperformed and provide single digit, at best, returns to shareholders;
Liquidate Paragon's underperforming investment portfolio which has failed to produce positive returns during one of the best market environments in history; and
Identify accretive acquisitions of businesses that can bolster Paragon's domestic revenue and earnings to reduce dependence on SEDC whose low margins and currency risk make Paragon's earnings unpredictable and susceptible to exogenous economic events.
Mr. Weiser concluded, "The new independent directors, and I, firmly believe this strategic plan will end the era of costly and unproductive attempts to control failing or distressed companies under Mr. Gad's leadership."
David Lontini, Paragon's Chairman noted, "The steps Mr. Weiser and Col. Jacobs took in August of last year have placed Paragon in a strong position for growth and enhanced shareholder value. We are grateful for the work Mr. Weiser has contributed to identifying and rectifying issues impacting SI Systems' results and managing the myriad of issues facing the company due to Mr. Gad's self-serving litigation against the directors. More importantly, and acting in the best interest of shareholders, Mr. Weiser's dedication helped uncover what we believe to be, the dishonest, deceitful and self-interested conduct of Mr. Gad during his tenure."
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
Why is Samuel Weiser leaving Paragon (PGNT) board in 2025?
What allegations did Paragon (PGNT) make against former CEO Hesham Gad?
What is Paragon's (PGNT) new strategic plan for 2025?
How will Paragon (PGNT) address its Latin American currency risk?
What changes did Paragon (PGNT) implement after removing CEO Gad in August 2024?
