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Paragon Technologies Calls on Ocean Power Technologies to Remove Entrenchment Devices in Advance of 2023 Annual Meeting
Paragon Technologies Calls on Ocean Power Technologies to Remove Entrenchment Devices in Advance of 2023 Annual Meeting.
About this update from Paragon Technologies, Inc.
[{"type":"text","content":"EASTON, PA / ACCESSWIRE / August 25, 2023 / Paragon Technologies, Inc. ("Paragon") (OTC:PGNT), a diversified holding company which owns approximately 4.0% of the outstanding shares of Ocean Power Technologies, Inc. ("Company") ("OPT") (NYSE American: OPTT), calls on OPT to remove the Company's entrenchment devices prior to the Company's 2023 Annual Meeting.Immediately after Paragon indicated its interest in joining the Company's board due to concerns Paragon expressed about OPT's deteriorating financial performance to the Company's CEO and Board, OPT quickly amended its bylaws to make its director nomination provisions more burdensome and include provisions that OPT has not applied to its own hand-picked board nominees.Second, after more than 30 years of significant and consistent losses, OPT decided that now was the time to adopt an anti-shareholder poison pill, only after Paragon began this campaign.On July 20, 2023, Paragon requested a limited waiver under the poison pill to acquire up to 19.9% of OPT, further signaling Paragon's commitment to be 100% aligned with all OPT's shareholders. Since OPT currently does not have any shareholders that hold more than 4.9% of its outstanding shares of common stock, granting this waiver in no way would jeopardize any of OPT's net operating losses. OPT has failed to give us a decision, leading us to conclude they are stalling with no intention of granting such a waiver.OPT has denied Paragon's request for books and records relating to OPT's years of significant financial losses and what we believe is excessive board compensation. After Paragon was forced to file litigation to enforce its rights to books and records, OPT sought to have Paragon's counsel disqualified, instead of focusing on the merits of the case. The motion to disqualify Paragon's counsel was denied by the Court.Paragon calls on OPT to demonstrate its adherence to good corporate governance practices and its stated commitment to enhance value for all OPT shareholders by taking immediate steps to:Reinstate the Company's bylaws to their original form prior to Paragon's calling out the Company's worsening financial performance.Terminate the Company's poison pill and grant Paragon its limited waiver.Allow Paragon, as is Paragon's right as a shareholder, to examine the Company's books and records.Re...