Ocean Power Technologies Board Postpones Annual Meeting for a Second Time After Failing Yet Again to Obtain Enough Shareholder Votes - Paragon Asks Shareholders to Make Your Voice Heard by Disregarding OPT's White Proxy Card
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Insights
The situation at Ocean Power Technologies (OPT) highlights significant governance issues that are negatively impacting shareholder value. The repeated inability to hold an annual meeting due to a lack of quorum suggests a deep-seated dissatisfaction among investors. This is indicative of a broader problem of shareholder engagement and confidence. The dramatic decline in OPT's stock price, nearly 90% since the current CEO's tenure began, is alarming and raises questions about the strategic direction and operational effectiveness of the company's leadership.
From a financial perspective, the accusations of self-serving board actions and misallocation of company resources could point to potential mismanagement. If these resources were indeed used for entrenchment rather than creating shareholder value, it would be a serious concern for investors. The financial implications of such governance issues can be profound, potentially leading to further erosion of investor confidence, stock price decline and increased volatility. Investors and analysts will be watching closely for developments in this situation, as it may set precedents for shareholder activism and governance standards within the industry.
Paragon Technologies' allegation that OPT may be in violation of SEC rules by adjourning its annual meeting requires careful legal scrutiny. The SEC has specific regulations governing shareholder meetings and failure to comply can have serious legal repercussions. If Paragon's investigation uncovers any violations, OPT could face regulatory actions, including fines or enforcement actions. Moreover, the suggestion that the board has been making misleading statements could lead to legal challenges, including potential shareholder lawsuits.
It is crucial for shareholders and potential investors to understand the legal framework within which these events are unfolding. Any legal action taken against OPT or its board could further impact the company's financial position and reputation, potentially leading to additional declines in shareholder value. Transparency and adherence to governance norms are key factors in maintaining investor trust and avoiding legal pitfalls.
The current situation at OPT is symptomatic of a broader trend in the market where investors are increasingly holding corporate boards accountable for their actions and performance. Shareholder activism is on the rise, with investors pushing for changes in company strategies, governance and leadership when performance is subpar. The call to action by Paragon for shareholders to reject the white proxy card is a form of activism aimed at catalyzing change within OPT.
Analyzing market trends, it is evident that companies facing similar challenges often see a period of increased volatility in their stock prices as investors react to both the internal strife and the potential for significant changes in governance and strategy. The outcome of such situations can lead to a realignment of the company's direction, which could either restore investor confidence or, if poorly managed, lead to further declines in value.
EASTON, PA / ACCESSWIRE / February 8, 2024 / Paragon Technologies, Inc. ("Paragon"), a diversified holding company, owning approximately
Yesterday, OPT again postponed its annual meeting due to OPT's inability to obtain a quorum. Embarrassed and desperate, the Board now has delayed the annual meeting for three weeks until February 28, 2024. Paragon is investigating whether OPT's adjournment is in violation of SEC rules.
Paragon Chairman and CEO Sham Gad states, "OPT's continued failure to obtain a quorum for its "2023" annual meeting confirms the glaring disapproval from shareholders related to OPT's atrocious financial results and self-serving board actions and reflects how out of touch OPT's Board is from its shareholders - the rightful owners of the business."
Mr. Gad continues "OPT shareholders are simply sick and tired of seeing shareholder value decline every single day, nearly
"For years, individual shareholders have been ignored by this Board as they continued to reward themselves with bonuses, free shares of stock, and salary increases while shareholders watched the value of their investment in OPT evaporate," states Gad.
To demonstrate the arrogance of this Board and their disregard for their shareholders, OPT tells shareholders "as time is short, shareholders are urged to protect their investment…by voting for all of OPT's directors."
So far, OPT's directors have protected your investment by allowing it to decline by nearly
Paragon urges OPT shareholders to continue showing the OPT directors and executives that you are sick and tired of their self-serving ways and ignore any and all messages from OPT asking you to vote the white proxy card. Do not let this Board get away with another year of destroying shareholder value.
We believe that the OPT Board has expended millions of dollars of the Company's resources entrenching themselves and making misleading statements about Paragon to desperately achieve a quorum.
And over the next three weeks, we believe OPT will continue to expend a significant amount of the Company's resources in a desperate attempt to further entrench themselves by telling shareholders misleading statements about the validity of Paragon's campaign.
We urge shareholders to DISREGARD THE WHITE PROXY from OPT and send a strong message that OPT's disastrous financial and share price performance under this current board and CEO can no longer be accepted.
The definition of insanity is doing the same thing over and over and expecting a different result.
Any vote for this current Board, given their track record of destroying shareholder value, is the classic definition of insanity.
If you have voted in ANY WAY on the white proxy, you should revote the BLUE proxy to save your investment from a likely complete total loss.
If you have NOT YET VOTED, we urge to ignore any and all calls or emails from OPT and completely disregard the white proxy.
Please email us at ir@pgntgroup.com with any questions about how to vote your BLUE proxy card.
We appreciate the support from shareholders thus far. If shareholders have any questions, please contact our Proxy Solicitor, Alliance Advisors at:
Alliance Advisors
200 Broadacres Drive, 3rd Floor
Bloomfield, NJ 07003
Toll-Free Phone: 855-200-8651
Email: OPTT@allianceadvisors.com
No matter how many shares you hold, we would like to hear from you. Please email us at ir@pgntgroup.com if you need any help in voting your BLUE proxy.
By voting on Paragon's BLUE universal proxy card, you can send a message to OPTthat you do not support their actions in relation to the Annual Meeting and attempting to block the recognition of Paragon's nominees.
OPT has said that it will disregard proxy votes in favor of Paragon's director nominees. Whether OPT may lawfully disregard Paragon's director nominees is an issue that Paragon expects will be resolved by the Delaware courts.
Stockholders should review the section of Paragon's proxy statement titled "Questions And Answers Relating To This Proxy Solicitation--Why is OPT saying it will disregard Paragon's director nominations, and how does that impact proxies that stockholders provide to Paragon?"
Paragon Technologies, Inc., together with the other participants named herein, has filed with the Securities and Exchange Commission (the "SEC") a definitive proxy statement and an accompanying proxy card soliciting votes for the election of director nominees at the 2023 annual meeting of shareholders of Ocean Power Technologies, Inc., a Delaware corporation (the "company").
Paragon Technologies, Inc. is the beneficial owner of 2,639,853 shares of common stock of the company, par value
Paragon Technologies, Inc., and Paragon's director nominees Hesham M. Gad, Shawn M. Harpen, Jack H. Jacobs, and Samuel S. Weiser, are the participants in the proxy solicitation. Mr. Gad, Executive Chairman of Paragon's Board of Directors and Chief Executive Officer of Paragon, and Messrs. Jacobs and Weiser, directors of Paragon, may be deemed to beneficially own the shares of the company's common stock held by Paragon. Ms. Harpen does not own beneficially or of record any securities of the company. Updated information regarding the participants and their direct and indirect interests in the solicitation, by security holdings or otherwise, has been and will be included in Paragon's proxy statement and other materials filed with the SEC.
SHAREHOLDERS OF THE COMPANY SHOULD READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS CAREFULLY AND IN THEIR ENTIRETY AS THEY CONTAIN IMPORTANT INFORMATION RELATING TO THE COMPANY'S ANNUAL MEETING, PARAGON'S SOLICITATION OF PROXIES AND PARAGON'S NOMINEES TO THE BOARD. SUCH PROXY MATERIALS ARE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT WWW.SEC.GOV OR FROM PARAGON TECHNOLOGIES, INC. REQUESTS FOR COPIES SHOULD BE DIRECTED TO PARAGON'S PROXY SOLICITOR.
SOURCE: Paragon Technologies Inc.
View the original press release on accesswire.com
FAQ
What is the reason for Paragon Technologies, Inc.'s statement to Ocean Power Technologies, Inc. shareholders?
Who is the Chairman and CEO of Paragon Technologies, Inc.?
What is the decline in shareholder value mentioned in the statement?
What action does Paragon urge OPT shareholders to take?
