In light of the developments with regards to Paragon Technologies Inc. yesterday, the company could be in focus among investors today, and hence, it could be a good move to take a closer look. The diversified holding company is also the biggest shareholder of Ocean Power Technologies Inc. (OTC:PGNT).
On Monday, it emerged that the company had urged Ocean Power to immediately stop any further dilutive issuance of equity and instead collaborate with Paragon Technologies to save its shareholders from suffering a complete loss. It was also noted that desisting from such issuance would also save Ocean Power from financial collapse. The chairman of the company, Sham Gad, spoke about the situation as well.
He noted that since Ocean Power had conducted a possibly invalid annual meeting on February 28, 2024, the share price had cratered by almost 40%. Gad went on to note that the market had lost all faith in the abilities of Ocean Power Chief Executive Officer Phillip Stratmann since his strategies had not been delivering at all.
However, that was not all. Gad also pointed out that over the course of the past few weeks, Ocean Power has sent out a number of press releases with regards to a number of partnerships, but the market response to those announcements has been consistent, and the share price has dropped each time.
He repeated his assertion that the shareholders had lost all faith in the ability of the executive team and the directors at Ocean Power to deliver value for the shareholders. Paragon Technologies sent out a press release on April 12, noting that it had made a formal complaint in the Chancery Court of Delaware. In the complaint, it was alleged that Ocean Power had failed to form a quorum, and hence, the annual meeting that took place was invalid.
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