Gad Capital, an investment fund and beneficial owner of 6.5 per cent of the common stock of Paragon Technologies, has launched a proxy contest to elect a new board of directors at Paragon’s 15 December 2010 annual meeting.
Gad Capital has nominated the following candidates:
• Sham Gad (pictured): the founder and managing partner of Gad Capital Management and the author of the internationally published book, "The Business of Value Investing."
• Jack H. Jacobs: a principal of The Fitzroy Group, a real estate development firm, and former managing director of Bankers Trust and founder of AutoFinance Group. He is on the board of Xedar, Premier Exhibitions, the Medal of Honor Foundation, and the USO of New York.
• Samuel S. Weiser: a member and chief operating officer of Sellers Capital, an investment management firm. He was a managing director responsible for the hedge fund consulting group at Citigroup and is a former partner of Ernst and Young.
• Michael R. Levin: the chief financial officer of AbaStar MDx, a medical diagnostics company, and former finance and risk management executive with several US public companies. He owns and operates The Activist Investor, an activist investor advisory firm.
"Paragon is in dire need of a management change," says Sham Gad. “Since 2003, the company’s share price has declined by over 90 per cent, sales have fallen off a cliff, and book value continues to deteriorate. For the past several years, management has stated its intent to create shareholder value. Yet during that time, the company’s shares have declined precipitously while the company has been depleting its cash balance. Paragon no longer has the luxury of time."
