In light of the statement from Paragon Technologies Inc. (OTC:PGNT) on Thursday, the stock could come into focus among investors today. The diversified holding company owns around 4.9% of the outstanding shares of the firm Ocean Power Technologies Inc. Yesterday, the company published a statement addressed to the shareholders of Ocean Power.
The statement started off by asserting that the board of directors at Ocean Power were not acting with the sort of speed that was necessary to take care of the difficult situation in the company. It was also noted that the performance of the company in recent times has been a testament to the situation. In April 2021, Ocean Power added new members to its board and appointed a new Chief Executive Officer in the form of Phillip Stratmann. Since then, the stock price has plummeted by almost 90%. The company also noted that while the present management of Ocean Power continued to make positive assertions about the future, there was the possibility of running out of capital next year.
However, Paragon Technologies stated in its statement that all was not lost and things could still be turned around at Ocean Power with the right approach. The statement noted that the shares in the company could be worth as much as $3 a share, which would work out to ten times the current stock price. In order to achieve that, the company would have to put in place a better structure for operating costs, shift greater focus to marine advanced robotics, and practice discipline in terms of capital allocation.
Paragon Technologies also stated that it had significant concerns about the company’s board’s move to protect its seats and refusal to allow shareholders the right to vote in favor of the appointment of qualified directors from outside the company.