Paragon Technologies Issues Statement to Shareholders of Ocean Power Technologies Regarding the Shameless Entrenchment Actions of the OPTT Board

EASTON, PA / ACCESSWIRE / December 6, 2023 /

To the Shareholders of OPTT:

Paragon Technologies ("Paragon") (OTC PINK:PGNT), owns approximately 4.9% of the outstanding shares of Ocean Power Technologies (NYSE American:OPTT), ("OPT" or the "Company") making Paragon the single largest holder of OPT based on publicly available information.

On November 30, the Delaware Court denied Paragon's request for a preliminary injunction relating to OPT's onerous advance notice bylaws, seeking additional information relating to the facts to make a final ruling at a trial, which we expect will follow OPT's annual meeting. In the ruling, the Court noted numerous doubts with the OPT Board having acted in good faith. As with the prior litigation in which the Delaware court found a credible basis of wrongdoing by the OPT board, we believe the OPT board continues to lay down a record of shameless entrenchment and dishonesty.

Let's examine some of the facts:

Weeks after Paragon reached out to OPT citing its concerns about OPT's disastrous and worsening financial performance and discussing potential board representation, OPT immediately hired an activist shareholder defense attorney and amended its corporate bylaws. In amending those bylaws, OPT effectively gave itself the broad power to deny candidates for board seats that the board does not approve.

Rather than hold Paragon to the same requirements that the current directors are subject to, the OPT board set-up shareholders trying to nominate alternate director candidates with a series of "gotcha" provisions that allow OPT's lawyers to dream-up an endless list of "deficiencies."

OPT is telling shareholders that because OPT may become involved in business dealing with national security, they are "concerned" about outside board candidates' ability to receive a national security clearance.

OPT has never had a national security contract nor was one under consideration. None of the current OPT Board of Directors possess a national security clearance.

Additionally, after having significant NOLs for more than 30 years, in response to Paragon's election campaign, the OPT board has now decided to adopt an NOL poison pill to block Paragon's share ownership at 4.99%.

Shareholders should ask themselves why OPT's Board and CEO would essentially fabricate such a scheme? With rapidly declining cash balances and the risk of insolvency, why wouldn't the OPT board preserve the company's precious cash and just let shareholders vote?