ParagonX Holdings, Inc. Transformational Plan Update

PR Newswire
3 min read

In This Article:

BUFFALO, N.Y., Feb. 14, 2024 /PRNewswire/ -- ParagonX Holdings, Inc. (OTC: CAVR) – Caprino Management, LLC provided the following update to shareholders on its transformation of the company:

  • Caprino Management, LLC continues to manage the company's transformation and is evaluating three major acquisition opportunities.

  • The company announced that its subsidiary HRS has secured $18 Million in new contracts contingent upon closing on additional capital.

    • The company is negotiating with multiple interested lenders to provide this capital.

  • The company announced that AVRover and HRS have now reached profitability.

  • The company reduced its debt by over $5 million since August 2023.

  • The company reduced its total outstanding share obligations by 21% (605 million shares).

    • 475 million common share obligations eliminated.

      • 4.75 million Preferred B Shares returned to treasury.

        • Each preferred B Share is convertible into 100 common shares.

    • 200 million common shares were rescinded in July 2023.

    • EROP, Inc. redeemed 70 million common shares.

  • Neither the current board members nor Caprino Management, including Joe Caprino, have received any salary nor made any profit from their investments in the company in the last two years.

  • The Board of Directors extensively discussed selling its RenuYou subsidiary to SOAAK Technologies in 2023. The Board unanimously approved the sale, given the written demands for compensation by its Chief Financial Officer and other creditors. The cash proceeds of $500,000 received from the sale were distributed as follows:

    • $185,000 to the company's subsidiary Trudant, run by the company's former Chief Financial Officer.

    • $242,000 to the company's subsidiary Sinacori Builders, LLC.

    • $73,000 to pay creditors.

  • The company is preparing for a Shareholder vote to elect additional directors and to replace Bob Cornaglia who resigned this week.

  • The company will call for a Shareholder vote, if required, to effectuate the acquisitions currently being evaluated by Caprino Management.

"We've gone from a loss to profitability in our HRS and AV Rover subsidiaries, landed $18 Million of revenue opportunity for our HRS subsidiary, reduced common share obligations by 21%, reduced company debt by $5 million, negotiated with several creditors, and settled litigation.  These substantial accomplishments will provide the foundation for us to make effective and accretive acquisitions.  We believe the current share price does not reflect such progress and we remain bullish on the company's enterprise value once the next phase of our transition and turnaround plan is complete." Joe Caprino, President of Caprino Management and Acting CEO of ParagonX Holdings, Inc.

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