Paragon Technologies solicits votes for the election of its nominees at Rubicon Technology (RBCN)

M.Cap: $22 million | Rubicon Technology, Inc. is a vertically integrated, electronic materials provider specializing in monocrystalline sapphire for applications in light-emitting diodes (LEDs), optical systems and specialty electronic devices.

In May 2016, Paragon Technologies nominated two board candidates. At the AGM held on June 24, 2016, no votes were cast with respect to the two director candidates nominated by Paragon Technologies, Inc

In March 2017, Paragon Technologies announced that it has initiated a proxy contest to elect Sham Gad at the 2017 annual meeting of shareholders.

In May 2017, Paragon Technologies announced that it has terminated its current settlement discussion with Rubicon.

In 2016 and 2017, Paragon Technologies publicly presented a plan in order to unlock the potential value imbedded in the company's assets. It outlined tangible, actionable ideas as to how unlock and compound shareholder value. But the company rejected Paragon's plan

On February 24, 2022, Paragon Technologies (2.7%) issued a presentation entitled, "Transforming Rubicon Technology".  In its presentation, Paragon expressed its concerns with the performance of the company, poor corporate governance practices and poor leadership. Paragon outlined a 100 day plan which insists, (i) declassify the Board, (ii) Eliminate and reduce all unneeded costs and take swift action to cease the losses at the sapphire business, (iii) Present strategic plan to shareholders, (iv) Present and execute acquisition candidate to shareholders. Further, Paragon delivered two options for the company, Option 1: Acquisition of all shares held by insiders, approximately 17%, for $10.10 per share in cash, Option 2: Public tender offer to acquire 20% of outstanding shares for $10.10 per share. Also, it stated that it intends to file proxy materials to be used to solicit votes for the election of director nominees at the 2022 annual meeting of stockholders.

Valuation Insight

Rubicon (RBCN) presents a compelling upside opportunity with an implied share price range of $16–$34, reflecting 78% to 280% upside under various scenarios. Assumptions are based on conservative earnings multiples, real revenue projections, and potential NOL utilization.

On April 27, 2022, Paragon Technologies, Inc filed proxy materials soliciting votes for the election of its director nominees at the 2022 AGM.

On May 13, 2022, Paragon Technologies calls on the Board to demonstrate its adherence to the best standards of corporate governance and take the necessary steps to address Rubicon’s corporate governance deficiencies, by moving to terminate the company’s poison pill and declassify the Board at this year’s annual meeting and taking proactive steps with shareholders to secure the necessary votes. Source