This letter from scumbag Chieco in 2013 is particularly hilarious because he's vowing vengeance against people for posting "illegal and fraudulent" messages online.
Of course the only one posting fraudulent messages at that time was Chieco himself, which is why no action was ever taken.
Then he fraudulently reported that MDIN "has become the target of acquisition interests by more than one very large firm" and he "would not want to go lower than six cents per share." And he said "the way I see it, hold on to this stock and you will make at least 3-400% within 6 months...where else will you get that kind of return?"
Blatantly fictitious statements like those is what suckered many into investing in the scam, and every MDIN CEO followed suit and should be prosecuted for fraud, along with their puppetmaster Barton.
Letter to shareholders 7/9/13
Dear Shareholders;
I’d like to update everyone on our status with the retail community, our distribution, a few rumors, and
share some thoughts on possible future goals for Northstar. First, I want to thank those of you who have
followed my tweets and emails, and added a positive element to our struggle. It is very easy to be negative,
and to point at the unknown and expect the worst. It is, however, not so easy to look at the unknown and
think positively, expecting the best from people, but that is what it takes to succeed. A single dedicated
person’s will can be very powerful, but the will of many like-minded individuals just cannot be stopped. Ok,
enough philosophy. Let’s get down to business.
In late 2012 I promised that Northstar would be ready to ship product on the 1st of the year, and I speculated
that we could be in stores nationwide thirty to sixty days later. We were good on keeping the promise and
we were shipping Snorenz to warehouses before January 1st. However, my speculation was not nearly as
successful. To clarify our sales to date, we have sold bulk product to distributors who sell to the major
retailers, and we have signed the deals to sell that product with four so called “big box” stores. I haven’t said
who they are, or who they are not, but there are maybe a dozen very large super retail chains in the US and
we have four of them locked down. Not bad. Now, with all great things there comes some negatives, and
with all great luck there comes the possibility for something to go wrong. Hurricane Sandy devastated the
distribution chains on the east coast and this postponed our retail distribution to the June-July plan-o-gram
that takes place in most of the retail community.
I had some pretty intense meetings last week to try to find out not only the status of our rollout, but I needed
some answers as to why it has taken so long so far. Now, initially Snorenz was being rolled out on an “end
panel” as a promotional item. Great distribution, but just a stepping stone to secure permanent shelf space.
The delay turned out to work in our favor. The three to four hundred stores that did receive the Snorenz end
panel sold a good portion of their stock immediately. This prompted retail chains to give us that permanent
space in the plan-o-gram, which was originally set for February-March [if I remember correctly]. Anyway,
the after result of Sandy, which wasn’t anticipated, ended up getting us to where we are now. We sell an
unexpected amount of product online, and to several distribution companies who are gearing up for the
retail rollout and who move product to other online stores and non-traditional retail outlets (like catalogs,
flee markets and all that does not fit into the “retail store” category). At the end of the day, a product sitting
on a shelf means nothing for Northstar. I think people are programmed to see that and think of the company
as successful when they do, but I would take the same number of sales online any day of the week in place
of losing ¾ of our profit putting it into a retail distribution pipe. In summary, it’s revenue, not shelf space
that determines success.
Nonetheless it’s important for NorthStar tomorrow, and that is what we are talking about. So first, why isn’t
the product on shelves now? Well there is a reason. It’s not a terrible reason, [but we know those few who
are hell-bent on spreading negativity and trying to make others miss out, the way they did, will twist this
into something it is not. They are not fooling anyone]. The reason is because of a dilemma involving a
similar product and retail shelf planners being unwilling to have two very similar products next to each
other unless at least one valid difference is clearly shown on the packaging. There is a product that is almost
identical in apparent use to Snorenz on the market today. But, Snorenz is patented, so how can this be?
Well, all I am allowed to say right now, is that it is being handled, and if so, I would not hesitate to take
action [if it was a last resort]. However, I always look for less drastic solutions and I know there is one,
because Snorenz is simply a superior product. Best-case scenario is this “other product” is taken off the
shelves permanently. The worst-case scenario is that we change the packaging to clearly state why Snorenz
is different and better (which it is). Bottom line is that we have been, and will be, delayed in rollout. While
this may initially sound like bad news, it’s not. It is the opposite in fact. The company that owns this other
product could turn out to be the biggest part of our success, and we are now discussing various partnership
arrangements, which will cut our expenses and increase profitability drastically, add tremendous
distribution, and take us global, all in a few steps. Just as has always been the case, this stroke of bad luck
has turned into more good luck than we all could have hoped for. Could it result in a 30, 60, or 90-day delay
in rollout to large retail stores? Sure, it could, but it is going to result in four or five times the revenue and
profit in the next quarter or two then ever expected. It could also add instant distribution of our other
products as well. So, actually it is the best thing to happen to Northstar since our re-awakening a year ago.
With that said we need a short-term solution as not to have a slight dip before the benefits kick in. We still
have several big-box stores putting us online through their web properties, and that will take place as soon
as the paperwork is processed. I am told 30-45 days but I hesitate to quote time periods after our DTC
debacle. As we have learned, anything can and probably will go wrong. You just have to prepare and react. I
have (or I should say our consultants, Sharper Edge Sales have) also solidified distributors who provide
product for smaller mom & pop, and franchise chains that represent easily an equal number of stores to the
big-box chains. We will finally be starting a long awaited campaign to distribute the products to every
independent retail location in America. We are also doing the same overseas. Ultimately, I am confident that
even my original expectations for 2013 will be blown away. We will announce these deals and some of the
store names for you as they come in so you can see that it is actually happening. We can do this because
smaller stores move much more quickly, and can be a little more understanding of the nonsense from the
few people who will attempt to sabotage us. We all know they will. They bailed pre-maturely and lost out,
and they want to ruin your chances too. That’s OK. We won’t be discouraged.
I am also happy to announce that our great company has become the target of acquisition interests by more
than one very large firm in our space. If you think about our scenario and apply other industries to it, you’ll
see that in any situation like this, the value of the company increases dramatically. For example, if a new
carmaker has a patented steering system that is similar to one Ford uses, Ford weighs out the profitability of
a lawsuit against an acquisition. If the patent is strong, they opt for the acquisition. However, in swoops
Toyota, who would love to have ford up against a wall. They want to buy this new company and offer more
for it. This forces Ford to increase its offer. Now, what if Mercedes wants in…this new car company
suddenly becomes extremely valuable even if they haven’t yet sold one car with their steering system. Make
sense?
Well, we are currently the object of this type of interest and our value or perceived value has skyrocketed.
How much? I know everyone wants to know a number. All I can give is an opinion, and I can tell you what
I would do right now. I am not quoting an offer or a possible deal, just an opinion. I would not want to go
lower than six cents per share. That would (very roughly) be four to five times our estimated earnings for
this fiscal year. Now, our suitors are at lower price levels right now, but these numbers are still considerably
higher than our current share price. I know some of you will scream, “take it!” but I cannot take an offer that
is undervaluing the company even if it is ten times the current share price. It would not be fair to you and it
would likely result in further concession, anyway. I will get my price or I will continue to build the
company until even our price is surpassed by the actual current value of the company.
I know many of you also want to know about the “celebrity endorsement” that was mentioned. Well, we
haven’t terminated talks, but it has not been a priority, so those talks have stalled to some extent. I wish I
had an announcement of an endorsement for you today, but I made a commitment to be honest and
transparent, so I must say that the opportunities (there were three) may have very well gotten away from us.
Although, those opportunities are not officially gone, so I will continue to pursue them.
I know this letter is quite long, so I will wrap it up as quickly as I can. I just wanted to address one last
thing. We all know we have our detractors. These individuals, in my experience, often have no business
background and really do not understand what amazing leaps forward we have achieved. In normal
situations it would take three years to get where we are now. We have been lucky, and we have worked
really hard. They do not understand that, and so they take cheap jabs. They twist words, and they make
incredible leaps and conjure up conspiracy theories that would be great in a movie, but do not apply to real
life. Unfortunately, sometimes they cross the line and their annoyance becomes illegal and fraudulent. I am
sorry to say that a few of these individuals have approached Northstar and others as representatives of both
other corporations and as Celebrity agents attempting to get illegal inside information from us. We will
work with law enforcement and the other parties as always to find and prosecute these people, and we
simply will not let them get away with it. That’s a promise I make to all of you.
The best way for us all to deal with these sad people is to avoid giving them a voice. If we argue, engage
them, answer them, or try to prove anything to them, we are only legitimizing their flawed logic. We should
all make a vow to completely ignore them 100%. This will dismiss them and stop their negativity from
being spread. Drown them in our dreams, and suffocate their bad intentions. They are not worth our energy.
The last thing I’d like to suggest is not to let the small things become bigger than they are. The chill, an item
on a store shelf, can all be made to be these huge sticking points by the “bashers” that everyone is on the
edge of their seats waiting for and anticipating like they are the savior. When actually, neither one has really
effected us as a company thus far, nor will it in the end. Our next big hurdle is to complete audited
financials and up-list. Then all the other things are completely meaningless. Our share price is where it is
now because of the “wild west” of the pink sheets, not because of a chill or a retail store shelf. Now, I
cannot promise a big firm will buy us out next month, nor can I promise we will have any particular share
price. One thing I can promise you is that our revenue has and is going up, no shares are being issued to
dilute, and we will become audited/reporting, all of which will definitely positively have a much larger
effect on our share price than a chill or a retail shelf ever will. If they happen tomorrow, next month, or next
quarter, the result will be the same. If we are all patient, we will all taste that success in a relatively short
period of time.
I hope I answered some of the big questions clearly to give everyone an understanding of the basic flow and
what is actually important here. Business on this level can be quite complicated if you are not immersed in it
every day, so I try to simplify it the best I can. Please remember that it is a simplified version of the actual
details, and also remember to read the words “might”, “should”, “could”, etc. So there’s no confusion.
Again, I thank you for your positivity, support, trust and patience. It will pay off tenfold.
Have a wonderful day.
Nicholas Chieco
Chief Executive Officer
Northstar Global Business Services, Inc. (OTCPink: MDIN)
