$MDIN - Northstar announces plan to take control of the company's securities and increase shareholder value using several aggressive strategies such as a stock buyback, dividends, and massively reducing the number of authorized shares
HOLBROOK, N.Y., Dec. 13, 2012 /PRNewswire via COMTEX/ -- Northstar Global Business Services, Inc, (OTCPink: MDIN), today announced a plan that attempts to decrease its float, stabilize its price, and flush out short selling and other activities having negative impact on the company's securities.
After repeatedly stating that the company would not focus on its securities at this time, but instead focus solely on building its business, CEO Nick Chieco has modified that plan, and now takes aim at those who are having a negative impact while looking to reward those who have supported the company. "We truly thought that the stock price would be stable and continue in an overall upward trend considering all of our progress, but it seems that aggressive day traders and short term investors acting on impulse and emotion have created strong resistance regardless of our tremendous progress this year. The shareholders believe in this company and support us wholeheartedly, and for that reason, I cannot sit idly by while a handful of market makers devalue their investment." Mr. Chieco said.
First, the company would like to verify that as of the close of business on December 12th, the company had approximately 169 million shares in its float, the same as it has been for some time now, and the balance of the outstanding shares are all still in certificate form with restrictive legends, as far as we can tell. The company maintains that although those paper certificates are not in the company's possession, Northstar would have to approve any changes to their status, and as of the past year, no requests have come in. Mr. Chieco also confirms that he has no plans to utilize company stock for funding or any other purpose that would cause dilution.
After consulting with several trading & finance experts, and the company's legal team, Mr. Chieco has laid out a full strategy to maximize value for the existing shareholders. The first phase is to decrease the float, so by order of a Board of Directors the company will invest as much as 35% of its net profit in the coming months towards buying back an estimated three quarters of the current outstanding shares, which would chop the current float in half. Once fewer shares are in the market, the shares purchased by the company will be cancelled, and the authorized shares will be reduced to as low as three hundred million shares but not more than a Billion.
Lastly the company is formulating a plan to reward current shareholders with a stock dividend, which would increase the holdings of only those shareholders who own MDIN as of a specific date, which is yet to be announced. Along with these well-known strategies, Mr. Chieco assures us that he has a few other tricks up his sleeve. "Those who would see our stock tumble by selling short, for example, have already taken a tremendous risk considering the validity of our proven track record and current successes, but now we have a few things in the wings that those betting against us will not expect, or like very much," said Mr. Chieco with a smile, as he added, " Of course any strategies used would only be used if they stand to have positive effects on existing shareholders. Northstar aims to be a company known for putting shareholders and their investments above all else."
About Northstar
Northstar Global Business Services is dedicated to producing alternative healthcare products. The most popular products in Northstar's arsenal are Snorenz (R), a unique anti-snoring aid and "Good Night's Sleep(R)", an FDA approved sleep aid. The firm's newer products include StemIntense(c) and StemEnhance(c) both supplements that use a new Stem Cell Replacement Technology. Some products use the company's patented spray delivery system; have received very positive consumer reviews all over the world, and sold million upon millions of units from 1996 to the present.
DISCLAIMER
This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.
To Contact Northstar you can call: Jennifer at 1-877-571-4387 or Email: investors@northstarbb.com
SOURCE Northstar Global Business Services
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