. 20 Peachtree Court Suite 103H - Holbrook, NY 11766
PH: 877-571-4387 | FX: 877-571-4387 | info@medgeninc.com
Dear Shareholders,
I am writing this letter in conjunction with a previously announced change in our share structure taking effect and being
updated on OTCMarkets. I am writing to remind everyone of the reason for the changes and explain its purpose a second
time so there is no confusion or misunderstanding. The changes, which are about to be updated, or are already updated at
the time you are reading this include a change in share structure representing an increase in outstanding shares and pubic
float that we have negotiated in order to facilitate several important and positive developments.
First, the company has had on its books, significant convertible debt that was convertible to a massive amount of shares
for the past few years. The note was created by former management as a way of regaining control of the company if
necessary. I am very happy to have recently announced that as a result of the changes, the debt has been reduced
tremendously as outlined in our last press released, and the terms of the remaining debt has been altered so that even fully
converted, the debt represents an insignificant amount of shares. The threat of massive dilution amounting to tens of
billions of shares has been completely distinguished.
Second, I think it is no secret that one of our growth strategies is the acquisition by or merger into a much larger form.
While I cannot, at this time, disclose any company names, progress of talks or discussions, or results, I can say that in
order to effect such a merger we would need to have shares on hand to give us some freedom in structuring a deal. This
requires an issuance to the company treasury, and the easiest way to accomplish this, as well as our first goal, is to utilize
the notes on the books to convert part of that debt into securities to be held in the company treasury.
The result is the following share structure (pending update on the OTCMarkets) 1,500,000,000 Authorized shares,
1,242,814,753 total shares outstanding, and 1,199,054,852 of those shares considered to be in the float.
In closing, I will remind everyone that although both the outstanding and public float have increased, a very substantial
portion of that new public float is basically an illusion because shares that are held in treasury and freely trading, are
considered part of the float regardless of who holds them. Our feeling is that even if the entire number of authorized
shares was actually in the public hands, our company still holds far more value than is shown in our current share price.
We now have product being sold by major retailers, we have product shipped, or in the process of shipping to many more.
We have a product line that is highly rated, and even includes a use of our patented spray technology in the new and
quickly emerging medical marijuana industry, with a solid partner who has a strong foothold in the industry.
Now, I know, as always there will be a group of individuals that will try to spin this as a negative thing. This small group
often tries to get people focused on small details instead of the big picture. If you interact with them, just ask yourself;
who sits in front of a computer all day badmouthing a company if they are not being paid to do it? The answer is nobody.
Their activity is totally biased and motivated by greed.
I know that this information is bittersweet. On one hand, potentially debilitating convertible notes have been eliminated,
freeing the company of a potential hazard, but on the other, the outstanding shares and float have increased. Those who
understand business know that steps like these are sometimes necessary, and if you are not willing to do the unpopular
thing, you have no real chances of becoming a market leader. I truly believe that our actions show that Northstar not only
has a chance, but we are destined to become a market leader.
I wish each and every one of you a wonderful weekend, and I remind you to watch for upcoming announcements.
Thank you for your time,
Nicholas Chieco
President/CEO of No
AI
