Northstar announces aggressive share buy-back and cancellation program to reduce outstanding securities by up to 200 million shares.
27 Feb, 2013, 09:30 ET
HOLBROOK, N.Y., Feb. 27, 2013 /PRNewswire/ -- Northstar Global Business Services, Inc. Symbol (OTCPink: MDIN), today announced that it has started implementing an aggressive strategy to tighten up its share structure and decrease its outstanding shares by a minimum of one hundred million shares, and a maximum of two hundred million shares. The decrease will take place through a combination of share purchases in the open market, and cancellation of certificates currently issued but not yet deposited. By doing this, the company hopes to aid in the increase of its share price to levels that better represent the success of the company.
Northstar's CEO, Nicholas Chieco explained, "It's truly ridiculous for us to be trading at these prices considering how much we have accomplished, so by buying back as much as a hundred million shares in the open market, we can eliminate any dilution caused by old restricted stock certificates that have become free trading in the past six months, and then some. By making deals to cancel another hundred million restricted shares that are out there, we can avoid that dilution from ever happening again." The company plans to acquire shares in the open market up to a price of about ten cents, or a hundred million shares which ever comes first.
Once purchased and in the treasury, the company will cancel most of the shares, keeping only a small amount, about a quarter of them, available should the company need to fund inventory or equipment purchases in the future. "It's just smart business to keep some shares in the treasury. Registrations are time consuming and costly, so having some shares set aside assures us that if we run short of capital for any reason, that we have the collateral to secure investor funding. It's basically insurance so that we don't miss out on any unexpected opportunities in the future," Mr. Chieco added.
In addition to the share purchase, the company has struck a deal to cancel another 100 million shares in restricted equities. Overall the plan should decrease the company's outstanding securities by about 200 million shares and chop the public float almost in half. The company makes it clear that the goal is not only to build a tremendously profitable business, but to continue finding ways to decrease the number of shares in circulation, with the goal of having Northstar in a position to move to a higher market sooner rather than later. Northstar assures shareholders that it will continue along this path, and has only just begun finding creative ways to increase shareholder value.
For more information about Northstar, Contact Jennifer at 1-877-571-4387 or Email: [email protected]
Northstar Global Business Services is dedicated to producing the best alternative healthcare products. The most popular products in Northstar's arsenal are Snorenz©, a patented spray for snoring relief and Stem-Intense, a unique stem cell replacement therapy supplement. Most of the company's products use a unique spray delivery system, and have received very positive consumer reviews all over the world, selling millions upon millions of units from 1996 to the present.
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.
SOURCE Northstar Global Business Services, Inc.
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