HOLBROOK, N.Y., Dec. 17, 2014 /PRNewswire/ -- Northstar Global Business Services, Inc. (OTCPink:MDIN) today announced that The Depository Trust Company (DTC) has made their final decision and has determined to lift the Deposit Chill on the Company's stock effective December 15, 2014, and has resumed accepting deposits of Northstar's common stock for depository and book entry transfer services. All deposit restrictions have been removed, and the Company is now once again fully "DTC Eligible", and has resumed electronic trading of the Company's common stock.
A DTC "Chill" is a restriction that requires shares to be traded and cleared manually, using paper certificates instead of the electronic system operated by the DTC. It was originally placed on Northstar several years ago due to a large number of share issuances, which the DTC views as a red flag to potentially unnecessary dilution. To remove the restriction, Northstar had to prove that every issuance the company has done to date were legal issuances that were important for the company's growth and survival. The removal of the chill means that shareholders who have brokerage accounts with firms that do not allow transactions involving non-DTC eligible issuances will once again be able to buy and sell Northstar's common stock through the electronic system that controls clearance and settlement. This should bring Northstar additional liquidity, and save investors from paying the extra fees some firms charge for non-DTC eligible stock purchases. The company reasons that a much larger population of potential investors, now being able to more easily buy Northstar shares, should translate into liquidity and a larger demand for common stock in the company, especially considering the recent developments.
Northstar's CEO, Justin Sindelman, commented, "The issue of the chill is one that has handcuffed Northstar and limited trading of the stock for more than two years. The company's legal counsel, Kaleem Sikandar, worked extremely hard to satisfy all of the DTC's requirements, and that hard work has definitely paid off. I'm thankful that we've finally provided sufficient proof to demonstrate to the DTC that Northstar has always operated with both the growth of the company and its shareholders' best interests at heart."
According to Sindelman, the chill removal could not come at a better time. The company has many exciting plans for the future, and this represents the first of many big leaps forward. New Co-Chairman, Michael Diep, has been working diligently to engineer distribution deals to help thrust Northstar into a period of consistent growth. Although the company is being careful not to give out any details before they are ready for release, Mr. Diep has made substantial strides forward, including advancements towards structuring a deal that will bring the entire product line to a very large and well known distributor, with channels in several Asian countries. The company aims to release full details as soon as possible.
Northstar Global Business Services is dedicated to producing the best alternative healthcare products to the world. The company's products include Snorenz®, Good Night's Sleep®, Stem-Intense, and more. Most of the company's products use a unique or patented spray delivery system, and all have received rave consumer reviews all over the world, selling millions of units from 1996 to the present. www.medgeninc.com.
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.
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SOURCE Northstar Global Business Services, Inc.