Hannover House Inc (HHSE)

[The Rainmaker]

First I think it's important to explain what you were referencing. You were talking about the money owed to TDGI/Hannover by Anderson Merchandisers, Allumination FilmWorks (aka "Peace Arch Entertainment), Gravitas Ventures and Starlight Home Video.

The money is owed to TDGI/Hannover by what looks like four companies of which a division of Peace Arch is one of the four. It looks to me like they lumped all their hard to collect accounts into one journal entry. Good chance only a portion of those receivables belonged to Peace Arch. TDGI/Hannover reserved this money when they did their financial filing. Peace Arch looks like they have a lot of inventory to go after if it comes to that imho.

ACCOUNTS RECEIVABLE -- Management has elected to hold back or reserve approximately $1,165,011 in accounts receivable and / or contracts receivable from Anderson Merchandisers, Allumination FilmWorks (aka "Peace Arch Entertainment), Gravitas Ventures and Starlight Home Video due to collection issues or disputes still pending resolution.

Second regarding Peace Arch: They knew they were moving from AMEX to pinks (PAEGF is their ticker now). Says they're continuing with business as usual. They have a lot of inventory they could give to Hannover to sell as well it seems from their website.

http://www.peacearch.com/default.asp

PEACE ARCH ® ENTERTAINMENT PROVIDES ADDITIONAL INFORMATION REGARDING ITS U.S. LISTING AND THE FILING OF ITS FISCAL 2008 FINANCIAL STATEMENTS

TORONTO – September 28, 2009 -- Peace Arch ® Entertainment Group Inc. (AMEX:PAE) (TSX:PAE.T) today provided an update with respect to the listing of the Company’s shares on the NYSE Amex LLC (“Amex” or the “Exchange”) and the filing of the Company’s audited financial statements for the year ended August 31, 2008.

As previously disclosed, on September 17, 2009 the Company received notice of Amex’s intent to delist the Company’s shares. The Company did not appeal Amex’s decision, as a result of which the Company’s shares are scheduled to be delisted from Amex on September 30, 2009. After delisting from Amex, the Company expects its shares to begin trading on the Pink Sheets beginning October 1, 2009. The Company’s business operations will continue in the normal course and will not be affected by the status of its Amex listing.

The Company plans to have its shares trade on the OTCQX after the Company files with the Securities and Exchange Commission (“SEC”) its Annual Report on Form 20-F for the year ended August 31, 2008, its quarterly reports for the periods ending November 30, 2008, February 28, 2009 and May 31, 2009, and the Company’s shares resume trading in Canada on the Toronto Stock Exchange (“TSX”). On December 18, 2008, the Ontario Securities Commission (“OSC”) issued a cease trade order for the Company’s shares in Canada due to the Company’s failure to file its audited financial statements for the year ended August 31, 2008.

As previously disclosed, Peace Arch has been unable to obtain certain financial information relating to the year ended August 31, 2008 from a number of unrelated companies whose results Peace Arch is obligated to consolidate under variable interest entity rules. Because the Company’s auditors are unable to audit information that is not accessible by Peace Arch, the Company has not yet been able to obtain an unqualified audit opinion. The Company has been advised that the OSC generally does not accept qualified audit opinions. Consequently, Peace Arch has not yet filed its audited financial statements for the year ended August 31, 2008 with the OSC or its Annual Report on Form 20-F with the SEC.

At this time, the Company intends to file its Form 20-F for the year ended August 31, 2008 with the SEC on or around October 15, 2009. Peace Arch expects the audit opinion accompanying that filing to contain a qualified scope limitation with respect to the aforementioned variable interest entities. The Company therefore expects the OSC to leave the cease trade order in Canada in effect until such time, if ever, as Peace Arch obtains an unqualified audit opinion or a waiver from the OSC. No assurance can be given that the Company will obtain an unqualified audit opinion or a waiver from the OSC. The Company plans to continue pursuing each of these matters diligently and will provide updates as relevant information becomes available.


About Peace Arch Entertainment Group Inc.

Peace Arch Entertainment produces and acquires feature films and television programs for distribution to worldwide markets. The Company’s award winning drama “The Tudors” airs on Showtime in the United States and the CBC in Canada, and its lifestyle series “Last 10 Pounds Boot Camp” and “Bulging Brides” both air on FLN in the United States and Slice in Canada. Peace Arch’s recent feature film releases include “The Mysteries of Pittsburgh” starring Jon Foster, Peter Sarsgaard, Sienna Miller, Mena Suvari and Nick Nolte, and “JCVD” starring Jean Claude Van Damme. For additional information, please visit www.peacearch.com.