Hannover House Inc (HHSE)

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BLOG: News from New York: HHSE Shareholder's Meeting




Hannover House Investor Relations Blog

Friday, February 21, 2014

News from New York: HHSE Shareholder's Meeting

Greetings Friends & Shareholders of HHSE - In about 90-minutes, the 4th annual meeting of Hannover House shareholders will commence. This year, the meeting is being held in New York City, in the Park Ave. Boardroom of the Grand Hyatt Hotel, 42nd St. / Grand Central Terminal.

In respect of the large number of shareholders who were unable to attend the meeting in New York today, listed below is a brief recap of the only "material" event to be discussed today, e.g., the formation and launch of MEDALLION INTERNATIONAL PICTURES to the Hannover House group of companies.

Over the years, Hannover House has been challenged with the goal of trying to acquire the rights to "high-profile" pictures. The Company has known that we're just "one movie away" from being a major, independent studio... just as "Blair Witch", "Saw" and "Twilight" each transformed IVE /Artisan, Lionsgate and Summit respectively. The problem has been that "acquiring" the rights requires a major capital investment, and the company has been cash-poor at that level.

The solution was determined through the past year, by leveraging co production opportunities, State and Federal Tax incentives (and in some cases, 'incentives" from foreign countries such as Ireland); and combining these elements with international pre-sales and private investment equity. The goal for Hannover House is to have 4 to 6 "event-level" films per year without financing the production or acquisition through existing Hannover House means.

Medallion International Pictures will make its first market presence at the Cannes Film Festival and Marche du Film this spring, in mid-May. The company will be "pre-selling" three movies for which some aspect of the financing structure requires a presale component; the company will also be taking direct (non-presale) licenses for several films for which all financing is already secured (e.g., "The Legend of Belle Starr") or completed pictures. The initial value of the Medallion production slate is $40-million, of which about half is expected to be generated back in sales and licenses from the international markets. Hannover House will earn a significant "fee" on all such international sales, thus having a substantial and material impact to our revenues and bottom line. In anticipation of shareholder questions about how these major movies are being financed (and how this will have no impact on share structure of debt-liabilities to Hannover House), we have prepared example flow-charts for two of the "announced" titles, "MOTHER GOOSE" and "LEGEND OF BELLE STARR." The other initial, high-profile theatrical releases being launched at Cannes under the Medallion venture will be announced prior to that market.

Other agenda items at the SH meeting include a discussion of the "steps-to-uplist" the company's stock, including the filing of the Form 10 registration (and the option of S1 or direct compliance, the latter of which is already in motion and evidenced by the company's approval for Edgar reporting). The addition of more than ten new supplier studios to VODWIZ will be discussed (as well as the consumer roll-out of that venture), and an overview of approximately 40 titles for DVD release during 2014.

Lots of amazing and exciting developments... time to grow HHSE into a mainstream name!

http://www.hannoverhousemovies.blogspot.com/2014/02/news-from-new-york-hhse-shareholders.html







Todays Blog has flow charts for the Feature Film Production / P&A Financing Model for both "The Legend of Belle Starr" and "Mother Goose: Journey To Utopia". I can not duplicate these, so go to the actual BLOG for a readable version.



Feature Film Production / P&A Financing Model
The Legend of Belle Starr
Special Purpose Entity / Investors Secure Bank Loan
(Belle Starr, Inc. / 18-Month Line of Credit)

$3.5-Million


Special Purpose Entity Produces Film
Delivery to Medallion International Pictures for Foreign
Delivery to Hannover House, Inc. for North America


First Incoming International Hannover obtains P&A from
Revenues from Medallion SPE Line of Credit and from first
Go To Supplement USA P&A incoming International Sales


Medallion licenses the film Hannover generates revenues
To applicable territories and from North American Media,
media outside of N. America Theatrical, Home Video, V.O.D.


Medallion Net Revenues HHSE Net Revenues after fees &
(after first P&A payment) Costs from N. American Media go
Go to SPE to retire bank to SPE to retire bank loan
loan & interest

COPYRIGHT OWNERSHIP and FULL EQUITY IN THE FILM
Transfers to Hannover House at a pre-determined profitability
level from net revenues in the film (subject to ongoing third party
participations and guild residuals).


Feature Film Production / P&A Financing Model
Mother Goose: Journey To Utopia
Special Purpose Entity / Investors Secure Bank Loan
(Mother Goose, LLC / Ireland / Louisiana / 18-Month Line of Credit)

$12-Million


Special Purpose Entity Produces Film
Delivery to Medallion International Pictures for Foreign
Delivery to Hannover House, Inc. for North America


Elements of the Financing Plan
* International Presales / Major Rights License - $5-million
* EU Location & Post Production Incentive Benefits - $1-million
* Louisiana Production Incentive Benefits - $3-million
* "Gap" Bank Loan secured against unsold territories - $3-million


First Incoming International Hannover obtains P&A from
Revenues from Medallion SPE Line of Credit and from first
Go To Supplement USA P&A incoming International Sales


Medallion licenses the film Hannover generates revenues
To applicable territories and from North American Media,
media outside of N. America Theatrical, Home Video, V.O.D.


Medallion Net Revenues HHSE Net Revenues after fees &
(after first P&A payment) Costs from N. American Media go
Go to SPE to retire bank to SPE to retire bank loan
loan & interest

COPYRIGHT OWNERSHIP and FULL EQUITY IN THE FILM




HHSE