Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
ORIGIN RELEASING - HHSE's counsel filed a variety of motions and objections in the past two weeks, one of which contained an embarrassing typo in which HHSE was erroneously listed as the "Plaintiff" instead of as the "Defendant." While this attorney error did not appear to impact the accuracy and validity of the remainder of the filings, it does provide yet another example of why the HHSE "going forward plan" cannot include anymore micro-budgeted films from unrealistic or otherwise delusional producers. There is no financial upside to selling sub-standard productions, and the risk of irrational producers filing a lawsuit is not worth the effort. The Texas judge in the Origin case ruled that HHSE was "in breach" of the February, 2013 settlement agreement by selling videos past the six-month sell-off period (a factual point which HHSE did not oppose, and indeed, HHSE openly reported these sales). This "partial judgment" of undisputed fact does not dilute the accuracy of HHSE sales statements and payments, which are the basis of Origin's action. The HHSE Motion for Dismissal of the entire case is calendered for August 4th - and under Texas law and precedent - is expected to prevail.
CRIMSON FOREST - Plaintiff's counsel has extended to named Defendants a 21-day extension of time to file a response, based upon improper service. A clerical default against three of four named Defendants will be vacated following the formal motion, including failure to file a Motion for Default, failure to provide evidence of proper (legal) service, failure to notify Defendants and the written agreement by Plaintiff's counsel to HHSE for a 21-day extension as of July 10(providing until August 1 for a responsive filing). HHSE's cross complaint integrates the Crimson claims with the overall merger and financing agreement, and HHSE will seek to enforce the financial terms of the merger agreement, calling for a minimum of $1-million prior to May 15, 2017 (which Crimson did not pay), and additional financial damages of more than $3-million caused to HHSE and HHSE shareholders as a result of Crimson's breach of the merger and financing agreement. Per the terms of the March 8 Merger Agreement, and as filed with the S.E.C., disputes regarding the merger must be adjudicated in California, under California law. Accordingly, HHSE counsel feels that a cross-complaint in the Crimson matter is one of our responsive options - or alternatively, that a separate action can be filed by HHSE against Crimson for their breach of the merger and other acts that otherwise negatively impacted against HHSE (all of the strategic actions and decisions in this matter will occur prior to the August 1st filing date).
UPTONE RELEASING ("Union Bound") - HHSE has complied with all of the terms of the settlement agreement except a final release of unsold DVD returns (which requires the cooperation of wholesaler, Cinedigm Entertainment). HHSE has paid Cinedigm for costs and handling fees associated with the release of unsold merchandise, and we anticipate that these DVDs will ship to UPTONE by mid-next week. Upon receipt of merchandise, the settlement agreement will have been satisfied and proper court filings are required to be completed by Uptone's counsel in order to have this issue fully vacated and closed.
as mentioned in an earlier blog - HHSE has been active in prevailing, settling or otherwise progressing in cleaning up the company's balance sheet and other disputes. The purpose of these activities is to eliminate litigation, strengthen the company's balance sheet and generally improve the overall optics of HHSE as the company emerges from S.E.C. Registration and the simultaneous launch the highly-anticipated MYFLIX digital streaming venture. Over $5-mm in debts have been paid, settled or otherwise retired by HHSE over the past few years - and strategies are in place for all of the company's major creditors. Most of the nuisance lawsuits have already been adjudicated in HHSE's favor or otherwise dismissed. There are three currently active litigation matters that are in motion, for which shareholders are seeking status updates.
NEW MEDIA - the new MYFLIX Venture into digital streaming(www.MyFlix.com), has over 30-studio and film library participants, collectively with over 10,000 feature films and television episodic hours of entertainment. This platform will have (literally) THOUSANDS of movies not available on any other streaming site. Less than ten years ago, NETFLIX was a mail order video rental business. NOW they are among the top movers and shakers in the entertainment industry DESPITE having a very limited selection of programming for viewers. We believe that MYFLIX could be a revolutionary new streaming destination - and a massive turning point for Hannover House.
STOCK REGISTRATION - HHSE is currently on the "OTC-Pinksheets" exchange. This status has impeded some large, institutional investors and hedge funds from buying into the stock. However, the pending Form 10 filing(including audits), will elevate the stock to the OTC:QB status as an initial step towards possible further up-listing. The OTC:QB status will open the door to significant new shareholders, which most professional traders and investors feel will dramatically improve the PPS and trading volume for HHSE.
NO STOCK ISSUANCES / NO DILUTION - HHSE has not issued any new shares in the past three years, and management has repeatedly stated that there are no plans to dilute shareholders through any deals now in motion or anticipated in the future.
PRESENTLY UNDER-VALUED PPS - Based on the Price-Earnings ratio for other publicly traded film / entertainment distributors, HHSE should be enjoying a 22X share price based on earnings. HHSE is on target to realize $1,250,000 in earnings for FYE 12-31-2018. This supports a share price of $.034 at present... and does not take into account the tremendous good-will and enthusiasm factor for the upcoming launch of MyFlix. Some highly respected stock analysts have communicated to HHSE management their prediction that the company's activities could support a share price of $.15 - which is more than ten-times current pricing. Even if their predictions are off by 75% - there is still an easily justifiable share price that is many times more than current trading levels.
TIMING-TIMING-TIMING - The launch of Myflix is a "second generation" site, in that the digital streaming technology and consumer acceptance have already been established. With that essential battle already won, MyFlix can concentrate on becoming "the better mousetrap" for digital entertainment. You combine this ideal market timing with the company's stock registration uplist, the presence of significant new shareholders post-registration, and new distribution pacts for the company's core film distribution activities (SONY / CINEDIGM), many feel that NOW is the ideal time to take a position in HHSE shares (while the HHSE Price Per Share is artificially low). Are these professional traders right? We will all know very soon!
HHSE makes no representation, guarantee or warranty that our share price will improve significantly as a result of these and other current activities. Every stock investment involves risks and factors outside of the control of issuers and management. But we proudly share with you the above information, projections and rationale' that professional traders have identified as the basis for why they believe that NOW is a great time to look at HHSE.
FORM 10 REGISTRATION activities are well into motion. HHSE managers believe that the fully reporting status (automatic on 60-days after filing), will positively impact the company's share price and volume.
MAJOR INSTITUTIONAL INVESTORS / FUNDS - HHSE managers have been working with three major investors / fund groups, one of which has already accumulated a position in HHSE. The other two are restricted from acquiring Pinksheet equities, but have confirmed with HHSE their intentions to acquire significant shares "post registration." HHSE managers believe that the successful recruitment of these major funds into HHSE will have a very significant and positive impact to the share price, volume and liquidity.
ELIMINATION OF BALANCE SHEET DEBTS - As a component of the Registration filing, HHSE managers have successfully negotiated substantial reductions in debts currently carried on the Balance Sheet (which have been achieved without any new share issuances). HHSE managers feel that this will improve the optics of the company's liquidity and credibility to outside financiers.
ELIMINATION OF BALANCE SHEET DEBTS - As a component of the Registration filing, HHSE managers have successfully negotiated substantial reductions in debts currently carried on the Balance Sheet (which have been achieved without any new share issuances). HHSE managers feel that this will improve the optics of the company's liquidity and credibility to outside financiers.
MAJOR INSTITUTIONAL INVESTORS / FUNDS - HHSE managers have been working with three major investors / fund groups, one of which has already accumulated a position in HHSE. The other two are restricted from acquiring Pinksheet equities, but have confirmed with HHSE their intentions to acquire significant shares "post registration." HHSE managers believe that the successful recruitment of these major funds into HHSE will have a very significant and positive impact to the share price, volume and liquidity.
FORM 10 REGISTRATION activities are well into motion. HHSE managers believe that the fully reporting status (automatic on 60-days after filing), will positively impact the company's share price and volume.
TIMING-TIMING-TIMING - The launch of Myflix is a "second generation" site, in that the digital streaming technology and consumer acceptance have already been established. With that essential battle already won, MyFlix can concentrate on becoming "the better mousetrap" for digital entertainment. You combine this ideal market timing with the company's stock registration uplist, the presence of significant new shareholders post-registration, and new distribution pacts for the company's core film distribution activities (SONY / CINEDIGM), many feel that NOW is the ideal time to take a position in HHSE shares (while the HHSE Price Per Share is artificially low). Are these professional traders right? We will all know very soon!
HHSE makes no representation, guarantee or warranty that our share price will improve significantly as a result of these and other current activities. Every stock investment involves risks and factors outside of the control of issuers and management. But we proudly share with you the above information, projections and rationale' that professional traders have identified as the basis for why they believe that NOW is a great time to look at HHSE.
PRESENTLY UNDER-VALUED PPS - Based on the Price-Earnings ratio for other publicly traded film / entertainment distributors, HHSE should be enjoying a 22X share price based on earnings. HHSE is on target to realize $1,250,000 in earnings for FYE 12-31-2018. This supports a share price of $.034 at present... and does not take into account the tremendous good-will and enthusiasm factor for the upcoming launch of MyFlix. Some highly respected stock analysts have communicated to HHSE management their prediction that the company's activities could support a share price of $.15 - which is more than ten-times current pricing. Even if their predictions are off by 75% - there is still an easily justifiable share price that is many times more than current trading levels.
NO STOCK ISSUANCES / NO DILUTION - HHSE has not issued any new shares in the past three years, and management has repeatedly stated that there are no plans to dilute shareholders through any deals now in motion or anticipated in the future.
STOCK REGISTRATION - HHSE is currently on the "OTC-Pinksheets" exchange. This status has impeded some large, institutional investors and hedge funds from buying into the stock. However, the pending Form 10 filing(including audits), will elevate the stock to the OTC:QB status as an initial step towards possible further up-listing. The OTC:QB status will open the door to significant new shareholders, which most professional traders and investors feel will dramatically improve the PPS and trading volume for HHSE.
NEW MEDIA - the new MYFLIX Venture into digital streaming(www.MyFlix.com), has over 30-studio and film library participants, collectively with over 10,000 feature films and television episodic hours of entertainment. This platform will have (literally) THOUSANDS of movies not available on any other streaming site. Less than ten years ago, NETFLIX was a mail order video rental business. NOW they are among the top movers and shakers in the entertainment industry DESPITE having a very limited selection of programming for viewers. We believe that MYFLIX could be a revolutionary new streaming destination - and a massive turning point for Hannover House.
TO BE CLEAR: THE AUDIT PACKAGE IS DELIVERED TO OUR REPUTABLE (PCAOB CERTIFIED) AUDITORS!
Delivering the HHSE Audit Package feels a bit like the final scene from "Indiana Jones"
At long last, the HHSE Audit package has been completed and will be hand delivered tomorrow morning (it was "after business hours" tonight when the final alphabetizing of the file folders was completed) Some aspects of the prep for this project were relatively easy... such as the electronically delivered Quickbooks ledger of sales and payables, and scans of 1120-S filings. But other items - such as the reconciliation of producer recoupment positions for over 450 titles(many going back to 2005) - as well as the copying and collating of agreements(which averaged 12-pages per title, plus term renewals). For these more voluminous elements, a physical copy from Fedex office was more expeditious than the time that would have been required to scan, upload and download more than 4,000 pages of supporting agreements.
But it's done, and we can all now set our sights on a prompt filing of our Form 10 Registration Statement - timed to correspond with our peak consumer promotions for MYFLIX in early August.
Stay tuned for updates! Onward & Upward!
FORM 10 REGISTRATION activities are well into motion. HHSE managers believe that the fully reporting status (automatic on 60-days after filing), will positively impact the company's share price and volume.
MAJOR INSTITUTIONAL INVESTORS / FUNDS - HHSE managers have been working with three major investors / fund groups, one of which has already accumulated a position in HHSE. The other two are restricted from acquiring Pinksheet equities, but have confirmed with HHSE their intentions to acquire significant shares "post registration." HHSE managers believe that the successful recruitment of these major funds into HHSE will have a very significant and positive impact to the share price, volume and liquidity.
ELIMINATION OF BALANCE SHEET DEBTS - As a component of the Registration filing, HHSE managers have successfully negotiated substantial reductions in debts currently carried on the Balance Sheet (which have been achieved without any new share issuances). HHSE managers feel that this will improve the optics of the company's liquidity and credibility to outside financiers.
ELIMINATION OF NUISANCE LEGAL MATTERS - The evolution and maturation of the home video business (away from Physical unit sales to streaming), has resulted in some dead-on-arrival DVD releases for HHSE over the past few years... and this has ended up in "nuisance" lawsuits from small producers that have ignored the contractual structure and disputed the applicability of releasing costs. One recent case, AMITYVILLE ASYLUM, was found in HHSE's favor, and another recent case (XVIII ENTERTAINMENT - four titles), was dismissed. There are other cases in motion, including Origin Films and Crimson Forest, that HHSE managers and outside counsel are very confident will also be easily won or promptly resolved with no adverse affect to HHSE. Accordingly, the elimination of these legal matters will also improve the optics and credibility for HHSE
TIMING IS IMMINENT: During the next few weeks, months and all occurring during this current fiscal year, HHSE believes that: a). Registration will occur; b). Myflix will be launched; c). New "whale" investor funds will begin accumulating shares; d). The new key-titles distribution pact through SONY and ongoing title releases through CINEDIGM will begin to monetize; e). The IRS Tax issue - the principal for which is now fully paid - will result in a formal "release of levy" filing; f). Production funding for two "event" level films will be finalized; and, g). HHSE's general credibility and financial position will dramatically increase.
WIDESPREAD SUPPLIER SUPPORT FOR MYFLIX - Like the opening day for the Oklahoma Land Rush, HHSE is at the starting line with our wagons loaded for a major digital stake into MYFLIX. The venture already has over 30 significant suppliers, including titles from three major studios, and potentially could be the # 2 streaming site in North America (subordinate only to Amazon.com) in terms of total quantity of features, television episodics, video games and educational programming. Titles that are currently "only" selling 5,000 DVDs suddenly become VERY PROFITABLE under the Myflix model, as there are no manufacturing or freight costs to dilute the revenue streams. Titles generating 5,000 TVOD transactions at $1.99 each (about $10,000) doesn't sound like a big deal... until you realize that Myflix now has access to over 10,000 titles and episodics. The potential revenues to be generated from this new streaming operation dwarfs even the best years ever achieved from the HHSE core activities with physical goods distribution.
The audit package is being presented Thursday morning; we are anticipating a process of about four weeks before the audited financials can be dropped into the otherwise completed Form 10 registration filing. An outside service has been engaged to format the audited financials into the XBRL formatting, and to submit to the S.E.C. Edgar department. This should put the Form 10 filing date at or near August 1st, approximately the same time that consumer promotions for the MYFLIX launch will be at a frenzied peak. We think the coordination of these two material events for HHSE could be a one-two punch to knock the stock into significant attention.
Due to the current, absurdly low stock price, HHSE managers reached out this morning to a securities attorney to seek an opinion as to whether it was LEGAL and APPROPRIATE for Parkinson and / or Shefte to PURCHASE HHSE shares off the open market in order to achieve a substantial R.O.I. benefit for their trusts.
Here's a summary of the securities attorney's opinion:
1). Yes, public company officers are allowed to buy shares on the open market, but these shares immediately become "restricted" from regular resale, as with all other officer owned or controlled Rule 144 shares.
2). Yes, but if a public company officer buys any shares, these acquisitions or dispositions must be disclosed in a Form 4 filing with the S.E.C. "...before the end of the second business day following the day on which a transaction resulting in a change in beneficial ownership has been executed."
3). Yes, public company officers can profit from buying shares during artificially manipulated pricing dips, but not if the officers have any involvement with the traders or brokers that have created the artificially low pricing.
4). Yes, public company officers CAN act on their superior knowledge of a company's operations and activities and make wise investment decisions... PROVIDED... that all of the key elements for motivating an officer's direct purchase of shares are based on publicly disclosed information... in order that no non-affiliate shareholders are impeded from having the same, superior and accurate information about the company.
HHSE managers are seriously contemplating the prospect of buying shares at these current pricing levels, and wish to note to all legitimate shareholders that all of the information otherwise considered "inside" or "beneficial" towards supporting such an opinion, has been reiterated above. HHSE managers have NOT stalled on
the filing of the Form 10, or the resolution of legal matters, in order to fuel this unusual stock pricing opportunity. If HHSE managers proceed with purchases of HHSE shares off the open market at these current levels, the disclosure requirements of a Form 4 statement will be properly filed with the S.E.C. in a timely manner.
TIMING IS IMMINENT: During the next few weeks, months and all occurring during this current fiscal year, HHSE believes that: a). Registration will occur; b). Myflix will be launched; c). New "whale" investor funds will begin accumulating shares; d). The new key-titles distribution pact through SONY and ongoing title releases through CINEDIGM will begin to monetize; e). The IRS Tax issue - the principal for which is now fully paid - will result in a formal "release of levy" filing; f). Production funding for two "event" level films will be finalized; and, g). HHSE's general credibility and financial position will dramatically increase.
WIDESPREAD SUPPLIER SUPPORT FOR MYFLIX - Like the opening day for the Oklahoma Land Rush, HHSE is at the starting line with our wagons loaded for a major digital stake into MYFLIX. The venture already has over 30 significant suppliers, including titles from three major studios, and potentially could be the # 2 streaming site in North America (subordinate only to Amazon.com) in terms of total quantity of features, television episodics, video games and educational programming. Titles that are currently "only" selling 5,000 DVDs suddenly become VERY PROFITABLE under the Myflix model, as there are no manufacturing or freight costs to dilute the revenue streams. Titles generating 5,000 TVOD transactions at $1.99 each (about $10,000) doesn't sound like a big deal... until you realize that Myflix now has access to over 10,000 titles and episodics. The potential revenues to be generated from this new streaming operation dwarfs even the best years ever achieved from the HHSE core activities with physical goods distribution.
ELIMINATION OF NUISANCE LEGAL MATTERS - The evolution and maturation of the home video business (away from Physical unit sales to streaming), has resulted in some dead-on-arrival DVD releases for HHSE over the past few years... and this has ended up in "nuisance" lawsuits from small producers that have ignored the contractual structure and disputed the applicability of releasing costs. One recent case, AMITYVILLE ASYLUM, was found in HHSE's favor, and another recent case (XVIII ENTERTAINMENT - four titles), was dismissed. There are other cases in motion, including Origin Films and Crimson Forest, that HHSE managers and outside counsel are very confident will also be easily won or promptly resolved with no adverse affect to HHSE. Accordingly, the elimination of these legal matters will also improve the optics and credibility for HHSE,
ELIMINATION OF BALANCE SHEET DEBTS - As a component of the Registration filing, HHSE managers have successfully negotiated substantial reductions in debts currently carried on the Balance Sheet (which have been achieved without any new share issuances). HHSE managers feel that this will improve the optics of the company's liquidity and credibility to outside financiers.
MAJOR INSTITUTIONAL INVESTORS / FUNDS - HHSE managers have been working with three major investors / fund groups, one of which has already accumulated a position in HHSE. The other two are restricted from acquiring Pinksheet equities, but have confirmed with HHSE their intentions to acquire significant shares "post registration." HHSE managers believe that the successful recruitment of these major funds into HHSE will have a very significant and positive impact to the share price, volume and liquidity.
FORM 10 REGISTRATION activities are well into motion. HHSE managers believe that the fully reporting status (automatic on 60-days after filing), will positively impact the company's share price and volume.
MYFLIX UPDATE - We are working on a variety of pre-launch activities for Myflix, including website development, mastering and uploading of titles, long-lead P.R. campaigns, launch ads and videos and strategic positioning and goals. However, for competitive reasons, we cannot publicly disclose more than just these broad strokes at this time. The total inventory of available content from our current suppliers is over 10,000 programs (feature films and or television episodics). About 800 of the initial 2,500 titles set for our July 27 launch date are already properly formatted / mastered for streaming access. The others will require some degree of mastering attention, most commonly the addition of closed-captions or reformatting into streaming compatible media
SHARE LIQUIDITY AND EXCHANGE - Once registered, the Company's shares can be moved to electronic trading platforms (DWAC / DTC) for simplified deposit of shares and trading eligibility for many larger funds and brokerages.
INFUSION OF NEW SHAREHOLDERS - There is a significant list of individuals, funds and investment groups that have been observing and following HHSE for years (and communicating frequently with Hannover House as to their interest). We're not talking about "toxic lenders" of the sorts like TCA or JSJ that function as neither legitimate investors nor lenders but are instead operating on the fringes of securities and usury laws by structuring inflated stock conversion ventures. No, we are talking about legitimate, high-net worth individuals and "whale" funds that see an EASY step to pop the HHSE stock to north of $.10 per share, prior to the implementation of more sophisticated investment tools (ranging from multi-million dollar lines of credit to direct stock purchase ventures). FOR INSTANCE - with HHSE at $.10 per share, an investment group pursuing a direct-stock purchase of 9.9% equity,would be buying approx. 80-mm sharesfor a payment directly to HHSE of $8-million. That would be an $8-million cash infusion that could be used to grow operations and revenues, and to clean-up the Company's balance sheet debts, perhaps negotiating substantial reductions in exchange for cash in some cases (most of which were already discussed with major creditors during last year's protracted Crimson Forest merger effort).
Please note that we are NOT saying that the Company definitely will obtain a multi-million dollar line of credit under attractive terms post-registration... and that we are NOT saying we will be issuing any new stock at all once the HHSE price hits $.10 per share. But we want it to be clear to our shareholders that these options would exist after a registration filing followed by the infusion of new shareholder capital on the open market. It's a powerful position that is obtainable for the Company... and one that does not currently exist as a Pinksheets-listed equity.