Hannover House Inc (HHSE)

[MoneyMan]

Still so much debt out there left, could be a number of entities.

* What sort of Dilution or Debt-Conversion Activities are anticipated?

ANSWER: Horrible day for HHSE - as, despite a lengthy stalemate and press for alternative settlement - we were informed this afternoon that the transfer agent (Standard Registrar) had accepted the power-of-attorney demand for conversion shares from Magna (re: TCA GLOBAL MASTER FUND), resulting in their demand for debt conversion shares. PLUS in two, separate and badly-timed transactions, both JSJ and Blackbridge have each notified Standard Registrar of the conversion of 2014 and older debts notes into shares. Accordingly, approximately 15-mm shares have already been added to the overall, available inventory of HHSE Common Stock, and approximately 10-mm shares in addition may be demanded for issue under these power-of-attorney demand provisions. We believe that these transactions were all timed by the note-holders to be processed in order to occur prior to the Aug. 15, Q2 filing deadline, for OTC Markets Current Status Reporting Requirements - perhaps "just in case" HHSE did not meet the filing deadline.

It's difficult to see a "good side" to these three transactions, because the share price is so currently low that the dilution is a disproportionate pain to the benefit of debts. But as some will ask, what benefits have been achieved as a result? TCA will have been reduced by $50k, National Bank of California by $50k, and five smaller debt holders have been reduced through payments and negotiated settlements by an additional $226,250. The total debts carried on the balance sheet will show a reduction of $326,250. Each of these transactions would have been far less painful had the PPS for HHSE been stronger than it is today - but with the company's delays in refiling of the Form 10 - and management time being demanded for new release duties - the PPS has suffered and the timing of these transactions has been horrible.

AS OF THESE CONVERSION TRANSACTIONS - THERE EXISTS ONLY ONE MORE AGING NOTE (which is for a modest sum of $25,000 and which HHSE plans to pay off in cash before it's maturation in October). As for the remaining balance due to TCA ($156,000), HHSE is working to create a mechanism for the accelleration of receivables from NETFLIX licenses - in order to pay off TCA in CASH rather than carrying the painful burden of them forcing a share conversion. It is not necessary to email or call Shefte and Parkinson to express shareholder disatisfaction for these transactions; the officers share this sentiment and fought to stop these from occurring.

http://hannoverhousemovies.blogspot.com/2015/08/hhse-general-updates-and-responses-to.html




NB Cal AFIL P&A Loan 249,306

http://www.otcmarkets.com/financialReportViewer?symbol=HHSE&id=143285