Hannover House Closes $5-mm Funding with TCA Global
Jun 03, 2013
OTC Disclosure & News Service
Los Angeles, CA -
Hannover House, Inc., (OTC: HHSE) has announced the closing of a $5-million revolving credit line with TCA Global Credit Master Fund. The agreement with TCA enables the Company to borrow up to $5-million, based on a mutually approved formula of eligible receivables and assets. Hannover House has already received the initial tranche of funding, which will be utilized primarily for new title acquisitions and releasing costs.
The closure of the financing agreement with Hannover House follows the completion of TCA's review and verification of company assets and accounts receivable, including Hannover House's 175-title film library and historic and current sales activities of titles in that library. Hannover House will be announcing eight newly acquired titles over the next few weeks, all of which are expected to be released during this fiscal year.
The TCA funding agreement designates that the use of proceeds be earmarked for the creation of new sales and Accounts Receivable, and Hannover House is restricted from utilizing the funds for the retirement of existing debt. TCA will maintain and operate a bank account lock box for the collection and disbursement of company's accounts receivable, and will become the senior, secured lender for Hannover House.
"We are pleased to have completed this financing transaction with TCA," said Hannover House President, D. Frederick Shefte. "The availability of significant funding for new title acquisition and releasing costs creates stability for the company and the certainty of continued growth and market viability."
Hannover House is a full-service entertainment distributor, with activities in the production, acquisition and release of films, videos and publishing properties in the North American marketplace. The company was founded in 1993 and has operated continuously in the publishing arena, with DVD products added in 2002 and theatrically-released features added in 2005. The company is currently on schedule to release fourteen new titles to the USA home video market during the remainder of 2013.
Hopefully it will turn out better than this did lol
