Blog-4/17: Venture Partnerships; Consortium of Multiple Companies Merge
* Hannover House (HHSE) * Another Publicly-Traded Company * Two Private Companies * Major Studio Distribution Partner
The Beginning of Something Truly Significant…
WHERE ARE WE NOW - WHERE ARE WE GOING FROM HERE?
Last Month, on March 10 specifically, Hannover House managers signed a letter-of-intent to join with another publicly-traded company, two private companies and a major studio distribution partner, to create a new structure that addresses each of the Ten Essential Trends described above, and which we feel will bring substantial value to our shareholders.
Over these past five weeks, the legal, operational and structural changes that are required to effectively launch such an ambitious merger have been in motion. The two privately held companies will join with the two publicly-traded companies into an overall venture that is fully reporting, fully registered, and sufficiently funded to allow for a realistic pursuit of a NASDAQ listing. This venture involves the placement of approximately sixty-five million dollars (USD $65,000,000) from pre-existing international presales and feature film private investor commitments, and will provide us with both the high-end “major” titles as well as the first two-years of the “mid-level” theatrical titles. Due to availability of State and Federal incentives and rebates on the productions, the company will also be well funded with theatrical releasing resources – as well as earning lucrative production company service fees upfront. A major studio partner will handle most of the domestic home video and V.O.D. activities (excluding VODWIZ.TV) as well as international sales through their existing distribution units in over 100 territories worldwide.
Upon regulatory approval, existing Hannover House shareholders will receive a significant premium-to-market redemption, and overall, the Hannover House shareholders will retain a majority control in the combined entities.
Over the next few days, details of the venture partners will be released through mutual public announcements. As the merger L.O.I. contains performance triggers (including specific funding requirements and regulatory approvals), Hannover House has honored the temporary, proprietary confidences imposed on all parties - as is customary for a venture that involves four separate companies and a major studio distribution partner.
For the principal venture parties involved in this new structure, we all feel that this is a marriage in which the whole is greater than the sum of the parts. The consensus is that this is the “launch moment” for a truly significant entertainment company… and a move that will bring substantial value to all of our shareholders.
We wish to thank the company’s many patient, “long” shareholders, and we are excited that you will be rewarded for your loyalty and support as we have navigated a winning plan in this evolving media sector. The new management team includes some of the industry’s most respected and successful executives, and our future as a successful, independent studio and media distributor is bright. Watch for updates on this BLOG, including advance notification of Form 8 Information Statement Filings.
AI
