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.
