4). S-1 REGISTRATION - HHSE has been in discussions with three significant parties that have expressed support of buying HHSE shares under a S-1 Shelf Registration (simultaneous with the Form 10, or almost immediately thereafter). As presently envisioned, the S-1 would be launched in January with a total potential sale of up to 90-mm HHSE shares made available, with a base price anticipated in the $.045 range, and going all the way up to $.10 for the final traunch of shares. HHSE anticipates raising about $4.5-mm in direct operating capital - while only diluting the total A/S by 10% or less. These direct funds will provide marketing support for MyFlix - as well as cash-flow flexibility for assisting with the development of the tent-pole Major Films and other ongoing operations. The anticipated buyers of the S-1 offering are long-term, strategic partners, and are not expected to sell any of their shares in the first year or two. The structure of the S-1 incentivizes earlier subscribers, as the price per share increases as the inventory of S-1 shares is diminished. The base price of the first traunch of S-1 shares is being established to be at a level estimated to start at 150% of the VWAP of the HHSE shares - which means that these new shareholders are buying equity at a significant premium "above" market. The S-1 Registration will be filed shortly after the Form 10, as the company will await any initial feedback and comments to the registration statement.
As stated above - the more specific details for each of these major activities for HHSE requires more than a summary blog. But the information above provides a good outline of where we are, and where we are going.
Yes, it's GREAT that a movie like "GETTING GRACE" is listed as a BEST SELLER for Walmart.com... who knows? Maybe it will hold its shelf placements through Black Friday (as per the HHSE marketing plan), and ultimately deliver a wonderful Q4 for HHSE? But long-term, it's the expectation that FOUR "Major Films" could deliver $100-mm in revenues... as can MYFLIX... that is the driving force for this well-planned reinvention of the company's operating model!
STAY TUNED!
