From the blog: 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. So yes, those shares could hit the market in a year, or two...however, the impact of the cash infusion on the balance sheet would be immediate. The market looks forward, so if a major production is started, the market takes that into account. As far as the lawsuits, those inflated numbers we hear are meritless. They will disappear very quickly. Tiny movie producers have a bad habit of thinking that their movies should make a lot more than the market decides. HHSE is not responsible for what those movies make, and they have that clearly stated in their contracts. Wishful thinking doesn't stand up in court.
It all starts with the filing of the Form 10. Then the S1 filing. Remember that those large investors have friends. They don't come into a "ground floor" stock alone.
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.
