Legal Settlement Removes Key Registration Obstacle
Press Release | 11/05/2021
A settlement agreement in the Lewin New York Default matter has been reached and signed, removing the largest and most onerous financial obstacles to the company's registration process, announced Hannover House, Inc. today (OTC: HHSE).
The Lewin dispute addressed the theatrical releasing costs for the Oct. 31, 2015 theatrical release of "Dancin' It's On," which were provided by New York-based private investor Bruce Lewin. The audience and critical response to the film was poor, and the film's subsequent DVD release did not net any cash flows as a result of the bankruptcy of subdistributor Our Alchemy, LLC and Anderson Digital. Lewin sued Hannover House for repayment of $1.3-million in releasing costs, and won a default judgment when the HHSE answer was struck due to non-delivery of discovery items. With accrued interest, the Lewin default amount had grown to more than $2-million dollars and posed a "going concern" threat to the HHSE Form 10 Registration.
The terms of the settlement agreement are to be mutually confidential, but represent a substantial discount to the judgment amount.
Hannover is addressing two additional "default" judgments, and expects to prevail in setting those matters aside or otherwise resolving.
Filing of the Form 10 Registration is a long-awaited step for Hannover House, as it clears the path for a S1 Offering to support the launch of the company's multi-studio streaming service, "MyFlix."
"There is a lot of enthusiasm for the MyFlix concept," said HHSE C.E.O. Eric Parkinson. "The streaming medium is creating a paradigm shift in how consumers watch programming, and this has fueled a gold-rush for services and programming suppliers. We have been approached by quite a few major investors and funding groups expressing interest in the S1 Registration, and we feel that once we begin the solicitation of our S1, that a substantial amount of the offering will be quickly subscribed. Being fully registered and reporting with the S.E.C. means that we do not have to deal with the various state regulations that impact companies offering unregistered securities."
