Hannover House Inc (HHSE)

[speckulater]

CEASE & DESIST LETTER: EXPUNGED AS ERRONEOUS

Response: On October 8, 2019, Company was advised of an order from the Arkansas Securities Commission regarding their concerns regarding the issuance of a convertible debt instrument to JSJ Investments, Inc. in 2014, which transaction was not registered with the Arkansas Securities
Commission. Company was ordered to not issue any convertible debt instruments from within the State of Arkansas if such instruments are not registered within the State of Arkansas Securities Commission. Although the Arkansas letter purported to cite a violation, Company was not at that
time, nor ever since, found to have actually violated any such State securities rules, and a response call to the Arkansas Securities Department resulted in their confirmation that the incident cited in the letter did not involve Arkansas entities and therefore Arkansas jurisdiction. The company is seeking
to have the claims made in this letter removed and expunged as erroneous. The initial step of the appeal process occurred in late November 2019, at which time, a representative of the Arkansas Dept. of Securities again concurred that the transaction in question was from an out-of-state issuer and was not with an Arkansas resident or Arkansas entity, and therefore not subject to Arkansas Laws. A December 2020 zoom call was rescheduled to accommodate counsel’s availability. There will be an additional appeal process hearing at such time that the COVID-19 pandemic shut-down of courthouses and non-essential hearings has been lifted. Based upon prior calls with the Arkansas Securities Commission and with appropriate counsel, Company will present the appropriate evidence at this upcoming hearing that Company’s counsel believes should result in a dismissal and expungement of the Arkansas C&D order. As of the filing of this quarterly report, there has been no meeting scheduled for a hearing and review, dismissal and expungement of this claim against HHSE; the company will prioritize this dispute following the completion of registration actions.

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https://www.otcmarkets.com/otcapi/company/financial-report/343379/content