Well, it appears everything is exactly on track as we have been told before ... thanks Eric for the truth and not rumours and insinuation. I am perfectly OK with calling a spade a spade and if Eric ever lies or misleads, I promise to be the first to call him on it. He hasn't done it yet.
Greetings -- I'm writing to a group of you in bulk today due to my tight schedule here in Los Angeles between corporate meetings. As all of you know, "Rainmaker" posted some scathing criticisms today about TDGI activities, and this probably contributed to a significant sell-off in the stock. I understand also that someone moderating "i-hub" resigned from that post and may have also dumped out of their shares, creating an imbalance between sellers and buyers and driving down the stock.
I'm somewhat limited from what I can disclose regarding corporate activities underway. But I'll tell you what I can, and I'll respond to specific criticisms that were posted by "Rainmaker" and forwarded to me by Rob (email removed by GJ, this was my only edit).
First of all, of the various deals currently on the table for TDGI, none of them is a "Ninja Split" as described by "Rainmaker" (I had never even heard such a term); Next, the motivation to explore a partial asset sale is to enhance shareholder value, not to fraudulently convey assets away from TDGI; Also, there is no issue or any problems in making TDGI a fully-reporting entity, and this activity is underway (regardless of whether or not any other corporate opportunities are pursued). There has been a lot of chatter about Fotis Georgiadis and his off-balance sheet investment for the acquisition of "Twelve." I do not know any details of his prior activities at TDGI, but if the claims are as accurate as the claims that "Rainmaker" is now making about TDGI, I wouldn't place much value or credibility in such criticisms.
A few specific questions were raised:
1). Why don't the financials reflect the impact of the Stock Purchase Agreement? Answer: they do. $300,000 in TDGI debt was removed from the payables; $300,000 in cash payments were received by the company as of 3-31-10; the Contracts Receivable listing on the Balance Sheet shows a balance of $1,200,000 in term payments as still being due.
2). What's going on with "The Countess", "Moebius Strip" and "The Wild Hunt?" Answer (and ultra brief, I'm sorry, but I'm time challenged today): all are on our schedule for theatrical release in 2010, but have been scheduled to benefit from the wider release titles ("Twelve" and "HappyThankYouMorePlease") as these items will enhance the company's profile, and enable us to book better theaters, get better trailer and poster placement and better settlement terms with the exhibitors. The "locomotive" effect...
3). "Rainmaker" said something about 16 titles at Cannes never happening, what's that all about? Answer: Apparently, "Rainmaker" is really reaching for something here. In May of 2009, I attended the Cannes Film Festival as a representative of Empire Film Group, Inc. At that time, Empire was attempting to purchase Hannover House, and the viability of such a merger would be dependent upon the combined companies having some commercial titles to release. During Cannes, at the instruction of Empire, I negotiated and signed deal memos for the USA Distribution rights to 16 films, of which, Empire actually "announced" three ("The Countess", "Secret of Kells", and "As God Commands"). Fortunately (for the producers) the other titles were never announced. The reason this is fortunate is that Empire defaulted on every single deal, including the deal to purchase Hannover House. So yes, at a moment in time 13 months ago, there were 16 titles slated to go to Empire Film Group (not to Hannover House). It should be noted that Hannover House has actually preserved our relationship with every one of these "wronged" producers, and in fact, we have since signed up for Hannover House five of the titles (the cream-of-the-crop). We "almost" had "Secret of Kells" for USA Home Video, and in fact, had placed $100,000 into an escrow account as the producer's attorney suggested. But ultimately, other aspects of the deal became unattrractive to both parties (call us crazy, but we simply will not proceed on a deal that doesn't pay Hannover / TDGI a fair distribution fee... we're not in this for the sheer pleasure of work, we're in it to make money!).
4). "Rainmaker" made some bs comments about the Hannover House YouTube Channel. What's the story? Answer: we have a YouTube Channel, but haven't activitated movies on it yet for a very significant reason. There are four (yes, 4!), major "Video-On-Demand" offers for the company to pursue at present, all of which have come about "post-Sundance" and are due to our two larger titles, "Twelve" and "HappyThankYouMorePlease." Without disclosing too much, I can say that the locomotive value of the two bigger titles is creating a multi-fold benefit to "the smaller titles" that otherwise would be generating a few hundred bucks each via YouTube. If we break the virginal status of these titles for V.O.D., then they become ineligible for the much more lucrative "big V.O.D." deals that we're negotiating. If, for unfathomable reasons, we don't close one of the four big V.O.D. ventures, we can always go back and upload our titles to YouTube and make some pocket change. The films are already compressed and digitized, ready to go. But placing them now for a cumulative few thousand bucks, seems very short-sighted compared to the value of adding them to a big V.O.D. venture. Stay tuned, can't say more.
5). Why don't you release the details of the Ninja Merger? Answer: Huh? We don't have any sort of merger even on the table as one of the various opportunities for the company, and we have announced no plans or even the intent to do more than investigate opportunities! There are some very interesting opportunities, for sure. As previously stated, if these look to clearly be in the best interests of the TDGI shareholders, we will present them prior to taking action. Meanwhile, tell these bs "shorters" to stop with the bizarre theories and outright lies.
I wish I had more time, but I must return to my "day job" of getting "Twelve" ready for release. I'm heading over to Technicolor Hollywood now to approve the trailer before we print 2,000+ film copies for release to theaters (many locations of "Twilight: Eclipse" are scheduled to show our trailer beginning June 30!). I also wish I could tell you about tomorrow's meetings, but that would reveal more than I can disclose. I think it's safe, however, to tell you that it has nothing to do with Fotis Georgiadis or any other the prior manager or principals of TDGI! Still, there are those who benefit from ignoring reality, those who "make rain" on otherwise sunny days!
Best Regards,
ERIC PARKINSON, C.E.O.
Hannover House / TDGI
AI
