Q & A In Bullet Points
The Q & A was awesome, but so large hard to remember, maybe this will help.
Investors Questions & Responses By CEO Eric Parkinson
1.) Book Releases coming?
* Have 5 Books not yet announced.
* Announcements coming after Distribution Agreement ends in August.
2.) How many theaters for Twelve?
* About 450 theaters.
3.) Will big news be out by end of June?
* There are actually 4 significant pieces of "news".
* Will be back in L.A. next week, we will press to make the "joint announcement".
4.) Current plans for Racing Dreams?
* We've "regrouped" and refocused the campaign.
* Focus on "documentary friendly" cinemas like Landmark Theaters.
* Will open in New York, then L.A.
* Still a reasonable goal of 100-total locations for "Racing Dreams" by September.
5.) When will Audited Financials be done?
* Hogan Taylor is performing full year-end audits for 2008 and for 2009.
* Plus reviewed quarterly reports for 3-31-10 and 6-30-10.
* Hate to predict, but hopefully July 16.
6.) When will we uplist to OTCBB or AMEX?
* Audit activities being done with intention to become fully SEC Compliant, timeframe unknown to Uplist.
7.) When will Audits be Filed with SEC?
* Will be Filed day after completion on OTC Pinksheets.
* Counsel will advise other requirements.
8.) What is fair stock price?
* TDGI should be .13 to .15 per share.
* Incoming Revenue & Profits should bring higher price.
9.) Have all 200M shares been given to the investors?
* We were satisfied with the payment schedule, we have already released the 200-mm shares.
10.) How did the press day for twelve go?
* The "official Press Media Day" for the film in New York City is July 28.
* We have confirmations from all major entertainment media to attend and cover interviews with our cast that day.
* That morning starts with 50-Cent on "THE VIEW"
* 50-Cent on "LETTERMAN"
* Official movie premiere at the Landmark Sunshine Theater in New York City.
* Major after-party event cosponsored by Andrew Safir Promotions, MTV and Cosmopolitan.
11.) Why delay on Audited Financials?
* No problems, other than the voluminous review work involved with 2-1/2 years of audits and reviews.
12.) Are you getting distribution rights to the new Michael Jackson movie from Sony?
* No, we're not dealing with any new Michael Jackson projects.
13.) Any plans for a corporate shareholder conference call in the near future?
* Maybe after Audits and Announcements.
* We have, however, planned to have a shareholder "discussion" call set up, as Fred and I want to obtain as close to 100% shareholder consensus as reasonably possible, before closing one of the four ventures.
14.) Any plans to bring new, large investors to the table?
* No interest with Market Makers.
* A wiser strategy is pursuing vendor credit lines (with liens against receivables), and pursuing private investors for "off-balance-sheet" ventures for bigger title acquisitions (wherein we provide the outside investors with a percentage of Hannover's distribution fees for specific titles, and achieve this without having to issue new shares and dilute the stock).
15.) The big deal, are you planning on holding a conference call to explain the intricacies & address Q&A?
* Again "the big deal" is actually four ventures.
* Part of our news will be discussed with shareholders prior to implementation.
16.) How many copies of the book Made in the USA have you sold so far?
* We sold our initial pressing of 40,000 copies.
* Major legislative initiative with the U.S. Senate move to July Session.
* We believe that the national media coverage likely to result from the news of a bill in Congress will create a major spike in sales for "Made in the USA" and will likely necessitate a reprinting.
17.) Are you able to comment if Tom Ortenberg is related to the deal?
* He will be available to continue on with us as a consultant beyond September, if we so elect.
* He has also indicated his receptivity to joining the company on an exclusive basis.
* But he has expressed similar sentiments to stepping in at MGM.
* So his status is in flux.
18.) How can one see all comments on the Hannover House Facebook page?
* I will refer this question to Susannah Patton.
19.) You mention two new releases for the fall in addition to four announced.
* The unannounced titles have not yet been announced, they are major titles.
20.) How much capital does Hannover currently have at its disposal to complete future negative pickups? What sources of future financing are contemplated?
* We're not doing "negative pick-up" deals.
* Our financing sources for acquisitions include cash flow from current and upcoming releases.
* The ongoing availability of off-balance-sheet private investors for specific title acquisitions.
21.) How does Hannover finance its P&A?
* Of the $2.2-million being spent on "TWELVE," approx. $1-mm is from cash (mostly from the stock venture) and about $1.2-mm is from vendor credit lines (with the broadcast agency, the newspapers and the labs). As we collect the revenues from "TWELVE," we'll use receipts to pay off (and "replenish") our vendor credit lines, and we'll recycle the $1-mm or so in cash expenditures into future releases.
* Basically, we'll keep rebooting the same $2-mm to $2.5-mm every six to eight weeks.
* If we need more funds, then we have the option of investing some of our distribution fee income, or accessing off-balance sheet private participant funds.
22.) Why did Fotis (of old TDGI) receive a presentation / Exec Producer credit on Twelve? Is he involved with the company going forward?
* Fotis provided some Funding for Twelve. His "deal" was that he would get a shared presentation credit.
* Fotis is no longer involved with TDGI management or the Board.
23.) What firms performed the library valuations on TDGI? Are their valuations in line with the value presented in Hannover's unaudited balance sheet?
* I will need to check if this is information to be disclosed.
* One was a former library valuator at Houlihan Lokey Howard & Zukin.
24.) Do you contemplate resetting the company's ticker to reflect the name and business of the company?
* It's been discussed as an option, but for now, it's okay to stay as TDGI.
25.) If TDGI is moved to another exchange such as OTCBB or other, do you think a reverse split will be in the cards to get the PPS higher?
* Doing a reverse split to get the PPS higher is not being considered.
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