Hannover House Inc (HHSE)

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Off balance sheet fund

It’s a pretty onerous task to transcribe the meeting, but here is the part about the $5 million fund. (I’ll post the parts about All’s Faire in Love soon, including the question you were referring to in your post #92781.)

The words in italics were emphasized by Eric.

ERIC. Somebody is asking to “Please discuss the $5 million revolving line of credit mentioned in the PR.” Actually what we mentioned in the PR is that we are pursuing off-balance-sheet line of credit that would be up to $5 million and I don’t even think line of credit is the proper term, I don’t think we used the term line of credit because that implies that it is payable back, which really ______ – what we’re attempting to structure, and I talked to the people just yesterday about it, is an off-balance-sheet fund where a group of people or company puts up the money to acquire and release the films, and we get a distribution fee. It becomes risk-free for us and therefore we think that’s an attractive way for us to release more films.

FRED. A revolving fund, whether it be a line of credit or otherwise, is only one of the ways that we’re talking to people about going forward with financing future projects.