Replies to post #275927 on Hannover House Inc (HHSE)

[speckulater]

ORIGIN SETTLEMENT: Direct (Actual) Balance (plus $20k) NOT-Hundreds-of -Thousands-Sought









August 8, 2018

Quick update on ORIGIN matter

Greetings HHSE Friends & Followers - we are pleased to announce that the Origin lawsuit has been settled by mutual agreement on day two of the non-jury trial in Dallas. HHSE was combatting a claim by Origin Releasing (successor to Studio 3 Entertainment) which was seeking hundreds of thousands of dollars for what HHSE disputed as non-existent royalties for sales that did not occur or amounts were being sought that did not conform to the contract terms. This was the fourth producer lawsuit in the past two years that HHSE has disputed based on math and on contract terms. In each case, HHSE has either prevailed or settled for actual amounts due.

In 25-years, HHSE has had to deal with 11 lawsuits from producers out of 455 total titles - earning HHSE the distinction of being the least likely company to be sued by producers out of all full-service indie distributors in the North American marketplace.

http://hannoverhousemovies.blogspot.com/2018/08/quick-update-on-origin-matter.html





October 21, 2018

4). LEGAL ISSUES - ......... Additionally, the settlement made with Origin Releasing prior to the final court verdict in August, will be reaffirmed for the direct (actual) balance (plus $20k for legal costs) with a "super-judgment" amount held in abeyance as a velvet hammer to motivate HHSE's timely performance of the settlement (which will be paid off in monthly installments over the next ten months - or sooner at HHSE's discretion).

HHSE reminds longs that the stock-board xxxxxx have always been wrong with their claims that "the sky is falling" due to various legal matters over the the years... and reminds our shareholders that HHSE has always been proven 100% correct when disclosing that the occasional legal matters are not material threats to the company's ongoing operations or viability.

http://hannoverhousemovies.blogspot.com/2018/10/hhse-nitty-gritty-of-operational-legal.html











HHSE

[speckulater]

BLOG: Release Slate Rolls On!; "SLEEPER_CELL:_THE_ALGERIAN" January 1st










Friday, November 2, 2018

TERROR IS COMING TO AMERICA! Jan. 1st marks the DVD / BluRay and V.O.D. Release of "SLEEPER CELL: THE ALGERIAN"

Greetings HHSE Friends & Followers - while Parkinson and Shefte labor away on the HHSE corporate filings matters, the RELEASE SLATE ROLLS ON! Coming to home video and digital streaming platforms on Tuesday, January 1st, is the long-awaited release of the theatrical title, "THE ALGERIAN" - now rebranded for home video as: SLEEPER CELL: THE ALGERIAN. Watch for this title in Walmart, Target, Best Buy and other major retailers via HHSE / MEDALLION, Random Media / Sony / AEC as well as onto digital streaming via I-Tunes, Amazon and many more platforms. Netflix to follow in March... ONWARD!





http://hannoverhousemovies.blogspot.com/2018/11/terror-is-coming-to-america-jan-1st.html











HHSE

[speckulater]

BLOG: Myflix; 30+ Suppliers, 10,000 Films, 2,000+Hours Television-Programming

[color=red]










Wednesday, July 4, 2018

Myflix - Brand Positioning for the New Media Marketplace

Greetings HHSE Friends & Followers on this lovely Fourth of July mid-week holiday! As we move into third gear for our ramp-up of the MYFLIX streaming site and portal, it is helpful to look at the current marketplace to help determine our POSITIONING and PROSPECTS for the venture.

First of all, let's look at the economic benefits of this streaming venture, as compared to the "current" film distribution model for HHSE / Medallion (which has been heavily weighted towards physical DVD sales since our first hit DVD title - "I Gotta Go" - in 2003). When we place a title like BATTLECREEK or LOST IN THE PACIFIC into retail outlets, the company has to advance a significant amount of capital upfront for the manufacturing and freight costs to fill the retail shelf space allotted for a particular title. The larger the initial orders, the more that HHSE's capital is tied-up into inventories. While the wholesale pricing of most $14.95 suggested retail priced DVD titles is around $7, and the manufacturing and fulfillment for these is around $1 per unit, initial shipments of 30,000 units to retailers does tie-up a lot of working capital... and is often not returned into cash flow to the company for four or five months (i.e., allowing for the time to manufacture, ship, stock the shelves, determine net consumer purchase quantities, settle the balance of unsold returns, and finally have the retailer pay the net sales to the supplier).

At any given time, significant amounts of capital are being captured into fulfilling inventory for retailers, spread over four-to-five months of a multi-title release slate. It's expensive to be in the physical DVD and BluRay distribution business... and even more burdensome when a title is widely placed with retailers!

Both of these costs (manufacturing expenses and payment delays) are functionally eliminated with the V.O.D. streaming model. There is no cost for replicating and shipping DVDs and there's no multi-month "wait" for payment (V.O.D. transactions occur directly with consumers via credit card or bank debit, and are paid in DAYS to the streaming service sites, as opposed to MONTHS for traditional retail distribution). So, in this respect, a shift away from physical DVD / BluRay sales in favor of streaming revenues will significantly reduce the amount of operating capital tied-up at any given time for HHSE / Medallion. The company is basically moving AWAY from a cash-intensive model, and into a "fast-cash flow" delivery model. The company's cash flow IMPROVES under such a digital-streaming distribution model.

Some shareholders have asked, WHERE do we see the MyFlix brand falling within the scope of competitive options for the S.V.O.D. space? In order to best answer such a question, let's take a look at the principal Subscription-based entertainment streaming suppliers servicing North America:











NETFLIX is the 900-pound gorilla, with over $1-Billion in monthly subscription revenues. Amazon is a distant second place, with HULU in third, and HBO NOW targeting to close-in on $100-mm in monthly revenues by early 2019.

The comparable suppliers to MYFLIX are most likely viewed as ACORN.TV and FILMSTRUCK. Acorn has a mix of British TV programming, PBS and Urban features with an impressive 710,000 monthly subscriber based after less than 5-years of operations. FilmStruck launched just last October, and already has over 250,000 monthly subscribers generating about $2.8-million in monthly grosses. VRV is a label consolidator (not unlike MyFlix) and they represent a handful of specialty labels, primarily on a non-exclusive basis (MyFlix will have MANY of the same titles that VRV is offering). UFC and SCREAMBOX are specialty subscription channels (wrestling / horror).


Based on the MyFlix revenue-sharing model with our 30+ program supplier labels, the venture should be operating in a cash-flow-positive mode after only 15,000 Monthly Subscribers - which is a revenue level so far below these other principal SVOD sites that it boggles the mind to try to justify any forecasts which do not significantly exceed this threshold.


The variable costs impacting the MyFlix launch and growth is MARKETING and ADVERTISING. How does the company build brand-name visibility and awareness with consumers in a cost-effective manner? Obviously, the company is not looking to rely on word-of-mouth, but is also not planning to buy a multi-million-dollar Superbowl TV commercial. The company's MyFlix marketing plan is extensive, creative and is designed to deliver tens-of-millions of consumer impressions at a very cost-effective level. The launch campaign includes paid internet ads and banners onto high-traffic sites catering to film consumers... other major support activities include extensive "barter" web placement activities, social media outreach, taste-maker and influencer campaigns, traditional publicity support and viral-style videos designed to build the MyFlix brand.


After reaching the cash-flow-positive threshold, MyFlix will work to expand its subscriber and user base through ongoing marketing and advertising - as well as a robust program of NEW TITLES to be added at over 300 per month. In short order, HHSE believes the site has the elements and panache' to become an entertainment brand name and a hugely popular destination portal.

Hannover House has been operating continuously since 1993 - initially in the Book publishing business, then into DVD when the opportunity arose, then later into theatrical, international and into feature film production as conditions in the marketplace suggested that HHSE take steps to EVOLVE in order to THRIVE. Now, with the digital streaming frontier wide-open ahead of us - and 30+ supplier partners (collectively with over 10,000 feature films and 2,000+ hours of television programming) - MyFlix will be among the largest of libraries for consumers to browse and access through this delivery breakthrough of digital streaming media.

MyFlix is the main reason why there is wide-spread enthusiasm among smart and visionary investors who recognize what a huge deal this site has become... and what a massive turning point this represents in the long history of Hannover House.


Watch this space!









http://hannoverhousemovies.blogspot.com/2018/07/myflix-brand-positioning-for-new-media.html













HHSE

[speckulater]

BLOG-11/2: Release Slate Rolls On! "SLEEPER_CELL:_THE_ALGERIAN" January 1st










Friday, November 2, 2018

TERROR IS COMING TO AMERICA! Jan. 1st marks the DVD / BluRay and V.O.D. Release of "SLEEPER CELL: THE ALGERIAN"

Greetings HHSE Friends & Followers - while Parkinson and Shefte labor away on the HHSE corporate filings matters, the RELEASE SLATE ROLLS ON! Coming to home video and digital streaming platforms on Tuesday, January 1st, is the long-awaited release of the theatrical title, "THE ALGERIAN" - now rebranded for home video as: SLEEPER CELL: THE ALGERIAN. Watch for this title in Walmart, Target, Best Buy and other major retailers via HHSE / MEDALLION, Random Media / Sony / AEC as well as onto digital streaming via I-Tunes, Amazon and many more platforms. Netflix to follow in March... ONWARD!





http://hannoverhousemovies.blogspot.com/2018/11/terror-is-coming-to-america-jan-1st.html











HHSE

[speckulater]

BLOG-11/4: HHSE/MyFlix Key Events Outline & Business Model








Sunday, November 4, 2018

HHSE / MYFLIX - Outline of Key Events & Business Model

Greetings HHSE Friends & Followers - Several different versions of BLOG POSTS have been created in the past two weeks - as requested by Shareholders and "longs" wanting updates on a wide variety of issues. But, the operational distractions from current product shipments - combined with some management uncertainty about the ongoing medical status of Fred Shefte - created enough of a demand for focus as to distract from such corporate communications and shareholder updates.

With Fred Shefte now back at the office full-time, the company is able to redirect attentions towards the current issues and long-term direction. So, what are the current issues and long term goals? We will outline these as briefly as possible - as the detailed answers would comprise more than 60-pages of disclosures for a Form 10 or S-1 filing.

IMMEDIATE ISSUES

HHSE continues to service those titles that were produced, acquired or otherwise released in some manner under what management is now calling "the old business model." These title are what many in the industry would characterize as lower-tier Independent Releases - despite most having some level of theatrical visibility prior to home video or digital release.

The current titles include this TUESDAY's release of "GETTING GRACE" - which enjoyed theatrical exposure on more than 95-theatres in 35 of the top 40 markets this past Spring. Next up are the December home video releases of "RIDE UNITED" (Redbull Media House) and "AMERICA UNITED" (ABC Television), followed by a January 1st home video release of "SLEEPER CELL: THE ALGERIAN" and a February release of "THE LENNON REPORT." Three additional titles that had some level of theatrical release will follow in March, April and May - and these collectively represent "the end" of the older business model for HHSE to handle films with limited theatrical releases. Due to contractual obligations made to these producers, HHSE will follow-thru on the home video marketing of each, despite the longer term goal of phasing out of such titles.

SIDE NOTE: DVDs of "GETTING GRACE" can be pre-ordered on-line now via AMAZON or WALMART, and we encourage shareholders to help us achieve a strong week-one sales through the purchase of a copy!

AMAZON.com listing (currently at # 198 Best Seller):
https://www.amazon.com/Getting-Grace-Daniel-Roebuck/dp/B07GRLHJ79/ref=sr_1_1?ie=UTF8&qid=1541389057&sr=8-1&keywords=getting+grace+dvd

WALMART.com listing (currently WM's # 38 BEST SELLER!
https://www.walmart.com/ip/Getting-Grace-DVD/358583120


OTHER IMMEDIATE ISSUES include jump-starting some LEGAL responses that were put onto hold during Shefte's 7-week absence from the office. Specific items include: Stay of enforcement and re-opening of cases for JSJ and Bedrock; Catch-Up on structured settlement payments with CD Video, GDC, and Ackerman; Countersuit against Crimson and pre-Form 10 settlements with other significant creditors (including Graham, Andersons and Southwinds).

HHSE / MYFLIX ONGOING BUSINESS MODEL? With management having determined that the lower-end titles are cash-intensive, time-consuming and deliver only a very marginal revenue upside, the goal has been to identify specific areas within the entertainment industry where a company such as Hannover House can excel. For this reason, the company determined that the best strategy for maximizing revenues and bottom line results is a two-pronged approach: Major Films for HHSE and MyFlix as a one-stop digital streaming store.

By "Major Films" we mean that the company plans to release FOUR (4) features per year that have high-profile casts and which deserve (and get) broad theatrical distribution (500 or more locations). The first of these "Major Films" is a feature that's 95% completed at this time, and which HHSE plans to release in early MARCH, 2019. This title has NOT yet been announced.

It is management's belief that MOST of the titles comprising these four annual tent-poles will ultimately need to be PRODUCED by (or with the assistance of), HHSE in the Studio capacity. This is because at the film festival circuit level - generally speaking - any film of commercial merit has either been pre-sold to the major studios or ends up sparking a bidding for for the acquisition of rights (and HHSE cannot realistically expect to compete against the current acquisitions funding of Amazon, Netflix or the Major Studio specialty divisions). To get these "Major Films" - HHSE is likely going to have to act as a catalyst to spark the production. A good example of how this might occur is listed below (see "MELTDOWN").

With respect to MYFLIX - while the on-boarding of titles continues at full speed (now at 1,168 titles) - and acquisition of more studio supplier partners continues (now representing well in excess of 10,000 titles) - the actual consumer launch of the site does not look likely for the next few weeks. We are now going into the insane HOLIDAY season for ads and digital media, creating both a shortage of promotional inventories and a spike in costs. The cost for 30-second TV Ads on national cable (for instance), drops by more than 50% after January 1st... which also corresponds with terrific cold-weather, indoors-type seasonality (perfect for our MyFlix launch - and also corresponds with when we will surpass the 2,500 titles ON BOARDED level).

FINANCING FOR "MAJOR FILMS & MYFLIX" - Some shareholders have asked (rightfully so) how a company (that has been horribly cash-strapped from its stubborn focus on indie films for video release) anticipates financing this ambitious involvement in the "Major Films" as well as in the competitive world of launching a major MyFlix site?

Here's how:

1). FORM 10 REGISTRATION - The long-awaited filing of the company's registration statement is the first step in the company's overall new launch. Large funds and investors that have been hesitant (or prohibited) from supporting HHSE as a Pinksheet stock will now be able to invest in HHSE shares. Management anticipates that the act of filing the Form 10 could (and should) result in a PPS of $.03 or higher.

2). P&A FUNDS SECURED AGAINST VIDEO / V.O.D. - HHSE has been working with a proven P&A funder for a structure which provides substantial (multi-million dollar) traunches of theatrical release support for qualifying titles under a major studio Video / V.O.D. assignment. HHSE will enjoy the benefits (and upfront fees) from the marketing of titles under this P&A structure - as well as earned sales fees from theatrical settlements. Furthermore, the assignment of video rights to the major studio partner relieves HHSE of the need for substantial video staff and manufacturing funds.

3). CO-PRODUCTION PARTNERS, INTERNATIONAL PRE-SALES, INCENTIVES AND "GAP" - With respect to the facilitation of a major feature film - such as "MELTDOWN" - the assembly of financing for this $10-mm production in many ways is easier than raising $500,000 for a small indie production. Why? Well, first of all, having three major stars in "MELTDOWN" provides pre-sale interest for the receipt of bankable licensing agreements. Next, the higher stature also encourages greater support from State Incentive programs, and finally the existence of significant pre-sales can be leveraged to obtain what is known as "Gap" financing in the entertainment industry (e.g., a bank loan for "the gap still needed" - secured against the unsold territories). We also may bring in "co-production partners" for a portion of financing or in-kind services, as a variation on the pre-sale model.

For Major feature films structured in this manner - in which HHSE has essentially "packaged" the financing elements and performed the Executive Producer or Studio function - there will be significant fees paid to HHSE upfront... as well as certain assignable allocated overhead expenses. Additionally, after completion of the production, HHSE will launch the films to theatres under the P&A structure described above - also generating operating overhead through marketing fees, booking services and sales settlements.

4). S-1 REGISTRATION - HHSE has been in discussions with three significant parties that have expressed support of buying HHSE shares under a S-1 Shelf Registration (simultaneous with the Form 10, or almost immediately thereafter). As presently envisioned, the S-1 would be launched in January with a total potential sale of up to 90-mm HHSE shares made available, with a base price anticipated in the $.045 range, and going all the way up to $.10 for the final traunch of shares. HHSE anticipates raising about $4.5-mm in direct operating capital - while only diluting the total A/S by 10% or less. These direct funds will provide marketing support for MyFlix - as well as cash-flow flexibility for assisting with the development of the tent-pole Major Films and other ongoing operations. The anticipated buyers of the S-1 offering are long-term, strategic partners, and are not expected to sell any of their shares in the first year or two. The structure of the S-1 incentivizes earlier subscribers, as the price per share increases as the inventory of S-1 shares is diminished. The base price of the first traunch of S-1 shares is being established to be at a level estimated to start at 150% of the VWAP of the HHSE shares - which means that these new shareholders are buying equity at a significant premium "above" market.

As stated above - the more specific details for each of these major activities for HHSE requires more than a summary blog. But the information above provides a good outline of where we are, and where we are going.

Yes, it's GREAT that a movie like "GETTING GRACE" is listed as a BEST SELLER for Walmart.com... who knows? Maybe it will hold its shelf placements through Black Friday (as per the HHSE marketing plan), and ultimately deliver a wonderful Q4 for HHSE? But long-term, it's the expectation that FOUR "Major Films" could deliver $100-mm in revenues... as can MYFLIX... that is the driving force for this well-planned reinvention of the company's operating model!

STAY TUNED!





The GETTING GRACE international sales activities launched this week at the AMERICAN FILM MARKET in Santa Monica, CA. To better conform to international packaging tastes, a different key art campaign was developed.


http://hannoverhousemovies.blogspot.com/2018/11/hhse-myflix-outline-of-key-events.html









HHSE

[speckulater]

BLOG-11/4 (With-Updates): HHSE/MyFlix Key-Events Outline & Business Model




FYI
Additions to the BLOG were made after it was originally written. It consists of 2 sentences. They are both highlighted in red below. Notify me of any errors.








Sunday, November 4, 2018

HHSE / MYFLIX - Outline of Key Events & Business Model

Greetings HHSE Friends & Followers - Several different versions of BLOG POSTS have been created in the past two weeks - as requested by Shareholders and "longs" wanting updates on a wide variety of issues. But, the operational distractions from current product shipments - combined with some management uncertainty about the ongoing medical status of Fred Shefte - created enough of a demand for focus as to distract from such corporate communications and shareholder updates.

With Fred Shefte now back at the office full-time, the company is able to redirect attentions towards the current issues and long-term direction. So, what are the current issues and long term goals? We will outline these as briefly as possible - as the detailed answers would comprise more than 60-pages of disclosures for a Form 10 or S-1 filing.

IMMEDIATE ISSUES

HHSE continues to service those titles that were produced, acquired or otherwise released in some manner under what management is now calling "the old business model." These title are what many in the industry would characterize as lower-tier Independent Releases - despite most having some level of theatrical visibility prior to home video or digital release.

The current titles include this TUESDAY's release of "GETTING GRACE" - which enjoyed theatrical exposure on more than 95-theatres in 35 of the top 40 markets this past Spring. Next up are the December home video releases of "RIDE UNITED" (Redbull Media House) and "AMERICA UNITED" (ABC Television), followed by a January 1st home video release of "SLEEPER CELL: THE ALGERIAN" and a February release of "THE LENNON REPORT." Three additional titles that had some level of theatrical release will follow in March, April and May - and these collectively represent "the end" of the older business model for HHSE to handle films with limited theatrical releases. Due to contractual obligations made to these producers, HHSE will follow-thru on the home video marketing of each, despite the longer term goal of phasing out of such titles.

SIDE NOTE: DVDs of "GETTING GRACE" can be pre-ordered on-line now via AMAZON or WALMART, and we encourage shareholders to help us achieve a strong week-one sales through the purchase of a copy!

AMAZON.com listing (currently at # 198 Best Seller):
https://www.amazon.com/Getting-Grace-Daniel-Roebuck/dp/B07GRLHJ79/ref=sr_1_1?ie=UTF8&qid=1541389057&sr=8-1&keywords=getting+grace+dvd

WALMART.com listing (currently WM's # 38 BEST SELLER!
https://www.walmart.com/ip/Getting-Grace-DVD/358583120


OTHER IMMEDIATE ISSUES include jump-starting some LEGAL responses that were put onto hold during Shefte's 7-week absence from the office. Specific items include: Stay of enforcement and re-opening of cases for JSJ and Bedrock; Catch-Up on structured settlement payments with CD Video, GDC, and Ackerman; Countersuit against Crimson and pre-Form 10 settlements with other significant creditors (including Graham, Andersons and Southwinds).

HHSE / MYFLIX ONGOING BUSINESS MODEL? With management having determined that the lower-end titles are cash-intensive, time-consuming and deliver only a very marginal revenue upside, the goal has been to identify specific areas within the entertainment industry where a company such as Hannover House can excel. For this reason, the company determined that the best strategy for maximizing revenues and bottom line results is a two-pronged approach: Major Films for HHSE and MyFlix as a one-stop digital streaming store.

By "Major Films" we mean that the company plans to release FOUR (4) features per year that have high-profile casts and which deserve (and get) broad theatrical distribution (500 or more locations). The first of these "Major Films" is a feature that's 95% completed at this time, and which HHSE plans to release in early MARCH, 2019. This title has NOT yet been announced.

It is management's belief that MOST of the titles comprising these four annual tent-poles will ultimately need to be PRODUCED by (or with the assistance of), HHSE in the Studio capacity. This is because at the film festival circuit level - generally speaking - any film of commercial merit has either been pre-sold to the major studios or ends up sparking a bidding for for the acquisition of rights (and HHSE cannot realistically expect to compete against the current acquisitions funding of Amazon, Netflix or the Major Studio specialty divisions). To get these "Major Films" - HHSE is likely going to have to act as a catalyst to spark the production. A good example of how this might occur is listed below (see "MELTDOWN").

With respect to MYFLIX - while the on-boarding of titles continues at full speed (now at 1,168 titles) - and acquisition of more studio supplier partners continues (now representing well in excess of 10,000 titles) - the actual consumer launch of the site does not look likely for the next few weeks. We are now going into the insane HOLIDAY season for ads and digital media, creating both a shortage of promotional inventories and a spike in costs. The cost for 30-second TV Ads on national cable (for instance), drops by more than 50% after January 1st... which also corresponds with terrific cold-weather, indoors-type seasonality (perfect for our MyFlix launch - and also corresponds with when we will surpass the 2,500 titles ON BOARDED level).

FINANCING FOR "MAJOR FILMS & MYFLIX" - Some shareholders have asked (rightfully so) how a company (that has been horribly cash-strapped from its stubborn focus on indie films for video release) anticipates financing this ambitious involvement in the "Major Films" as well as in the competitive world of launching a major MyFlix site?

Here's how:

1). FORM 10 REGISTRATION - The long-awaited filing of the company's registration statement is the first step in the company's overall new launch. Large funds and investors that have been hesitant (or prohibited) from supporting HHSE as a Pinksheet stock will now be able to invest in HHSE shares. Management anticipates that the act of filing the Form 10 could (and should) result in a PPS of $.03 or higher. The Form 10 may be filed in the next few weeks, and the impact to the HHSE share price might be seen immediately - even though the S.E.C. has 60-days to provide "comments" requiring the issuer's response.

2). P&A FUNDS SECURED AGAINST VIDEO / V.O.D. - HHSE has been working with a proven P&A funder for a structure which provides substantial (multi-million dollar) traunches of theatrical release support for qualifying titles under a major studio Video / V.O.D. assignment. HHSE will enjoy the benefits (and upfront fees) from the marketing of titles under this P&A structure - as well as earned sales fees from theatrical settlements. Furthermore, the assignment of video rights to the major studio partner relieves HHSE of the need for substantial video staff and manufacturing funds.

3). CO-PRODUCTION PARTNERS, INTERNATIONAL PRE-SALES, INCENTIVES AND "GAP" - With respect to the facilitation of a major feature film - such as "MELTDOWN" - the assembly of financing for this $10-mm production in many ways is easier than raising $500,000 for a small indie production. Why? Well, first of all, having three major stars in "MELTDOWN" provides pre-sale interest for the receipt of bankable licensing agreements. Next, the higher stature also encourages greater support from State Incentive programs, and finally the existence of significant pre-sales can be leveraged to obtain what is known as "Gap" financing in the entertainment industry (e.g., a bank loan for "the gap still needed" - secured against the unsold territories). We also may bring in "co-production partners" for a portion of financing or in-kind services, as a variation on the pre-sale model.

For Major feature films structured in this manner - in which HHSE has essentially "packaged" the financing elements and performed the Executive Producer or Studio function - there will be significant fees paid to HHSE upfront... as well as certain assignable allocated overhead expenses. Additionally, after completion of the production, HHSE will launch the films to theatres under the P&A structure described above - also generating operating overhead through marketing fees, booking services and sales settlements.

4). S-1 REGISTRATION - HHSE has been in discussions with three significant parties that have expressed support of buying HHSE shares under a S-1 Shelf Registration (simultaneous with the Form 10, or almost immediately thereafter). As presently envisioned, the S-1 would be launched in January with a total potential sale of up to 90-mm HHSE shares made available, with a base price anticipated in the $.045 range, and going all the way up to $.10 for the final traunch of shares. HHSE anticipates raising about $4.5-mm in direct operating capital - while only diluting the total A/S by 10% or less. These direct funds will provide marketing support for MyFlix - as well as cash-flow flexibility for assisting with the development of the tent-pole Major Films and other ongoing operations. The anticipated buyers of the S-1 offering are long-term, strategic partners, and are not expected to sell any of their shares in the first year or two. The structure of the S-1 incentivizes earlier subscribers, as the price per share increases as the inventory of S-1 shares is diminished. The base price of the first traunch of S-1 shares is being established to be at a level estimated to start at 150% of the VWAP of the HHSE shares - which means that these new shareholders are buying equity at a significant premium "above" market. The S-1 Registration will be filed shortly after the Form 10, as the company will await any initial feedback and comments to the registration statement.

As stated above - the more specific details for each of these major activities for HHSE requires more than a summary blog. But the information above provides a good outline of where we are, and where we are going.

Yes, it's GREAT that a movie like "GETTING GRACE" is listed as a BEST SELLER for Walmart.com... who knows? Maybe it will hold its shelf placements through Black Friday (as per the HHSE marketing plan), and ultimately deliver a wonderful Q4 for HHSE? But long-term, it's the expectation that FOUR "Major Films" could deliver $100-mm in revenues... as can MYFLIX... that is the driving force for this well-planned reinvention of the company's operating model!

STAY TUNED!



---------------------------------------------------------------------------

The GETTING GRACE international sales activities launched this week at the AMERICAN FILM MARKET in Santa Monica, CA. To better conform to international packaging tastes, a different key art campaign was developed.


http://hannoverhousemovies.blogspot.com/2018/11/hhse-myflix-outline-of-key-events.html








HHSE