Replies to post #290442 on Hannover House Inc (HHSE)

[pba]

HHSE has a Book Value of $0.04.

[pba]

HHSE Uplist to OTC:QB (get off the Pinks) with a broader base of more sophisticated and knowledgeable investors.

[pba]

Stated in OTCMarkets Document the new HHSE Film Library Evaluation equals at least $28,000,000). https://investorshub.advfn.com/boards/read_msg.aspx?message_id=145447965

[speckulater]

BLOG-6/14: Bullish On HHSE; CEO Explains-Why To Investors/Shareholders









Friday, June 14, 2019


Investors are asking about Hannover House....





Greetings HHSE Friends & Followers - Last week (during the WALMART Annual Shareholder's Meetings in N.W. Arkansas), HHSE C.E.O. ERIC PARKINSON was asked by quite a few institutional-level investors and funds to provide an update on "what's happening at HHSE..." and more specifically "... is this a GOOD time to accumulate shares?"

As per S.E.C. guidelines, it is not possible to provide a manager's analysis or prognostication to a handful of investors - unless this same information is provided simultaneously via a public forum or disclosure to ALL current and prospective investors. Accordingly, this blog is designed to provide a manager's level analysis and to answer the questions of "what's happening at HHSE" and "is this a GOOD time to accumulate shares?"

These are both relevant and timely questions.

Over the past few years, the Hannover House blogsite (on which this post appears), has concentrated primarily on writing about all of the great-and-amazing things that the company is endeavoring to achieve. So, for those not previously following this Blog, here's a quick bullet point of why many investors and shareholders are bullish on HHSE:

1). HANNOVER HOUSE HAS LONGEVITY - AND IS MULTI-FACETED. Formed in 1993 and operating continuously now for 26-years, Hannover House has longevity and stability at an unprecedented level for an OTC Pinksheets company. Additionally, the company has shown resilience in evolving or refocusing its business models to accommodate the changing media marketplace (from books, to DVDs, to Theatrical, to International and now onto Streaming).





2). HANNOVER'S NEW MODEL FOR PURSUING "HIGH-PROFILE" FEATURES - The maturing independent film marketplace now prefers bigger-budgeted films, with top-name stars as opposed to the early DVD years which made micro-budget programming surprisingly profitable. This new model of bigger films is beneficial to Hannover House because it provides operating liquidity and a tremendous "upside potential" without downside risk (as the films are funded through presales and incentives). Additionally, these films become part of a permanent asset base for HHSE.





3). HANNOVER'S VENTURE FOR MyFLIX COULD BE ENORMOUS - The in-home digital streaming model is rapidly becoming the dominant form of home-entertainment delivery. Hannover House has beren contracted to create and launch a multi-studio streaming site called MyFlix, which combines over 12,000 titles of programming from over 40-supplier studios into a one-stop digital superstore. Think of MyFlix as the "Walmart" of digital streaming. Hannover has the option to acquire MyFlix (for $1) after a successful launch and the satisfaction of corporate actions.






4). HANNOVER'S PENDING S.E.C. REGISTRATION FILING - For the past nine years, Hannover House has been operating as an OTC Pinksheets company. Many investors and funds are prohibited by law or self-governance from investing in "Pinksheet" stocks. Accordingly, the current registration with the S.E.C. (via Form 10), is expected to significantly increase shareholder access to HHSE, and as a result, is expected to have an appreciation impact to the stock value. The HHSE shares would be up-listed to eithe OTC: QB or OTC: QX. Hannover House is also filing a post Form 10 "S-1 Registration Statement" designed to generate up to $8-mm in operating cash for the company via the direct sale of stock shares at between $.03 and $.08 each... making the current market pricing of the stock ($.0115 approx.) into a bargain opportunity.

5). HANNOVER'S STOCK "PUBLIC FLOAT" IS TIGHTLY CONTROLLED - The vast majority of the HHSE "public-float" stock (over 85%) is controlled by about thirty key shareholders that have made the long-term commitment to hold their shares and to support a move of the stock past the $.10 / share level (or higher). These are sophisticated and substantial traders and investors who recognize that the UPSIDE RUN has not yet happened for Hannover House - and that any one of the key corporate endeavors could trigger an explosive appreciation in stock interest and pricing. This tight control and shareholder commitment has made the stock price very STABLE over the past nine years. While there have been some short-term "peaks" in pricing (and a few, short-term dips), the year-over-year AVERAGE stock price without any of these significant corporate benchmarks has averaged between $.011 and $.028 / share... putting the current stock pricing at the bottom end of the company's historic average trading ranges.

IN SUMMARY...

* The current elimination of balance sheet debts will have a significant and positive impact to the company.

* The registration and up-list opportunities this opens for HHSE will substantially increase shareholder access to the stock.

* Four feature productions are providing overhead and cash flow to Hannover House -and three of these films offer an upside measured (literally) into the tens-of-millions of dollars as being both realistic and obtainable possibilities.

* The MyFlix website and streaming APP has over 40-studio supplier partners (including titles from THREE of the Major Studios). If a site such as Accorn.TV is currently generating over $80-mm per year offering U.K. Television Programming and Urban Films... what can a website and streaming APP like MyFlix generate with more than 12,000 titles, a dozen programming categories and an easily branded name?

These are the principal reasons cited to HHSE managers from key shareholders as to their commitment and enthusiasm for an impressive and solid UPSIDE for Hannover House.

* * * * *

BUT, IT'S NOT ALL ROSES FOR HHSE - THERE ARE SOME CHALLENGES...

The path to registration, up-listing and our new business model is not without obstacles. Hannover House has been focusing tremendous effort these past few months on cleaning-up issues relating to the prior business model, or otherwise addressing items with bad optics or perceived risk.

a). LITIGATION MATTERS - Three months ago, there were two "small" and six "significant" litigation matters that the company wanted to address or resolve in support of the Form 10 filing. Responses and resolutions have already been achieved for three of these items. Of the remaining four significant matters (which are comprised of two predatory lenders and two indie producer disputes), two of these issues are being responded to by counsel next week - with the remaining two responses are being handled for the week ending June 28. HHSE has prevailed in two similar disputes with predatory lenders... and HHSE has prevailed in 15 of the 17 total producer disputes that have arisen during the company's 26-year history (during which time, a total of 458-titles have been released, resulting in a producer litigation rate of under 4%, which is less than 1/3rd of the USA Studios average). However, some HHSE shareholders are growing impatient due to the length of time required to adequately address all of these Form 10 related issues.

b). DEBT BURDEN - Even with victories in the resolution of litigation matters, Hannover House continues to carry an uncomfortable amount of debt. While all of these debts are addressed under the Form 10 and S-1 plans, the overall debt burden may still appears onerous to some outsiders or purposeful critics. However, for the past ten years, the company has been able to manage and juggle its payables and debts under very adverse conditions, and there's no circumstance that management anticipates to change this paradigm. In fact, as the litigation matters are being resolved, the company will be able to reallocate cash resources recently (or currently) spent on legal fees to an acceleration of other debt management. Attorney's are expensive... so, we are happy to be experiencing a reduction in these costs.

c). IT'S THE WILD WEST OF DIGITAL STREAMING - At this moment in time, there is a scramble among media companies to stake a claim in the new digital frontier. Except for Amazon Prime, Netflix and Hulu, MOST of the other streaming competitors are "brand" or "genre'" specific (i.e., DISNEY-FOX, CBS ALL ACCESS, HBO NOW, CURIOSITY STREAM). There is no other announced MULTI-STUDIO, MULTI-GENRE' site like MyFlix... but it's likely that eventually there will be similar, one-stop digital superstores. To the victor go the spoils... which is why Hannover House is focused on a strong, proper and FAST launch of MyFlix.

d). BIG, EVENT MOVIES ARE EXPENSIVE... AND PRODUCTION IS A SLOW PROCESS - It would not be fair to write about a new business model for HHSE that is focused in part on the production of major feature films, without disclosing that the production of major features is expensive, difficult and time-consuming. It starts with a solid property... then moves to creative attachments (director and stars), then moves to international presales, co-production ventures and incentive opportunities before the whole package ends up as collateral for a funding credit facility. Then you have to actually SHOOT the movie, edit the film, add sound effects, visual effects, titles, surround-sound mix and other final mastering. It's about 12-to-18 months (under the best of circumstances) from the decision of "let's do this" to a film's opening day at the theatres. BUT, the presales and incentives remove all financial downside, and the substantial ownership in the completed films by HHSE delivers a big upside with these major productions. These films also become permanent film library assets for HHSE.

e). RELIANCE ON PRINCIPAL MANAGERS - There has been some concern that the future success of HHSE is overly dependent upon the continued employment of C.E.O. Eric Parkinson and President Fred Shefte. While it's clear that both individuals are functioning as the locomotives to move these corporate initiatives forward... the 3-1/2 month medical leave-of-absence last fall for Fred Shefte shows that the train keeps rolling even if one of the engineers is temporarily out of commission. As for Parkinson, he owns 43,141,649 Common Stock Shares (with an opportunity to recapture 31,800,000 previously surrendered shares), and his 2,400,000 Preferred Shares may be converted into 24,000,000 Common Stock Shares under a post-registration reclassification. That puts the current market value of the Parkinson shares at $1,246,664, and at the modest PPS forecast of $.08 / share (post registration), the value of Parkinson's HHSE shares could soar to $7.91-mm. Prior to the registration filing, these officer-owned shares are heavily restricted by law from sale, hypothecation, assignment, attachment or any other form transfer... which collectively illustrates the tremendous upside available to C.E.O. Parkinson for the achievement of the baseline goal of S.E.C. registration and up-listing. What will the HHSE stock price be after the MyFlix Launch or after one or more "big" movies gets released?

f). WHAT IF, WHAT IF, WHAT IF? - There's always a potential for unknown factors, acts of God, terrorist attacks, bad federal governance and other such incidents outside of management's control that could impact the best laid plans. The goal of the HHSE managers is to review all activities and likelihoods and them to implement the best obtainable business plan for the company. On the contrary, the goal of professional critics is to sow fear and uncertainty in order to suppress a company's stock price. A chorus of internet trolls has spent years of otherwise productive time spewing absurdities and gloomy predictions against HHSE on a popular chat board... ever since Jan. 1, 2010 - when Hannover House became "public" (under TDGI - Target Development Group, Inc., later rebranded as Hannover House, Inc. / OTC: HHSE). These chat board critics have been attacking the HHSE officers, critizing every project of the company and repeatedly claiming "the sky is falling any minute now." But after nearly ten years, that asteroid has still not hit, and frankly, never will. That's why wise investors ignore the anonymous chat board trolls and make investment decisions based on an impartial analysis of all that's good... and all that's bad.

Therefore, we believe that some of the relevant questions that a prospective investor in HHSE needs to think about are:

1). FORM 10 - Will HHSE complete and file its Form 10 Registration Statement (which is the catalyst to up-listing the stock and dramatically expanding investor access)?

2). CLEAN-UP PRIOR BUSINESS MODEL - Will HHSE managers succeed in cleaning-up / eliminating the distractions that occurred as a result of the prior (indie-film DVD) business model that became unprofitable?

3). BIG MOVIES - Will HHSE managers be able to put together all of the pieces required to get a major motion picture off-the-ground?

4). MYFLIX - Will HHSE (through Vodwiz, Inc.) be able to on-board and launch a major consumer streaming site with over 12,000 titles from 40+ suppliers?

5). MANAGEMENT COMMITMENT - With an upside to Parkinson of nearly $8-mm after registration, uplist and the MyFlix launch (and a $4-mm upside to Shefte).... how committed and motivated are the HHSE managers to implementing these corporate initiatives?

* * * * *

Accordingly, while we have answered the question as to "What's Happening At Hannover House," the answer to the other question, "Is this a Good Time to Accumulate Shares" can only be answered by the individual investor after an analysis of their own risk-adversity and appetite for upside potential. A Dow Jones Indexed Fund is more liquid, but unlikely to experience the tremendous pricing appreciation that is possible with an equity like Hannover House. On the other hand, the endeavors that Hannover is pursuing are significant and difficult... but the historic share price floor has proven to be remarkably stable over the prior nine years. So, we must defer an investment answer to each individual and their circumstances.

But by all means, watch this space!


http://hannoverhousemovies.blogspot.com/2019/06/greetings-hhse-friends-followers-last.html






HHSE

[speckulater]

BLOG-6/17: Precision & Accuracy Separate Public Company.Statements .From.Misrepresentation








Monday, June 17, 2019

Precision & Accuracy separate public company statements from misrepresentation

Greetings HHSE Friends & Followers - About ten days ago, Hannover House put out a press release which discussed an unexpected revenue surplus for the State of Arkansas - and how this is being viewed as "tremendous news" among those supporting a new structure for media incentives.

A copy or the press release is below (with the ONLY change being the addition of PARAGRAPH numbers for the purpose of this BLOG). The press release is posted to OTC Markets under HHSE.

One of the more vocal "stock critics" against HHSE has posted a series of inflammatory and extremely inaccurate statements on a stock chat board, which state that the press release was not truthful. Let's examine these claims in order to clearly show the difference between a precise and accurate public company statement, and a series of intentional lies from a stock manipulator:

1). In paragraph (1) of the press release below, the subject of the $174-surplus is addressed. It is easy to verify this revenue surplus using "Google" or other search engines. This first paragraph further states that this surplus has "sparked renewed enthusiasm for the New Media Incentives Program." The evidence for this are communications sent to Parkinson by top legislative leaders saying (in summary): "now would be a good time to seek a year-one funding allocation." Nowhere in this paragraph is it represented that this program is now FUNDED or has unanimous support with the Governor or AEDC, neither of which are mentioned.

2). In paragraph (2) below, Parkinson states his opinion as to why this surplus occurred, and how its timing offers Arkansas a fortuitous opportunity. These statements are in quotations and as such are attributed as Parkinson's opinion.

3). Paragraph (3) describes the primary differences between the New Media Incentives Program developed and presented by Parkinson - vs. the existing film incentives structure for Arkansas. The veracity of these statements can be evidenced by simply looking at the new program and comparing it to the existing program.

4). Paragraph (4) is also a quote from Parkinson, but rather than stating his opinion, it lists items that Parkinson is attributing as FACT. Yes, it is factual that 100% of the Legislators that met with Parkinson and Rivers on this plan showed enthusiasm and support. This includes the formal presentation to the Arts Council - which was ALSO attended by a representative of AEDC, who did NOT like or support the idea of proposing a whole new program. While not listed anywhere in this release, it may be notable to state that Parkinson's meeting with Film Commissioner Chris Crane did not result in Mr. Crane's acceptance or interest in a new program. At the time of the meeting, Mr. Crane was concerned with the passage of a renewal of the existing program, and told Parkinson that he was concerned that proposing a whole new structure could jeopardize the renewal, and that the state could end up with no program at all. We were told in an email sent to Parkinson by Mike Preston that Mr. Crane relayed his concerns to Mr. Preston, and as such, the AEDC would NOT be supporting a new program during the spring legislative session. Again, nowhere in the press release is it stated or implied that either the AEDC or Governor are (or had previously) supported the new program.

5). Paragraph (5) lists industry data for production in Arkansas, which can also be easily confirmed by basic internet searches.

6). Paragraph (6) is a quote from Parkinson expressing his opinion as to why a program that provides incentives to Arkansas-based entities makes more sense than a program which encourages out of state companies to "hit and run" after payment.

7). Paragraph (7) lists the total number of State Representatives and State Senators that were presented with the program (40), all of whom expressed interest in the proposal, but concern about a funding source. This paragraph also mentions the MyFlix site and describes what the company is preparing for that venture (and how it could benefit Arkansas if located here).

8). Paragraph (8) talks about previously disclosed corporate activities for Hannover House, which are easily verified by searching disclosures, this blog, OTC Markets filings or internet search engines.

It's quite clear that there are NO misrepresentations in the Press Release. Nowhere does it state that the New Media Incentives Program has the support of either the Governor or the AEDC office... however, the stock board poster is focused on making these false statements. The support for the New Media Incentives Program comes from the legislators... and the obstacle to progression was in identifying a funding source or renewable funding mechanism. The 'renewed enthusiasm' resulting from an unexpected revenue surplus of $174-mm is that the Governor may now want to consider the allocation of resources for this jobs-creation plan. With the $9-billion dollar film industry in the State of Georgia now suffering abandonment from major studios, the Governor's quick action in Arkansas could grab a big piece of this employment sector. That was the point of the press release.

For what it's worth, the passage or NON-passage of the New Media Incentives Program developed by Parkinson for the State of Arkansas has NO impact on any of the projects and current corporate endeavors of Hannover House and affiliates. If it passes... if it's funded... it COULD pay dividends in the future. But for now, it's simply a very good idea being pursued by the HHSE C.E.O.

Please be advised that any and all communications between elected state officials and constituents or outsiders are obtainable through the Freedom of Information Act. Anyone contacting the State to inquire about this New Media Incentives Proposal needs to be aware that all communications are public, and that the use of a false identity can be prosecuted under Arkansas law. All of Parkinson's communications to - and from - the Governor's office, the AEDC and all of the legislators can be obtained through a FOIA request -- as can all communications made by those with nefarious intentions who prefer to misrepresent the Hannover House press announcement rather than rise to the level of the mandatory precision and accuracy that is required of public companies.


$174-mm Arkansas Surplus Sparks Interest in New Media IncentivesPress Release | 06/07/2019

(1) The Arkansas Department of Finance and Administration has announced that the state has generated a surplus of over $174-million for the fiscal year ending June 30, 2019, which has sparked renewed enthusiasm for the New Media Incentives Program developed by N.W. Arkansas entertainment executive, Eric Parkinson, C.E.O. of Hannover House, Inc. (OTC: HHSE).

(2) "This is tremendous news," said Parkinson, "and we can attribute much of this surplus to programs and policies enacted by the Legislature and Governor Asa Hutchinson. As state government officials work together, hand-in-hand with businesses such as Hannover House, we can now begin to implement the economic and employment programs detailed in the New Media Incentives Program for Arkansas. The timing is especially fortuitous as many of the media companies comprising the $9-bilion dollar film industry currently operating in the State of Georgia are looking to relocate their operations," he concluded.

(3) The New Media Incentives Program drafted by Parkinson is designed to allocate a majority of state incentives to companies residing in Arkansas, as opposed to rewarding out-of-state media companies to "hit-and-run." The program provides significant rebates for qualifying film and television productions, and includes the broader spectrum of "new media" and digital industry jobs, including data management, website and APP creation and data-streaming services, such as the multi-studio, Netflix-like consumer streaming venture of Hannover House known as MyFlix.

(4) "There was unanimous support across both aisles of the Legislature for the New Media Incentives Program during this past session," said Parkinson. "The obstacle to finalizing this program into law was the designation of a funding component that would be reliable and repeatable. Several funding programs were proposed, but none would have resulted in an immediate funding source for the first year of incentives. The availability of this significant revenue surplus for Arkansas enables us to kick-start this important jobs and economic program for FYE 2020."

(5) Last year was a record year for film and television production within Arkansas, due primarily to the expenditure of a reported $90-million by HBO on the production of season three of "True Detective." While the existing Arkansas film incentive program did generate a substantial rebate payment to HBO (rumored at $21-million), these funds were functionally sent out of state and were not reinvested into creating long-term jobs and a sustainable media industry. The Parkinson plan calls for most of the Arkansas incentives to be paid to companies located within Arkansas and those making a long-term, strategic investment in the media industries within Arkansas.

(6) "A state program would not incentivize an auto-maker like General Motors to set-up an operation to build cars for only six months and then leave," said Parkinson. "So why should the Arkansas film and media incentives not follow this same sort of philosophy of being used to create permanent jobs instead of temporary activities?"

(7) During the recent spring legislative session for Arkansas, Parkinson met with over forty Arkansas House or Arkansas Senate representatives, as well as with Governor Hutchinson, the Arkansas Economic Development Commission, the AFL-CIO and a variety of major businesses and owners including power-utility giant Entergy (owner of the Russellville Nuclear One Plant, among many others). He reports receiving unanimous support from these businesses and elected officials for the implementation of the New Media Incentives Program, with the only obstacle being the designation of a first-year revenue funding source (while the program begins to self-fund in subsequent years). The news of a major and unexpected surplus for Arkansas is expected to facilitate this launch opportunity.
Hannover House, Inc. is a full-service media company, located in Fayetteville, Arkansas, and operating continuously for the past 26-years. The company has released over 450 feature film and television titles to the DVD market, with Walmart Stores among its top ten clients. Recently, with the consumer transition away from the purchasing of DVD products - and now favoring digital streaming - the company has refocused onto both bigger-budgeted original feature film productions as well as a new streaming venture known as MyFlix, which combines over 12,000 titles from more than 40 separate suppliers into a one-stop digital superstore for consumers to access. Many analysts feel that the MyFlix venture has the upside potential that has made other streaming suppliers, such as Amazon and Netflix, into media powerhouses. Accordingly, many elected officials from the State of Arkansas are desirous of having Hannover House establish and maintain the MyFlix venture within Arkansas.

(8) Hannover House has announced that the company will be filing a Form 10 registration statement with the Securities and Exchange Commission, which will enable the company to elevate the stock from its current listing on the OTC Pinksheets to the more accessible, investor-friendly and prestigious OTC-QB board. Parkinson feels that the timing of the launch of MyFlix, combined with the company's uplisting and other activities - including the New Media Incentives Program - should create enhanced interest in the company.
For More Information, contact: ERIC PARKINSON / 818-481-5277 / [e-mail]

https://www.otcmarkets.com/stock/HHSE/news/CORRECTION-174-mm-Arkansas-Surplus-Sparks-Interest-in-New-Media-Incentives?id=230954


http://hannoverhousemovies.blogspot.com/2019/06/precision-accuracy-separate-public.html






HHSE

[speckulater]

DUE-DILIGENCE: Audits, Form-10, S-1, MyFlix, 4-Major-Films, Uplist-OTC:QB, $0.10+











Per Yahoo Finance right now HHSE has a Book Value of $0.04. Though extremely hard to quantify, the HHSE Audits and Form 10 add further significant value to HHSE. Not to mention HHSE Uplist to OTC:QB (get off the Pinks) with a broader base of more sophisticated and knowledgeable investors. This partly explains why accredited investors are willing to pay premium prices (S-1) for HHSE.



**** Steps To HHSE Uplisting, $0.10+ ****

Step #1.) HHSE BOOK VALUE PER SHARE

Step #2.) SUPER-SUCCESSFUL BERLINALE/EMF FESTIVAL

Step #3.) AUDITED FINANCIALS

Step #4.) FORM 10 REGISTRATION

Step #5.) S-1 SHELF REGISTRATION

Step #6.) HHSE-WINNING THE WAR AGAINST FALSE/FRAUDULENT FOREIGN JUDGEMENTS

Step #7.) TRANSITION TO TWO-PRONGED BUSINESS MODEL (MyFlix, Major-Films)

Step #7a.) MYFLIX Multifaceted Digital-Streaming, Website & OTT Channel

Step # 7b.) FOUR MAJOR-FILMS PER-YEAR (High-Caliber Casts, 500+ Theaters)

Step #8.) NEW MEDIA INCENTIVES LEGISLATION, HHSE-CEO Parkinson Designer/Drafter

Step #9.)UPLIST-OTCQB (More Sophisticated & Knowledgeable Investors, Funding Opportunity)


* (Need to mention this item. HHSE Updated Film Library Evaluation. Have not included yet, because not sure how it plays in to HHSE new business model. Updated Film Library Evaluation should be completed. Stated in OTCMarkets Document the new HHSE Film Library Evaluation equals at least $28,000,000). https://investorshub.advfn.com/boards/read_msg.aspx?message_id=145447965










**** Most Recent, Pertinent Blog, News ... ****
* BLOG-6/14 Why Many Investors & Shareholders Bullish On HHSE
* BLOG-3/29 The Trandformation of HHSE.... (MyFlix Streaming Venture - 12.000+ Titles)
* BLOG-1/13 BLOG: (10)-Q&A; Form-10, S-1, MyFlix-Exciting-Blog-Coming, Major-Films, Non-Film ACQUISITIONS
* NEWS(PR)/DD: New Multi-Studio MyFlix Home-Page Sneak Peek (Launching)
* Form 10 Lights Fuse, S-1 Ignites HHSE Stock Price
* BLOG-11/4 HHSE Business Model, Form 10 & S-1 Registrations




**** DD Links ****
* HHSE CEO Eric Parkinson Professional BIOgraphy With Photos (Updated/Expanded-12/20/18)

























HHSE

[speckulater]

BLOG-6/14: Bullish On HHSE; CEO Explains-Why To Investors/Shareholders






Friday, June 14, 2019


Investors are asking about Hannover House....





Greetings HHSE Friends & Followers - Last week (during the WALMART Annual Shareholder's Meetings in N.W. Arkansas), HHSE C.E.O. ERIC PARKINSON was asked by quite a few institutional-level investors and funds to provide an update on "what's happening at HHSE..." and more specifically "... is this a GOOD time to accumulate shares?"

As per S.E.C. guidelines, it is not possible to provide a manager's analysis or prognostication to a handful of investors - unless this same information is provided simultaneously via a public forum or disclosure to ALL current and prospective investors. Accordingly, this blog is designed to provide a manager's level analysis and to answer the questions of "what's happening at HHSE" and "is this a GOOD time to accumulate shares?"

These are both relevant and timely questions.

Over the past few years, the Hannover House blogsite (on which this post appears), has concentrated primarily on writing about all of the great-and-amazing things that the company is endeavoring to achieve. So, for those not previously following this Blog, here's a quick bullet point of why many investors and shareholders are bullish on HHSE:

1). HANNOVER HOUSE HAS LONGEVITY - AND IS MULTI-FACETED. Formed in 1993 and operating continuously now for 26-years, Hannover House has longevity and stability at an unprecedented level for an OTC Pinksheets company. Additionally, the company has shown resilience in evolving or refocusing its business models to accommodate the changing media marketplace (from books, to DVDs, to Theatrical, to International and now onto Streaming).





2). HANNOVER'S NEW MODEL FOR PURSUING "HIGH-PROFILE" FEATURES - The maturing independent film marketplace now prefers bigger-budgeted films, with top-name stars as opposed to the early DVD years which made micro-budget programming surprisingly profitable. This new model of bigger films is beneficial to Hannover House because it provides operating liquidity and a tremendous "upside potential" without downside risk (as the films are funded through presales and incentives). Additionally, these films become part of a permanent asset base for HHSE.




3). HANNOVER'S VENTURE FOR MyFLIX COULD BE ENORMOUS - The in-home digital streaming model is rapidly becoming the dominant form of home-entertainment delivery. Hannover House has beren contracted to create and launch a multi-studio streaming site called MyFlix, which combines over 12,000 titles of programming from over 40-supplier studios into a one-stop digital superstore. Think of MyFlix as the "Walmart" of digital streaming. Hannover has the option to acquire MyFlix (for $1) after a successful launch.




4). HANNOVER'S PENDING S.E.C. REGISTRATION FILING - For the past nine years, Hannover House has been operating as an OTC Pinksheets company. Many investors and funds are prohibited by law or self-governance from investing in "Pinksheet" stocks. Accordingly, the current registration with the S.E.C. (via Form 10), is expected to significantly increase shareholder access to HHSE, and as a result, is expected to have an appreciation impact to the stock value. The HHSE shares would be up-listed to eithe OTC: QB or OTC: QX. Hannover House is also filing a post Form 10 "S-1 Registration Statement" designed to generate up to $8-mm in operating cash for the company via the direct sale of stock shares at between $.03 and $.08 each... making the current market pricing of the stock ($.0115 approx.) into a bargain opportunity.

5). HANNOVER'S STOCK "PUBLIC FLOAT" IS TIGHTLY CONTROLLED - the vast majority of the HHSE "public-float" stock (over 85%) is controlled by about thirty key shareholders that have made the long-term commitment to hold their shares and to support a move of the stock past the $.10 / share level (or higher). These are sophisticated and substantial traders and investors who recognize that the UPSIDE RUN has not yet happened for Hannover House - and that any one of the key corporate endeavors could trigger an explosive appreciation in stock interest and pricing. This tight control and shareholder commitment has made the stock price very STABLE over the past nine years. While there have been some short-term "peaks" in pricing (and a few, short-term dips), the year-over-year AVERAGE stock price without any of these significant corporate benchmarks has averaged between $.011 and $.028 / share... putting the current stock pricing at the bottom end of the company's historic average trading ranges.

IN SUMMARY...

* The current elimination of balance sheet debts will have a significant and positive impact to the company.

* The registration and up-list opportunities this opens for HHSE will substantially increase shareholder access to the stock.

* Four feature productions are providing overhead and cash flow to Hannover House -and three of these films offer an upside measured (literally) into the tens-of-millions of dollars as being both realistic and obtainable possibilities.

* The MyFlix website and streaming APP has over 40-studio supplier partners (including titles from THREE of the Major Studios). If a site such as Accorn.TV is currently generating over $80-mm per year offering U.K. Television Programming and Urban Films... what can a website and streaming APP like MyFlix generate with more than 12,000 titles, a dozen programming categories and an easily branded name?

These are the principal reasons cited to HHSE managers from key shareholders as to their commitment and enthusiasm for an impressive and solid UPSIDE for Hannover House.

* * * * *

BUT, IT'S NOT ALL ROSES FOR HHSE - THERE ARE SOME CHALLENGES...

The path to registration, up-listing and our new business model is not without obstacles. Hannover House has been focusing tremendous effort these past few months on cleaning-up issues relating to the prior business model, or otherwise addressing items with bad optics or perceived risk.

a). LITIGATION MATTERS - Three months ago, there were two "small" and six "significant" litigation matters that the company wanted to address or resolve in support of the Form 10 filing. Responses and resolutions have already been achieved for three of these items. Of the remaining four significant matters (which are comprised of two predatory lenders and two indie producer disputes), two of these issues are being responded to by counsel next week - with the remaining two responses are being handled for the week ending June 28. HHSE has prevailed in two similar disputes with predatory lenders... and HHSE has prevailed in 15 of the 17 total producer disputes that have arisen during the company's 26-year history (during which time, a total of 458-titles have been released, resulting in a producer litigation rate of under 4%, which is less than 1/3rd of the USA Studios average). However, some HHSE shareholders are growing impatient due to the length of time required to adequately address all of these Form 10 related issues.

b). DEBT BURDEN - Even with victories in the resolution of litigation matters, Hannover House continues to carry an uncomfortable amount of debt. While all of these debts are addressed under the Form 10 and S-1 plans, the overall debt burden may still appears onerous to some outsiders or purposeful critics. However, for the past ten years, the company has been able to manage and juggle its payables and debts under very adverse conditions, and there's no circumstance that management anticipates to change this paradigm. In fact, as the litigation matters are being resolved, the company will be able to reallocate cash resources recently (or currently) spent on legal fees to an acceleration of other debt management. Attorney's are expensive... so, we are happy to be experiencing a reduction in these costs.

c). IT'S THE WILD WEST OF DIGITAL STREAMING - At this moment in time, there is a scramble among media companies to stake a claim in the new digital frontier. Except for Amazon Prime, Netflix and Hulu, MOST of the other streaming competitors are "brand" or "genre'" specific (i.e., DISNEY-FOX, CBS ALL ACCESS, HBO NOW, CURIOSITY STREAM). There is no other announced MULTI-STUDIO, MULTI-GENRE' site like MyFlix... but it's likely that eventually there will be similar, one-stop digital superstores. To the victor go the spoils... which is why Hannover House is focused on a strong, proper and FAST launch of MyFlix.

d). BIG, EVENT MOVIES ARE EXPENSIVE... AND PRODUCTION IS A SLOW PROCESS - It would not be fair to write about a new business model for HHSE that is focused in part on the production of major feature films, without disclosing that the production of major features is expensive, difficult and time-consuming. It starts with a solid property... then moves to creative attachments (director and stars), then moves to international presales, co-production ventures and incentive opportunities before the whole package ends up as collateral for a funding credit facility. Then you have to actually SHOOT the movie, edit the film, add sound effects, visual effects, titles, surround-sound mix and other final mastering. It's about 12-to-18 months (under the best of circumstances) from the decision of "let's do this" to a film's opening day at the theatres. BUT, the presales and incentives remove all financial downside, and the substantial ownership in the completed films by HHSE delivers a big upside with these major productions. These films also become permanent film library assets for HHSE.

e). RELIANCE ON PRINCIPAL MANAGERS - There has been some concern that the future success of HHSE is overly dependent upon the continued employment of C.E.O. Eric Parkinson and President Fred Shefte. While it's clear that both individuals are functioning as the locomotives to move these corporate initiatives forward... the 3-1/2 month medical leave-of-absence last fall for Fred Shefte shows that the train keeps rolling even if one of the engineers is temporarily out of commission. As for Parkinson, he owns 43,141,649 Common Stock Shares (with an opportunity to recapture 31,800,000 previously surrendered shares), and his 2,400,000 Preferred Shares may be converted into 24,000,000 Common Stock Shares under a post-registration reclassification. That puts the current market value of the Parkinson shares at $1,246,664, and at the modest PPS forecast of $.08 / share (post registration), the value of Parkinson's HHSE shares could soar to $7.91-mm. Prior to the registration filing, these officer-owned shares are heavily restricted by law from sale, hypothecation, assignment, attachment or any other form transfer... which collectively illustrates the tremendous upside available to C.E.O. Parkinson for the achievement of the baseline goal of S.E.C. registration and up-listing. What will the HHSE stock price be after the MyFlix Launch or after one or more "big" movies gets released?

f). WHAT IF, WHAT IF, WHAT IF? - There's always a potential for unknown factors, acts of God, terrorist attacks, bad federal governance and other such incidents outside of management's control that could impact the best laid plans. The goal of the HHSE managers is to review all activities and likelihoods and them to implement the best obtainable business plan for the company. On the contrary, the goal of professional critics is to sow fear and uncertainty in order to suppress a company's stock price. A chorus of internet trolls has spent years of otherwise productive time spewing absurdities and gloomy predictions against HHSE on the popular I-Hub chat board... ever since Jan. 1, 2010 - when Hannover House became "public" (under TDGI - Target Development Group, Inc., later rebranded as Hannover House, Inc. / OTC: HHSE). These chat board critics have been attacking the HHSE officers, critizing every project of the company and repeatedly claiming "the sky is falling any minute now." But after nearly ten years, that asteroid has still not hit, and frankly, never will. That's why wise investors ignore the anonymous chat board trolls and make investment decisions based on an impartial analysis of all that's good... and all that's bad.

Therefore, we believe that some of the relevant questions that a prospective investor in HHSE needs to think about are:

1). FORM 10 - Will HHSE complete and file its Form 10 Registration Statement (which is the catalyst to up-listing the stock and dramatically expanding investor access)?

2). CLEAN-UP PRIOR BUSINESS MODEL - Will HHSE managers succeed in cleaning-up / eliminating the distractions that occurred as a result of the prior (indie-film DVD) business model that became unprofitable?

3). BIG MOVIES - Will HHSE managers be able to put together all of the pieces required to get a major motion picture off-the-ground?

4). MYFLIX - Will HHSE (through Vodwiz, Inc.) be able to on-board and launch a major consumer streaming site with over 12,000 titles from 40+ suppliers?

5). MANAGEMENT COMMITMENT - With an upside to Parkinson of nearly $8-mm after registration, uplist and the MyFlix launch (and a $4-mm upside to Shefte).... how committed and motivated are the HHSE managers to implementing these corporate initiatives?

* * * * *

Accordingly, while we have answered the question as to "What's Happening At Hannover House," the answer to the other question, "Is this a Good Time to Accumulate Shares" can only be answered by the individual investor after an analysis of their own risk-adversity and appetite for upside potential. A Dow Jones Indexed Fund is more liquid, but unlikely to experience the tremendous pricing appreciation that is possible with an equity like Hannover House. On the other hand, the endeavors that Hannover is pursuing are significant and difficult... but the historic share price floor has proven to be remarkably stable over the prior nine years. So, we must defer an investment answer to each individual and their circumstances.

But by all means, watch this space!


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