Welcome to the Hannover House Investor Relations Blog

Thursday, January 11, 2018

Yowsa! Mega-Success of "IT" video release spurs THOUSANDS of new orders for HHSE's BATTLECREEK!

Dear HHSE Friends & Followers - This Tuesday was the Video release date for the blockbuster theatrical hit "IT" - starring Bill Skarsgård as the super-scary clown.  Consumer response for "IT" has been so substantial that Hannover House has already received  new orders for multiple thousands-of-units of "BATTLECREEK" (street date Feb. 6), also starring Bill Skarsgård!  The momentum might get even stronger with the February launch of Bill's new TV series, "CASTLE ROCK" from J.J. Abrams, Stephen King and HULU.  With "BATTLECREEK" right in the middle of a media-feeding-frenzy for Bill Skarsgård - this title looks to be positioned as a very successful video release for Hannover House!

Thursday, January 4, 2018

HHSE Engages Counsel to Dispute Fraudulently Obtained Judgments, and other updates

Greetings HHSE Friends & Followers - As a component of our move to clean-up our balance sheet and shed the company of frivolous lawsuits and erroneous debts, HHSE has engaged the Law Firm of Steven H. Kay Associates in Fayetteville, Arkansas.  Mr. Kay will be filing motions to initially "freeze" collection efforts by BEDROCK VENTURES and JSJ INVESTMENTS - based on the fraudulent nature of the underlying claims and the "foreign judgment" status that can be contested and adjudicated under Arkansas Law for foreign default judgments (i.e., defaults obtained in states other than Arkansas).  HHSE Shareholders may recall that we pursued this same strategy with TCA Global Master Fund - a company that is often considered to be the nuclear bomb of Predatory Lenders - and HHSE prevailed under Arkansas Law.

HHSE Shareholders might also recall that Steven H. Kay was counsel for HHSE recently in the case against Amityville Asylum producers filing a frivolous claim for "projected" amounts due.  It was HHSE position that the producers were only due the amounts per the terms of the contract... not a projected amount that the producer "felt" the movie "might have earned."  The claim for more than $300,000 by Amityville was reduced to the actual balance of $17,000 and change, which was the outcome that HHSE successfully sought to obtain.

HHSE Shareholders may also recall that "stock short-sellers" were crying "sky is falling, the end is near" with the Amityville lawsuit filing, in hopes of persuading emotional sellers to dump HHSE stock last summer.  Again, we remind all shareholders to refer to HHSE filings and this blog for legally accurate information and full disclosures, as opposed to paying any attention to the drunken mumblings of anonymous chat-board short-sellers. These naysayers know that their days of having any impact against HHSE are short-numbered, as our Form 10 registration will elevate the access of the company's stock to a much wider base of investors - thus minimizing the impact of self-serving, chat-board chatter.

Regarding BEDROCK, due to breached commitments for funding the company that were the basis of a massive stock issuance by HHSE to Bedrock, HHSE counsel feels that this California judgment filing has a solid basis to be contested, adjudicated and won in Arkansas Courts.

Regarding JSJ INVESTMENTS, the refusal of JSJ to accept cash plus interest in full (per the terms of the note), but instead to sue for more than three-times the amount on the pretense that "they were always entitled to shares, not 'just' repayment" renders the note usurious and illegal under the laws of virtually every state.  Counsel, therefore, feels that a motion to freeze collection efforts and to re-open the claim so that it can be adjudicated, is a likely result for HHSE.

In other corporate governance matters, the company has renewed it's various corporate filings with the Secretary of State offices in Wyoming and Arkansas (an annual house-keeping matter of a simple filing).  The company has also received confirmation from the IRS that the full payroll tax liabilities that were the subject of a prior lien have been fully paid, and that a reconciliation of the revised amount of interest and penalties (also paid) shall be issued shortly and submitted to all HHSE customers receiving levy letters.  HHSE has since engaged a payroll service to handle the monthly 941 and tax paperwork filing requirements. 

All of these steps are elements of the Form 10 Registration that the company is planning to file in the upcoming weeks... and to set off 2018 as an epic year for our loyal and fully informed shareholders!


Tuesday, January 2, 2018

Update on corporate filings

Happy New Year to HHSE Friends & Followers. Here's a couple of quick updates on corporate filings.

1).  Q3 filings will be submitted to the OTC Markets tomorrow - this should restore the company's "current" status. UPDATE: THURS., JAN. 4 - The annual HHSE subscription to the OTC Markets had expired and had to be renewed (which occurred on Tuesday); However, OTC MARKETS client services told HHSE this morning that the company's access to post reports (currently Q3), will be activated within the next day or two.

2).  Q4 filings will be completed by Monday and provided (along with full 2017 results) to the outside CPA firm conducting the Pre-audit review.

3).  Upon completion of the Pre-audit review, HHSE will submit the full 2016 and 2017 packages to our auditors in preparation for the stock registration filing.

4).  Annual corporate governance filings (with applicable Secretary of State and Registered Agents) will also occur this week.

Watch for press news on new releases and distribution updates this week and next week. Very exciting times....

Saturday, December 23, 2017

Where we have been... Where we are now... and Where we are going at HHSE...

Greetings HHSE Friends & Followers:

As we reflect back on 2017, HHSE Management is taking a few days to look at our past, present and future activities to help guide sage decisions.  2017 has been a momentous year for the company - due in large part to the attempted (but terminated) merger with Crimson Forest, and the subsequent re-focus of the company's primary activities and revenue streams.

Looking much further back - five, six, seven years and more - and looking forward in time for an equal time-frame, we can see trends and opportunities for HHSE and our shareholders.

First of all, we'd like to point out that Hannover House is unlike most any other "OTC Pinksheet" listed company.  We have been operating continuously since 1993 (24-years) and have been reporting to the OTC Markets since Dec. 2009 (8-years).  Statistically, most OTC listed equities are flashes-in-the-pan time wise... lots of Stock Hype / I.R. Promotions, insider share dumps, and quick closures.  That's definitely not HHSE.

As a result of this general trend for Pinksheet companies, a whole sub-industry of stock manipulators has developed that can impact OTC-Pinksheet listed companies (for the entirety of OTC markets in general, not specifically limited to Hannover House).  Like a gang of drunken hobos in public park - mumbling to each other with insane prognostications - the stock hobos are only effective against low-information shareholders gullible enough to actually read the chat-board postings of manipulative and fact-free ramblings.

Fortunately, every false statement made by the stock hobos or those manipulators attempting to "box" or otherwise control the HHSE stock price, can be easily countered with demonstrable facts.

So, let's take a few minutes to take a high-altitude look at the Company and where we are going.


*  We believe that HHSE is "one film away" from being a major independent studio. All it takes is any one of the many titles in our current release queue to become a surprise box officer performer such as "Lady Bird" or "Get Out" and we are suddenly a $100-MM company.

*  We have an impressive slate of titles for 2018 and 2019 - and two terrific distribution partners for North America (Cinedigm Entertainment and Sony Pictures Home Entertainment) - as well as our direct relationships with all of the major theatre exhibition chains. Our "lower-end" titles are much higher profile than in past years... and our higher-end titles are now genuine theatrical caliber contenders. We are positioned for the proverbial lucky break that happens when the right film is released at the right time...

*  Our recently re-focused Theatrical Release model is delivering huge benefits to our ancillary revenues... and our new partnerships with indie labels is providing access for the VODWIZ streaming venture, which truly could become "the tail that wagged the dog" for HHSE shareholders.

What else is worth noting for this long, holiday weekend?  Here are a few observations:

1).  Hannover House has Not Issued any Shares in 2.5-years.  See the chart below.  For the company's first two years as a public equity, the stock structure was quite stable.  For the past 2-1/2 years, the stock structure has also been stable.  But in 2013 and 2014, the company got involved in some ugly predatory lender situations, most notably TCA Global and JSJ, which precipitated a rapid growth in share issuances. The business model for both TCA and JSJ - as exercised against HHSE and many other borrowers - is to make repayment with cash as difficult as possible, in order to force a "conversion of the debt" into freely trading shares of the issueer at a dramatic discount-to-market. Such returns grossly exceed the legal usury law limitations in all states, and this general business practice is operating in a legally dubious space.  JSJ, for instance, refused to accept repayment from HHSE via a bank wire transfer (including all applicable, legal interest per the note), preferring instead to file a lawsuit (in Texas?!), in order to try to force repayment via shares at 200% or more interest.  These predatory lenders generally prey on companies that are unable to defend themselves, and therefore are forced to allow the lenders to squeeze out profits far in excess of lending laws through toxic-conversions; most of the time, these small borrowers are ultimately forced out of business.  However, this was not the case with Hannover House - as the company has a  operating business that is unaffected by fluctuations of our stock price and not dependent on the issuance of shares for capital. These toxic dilutions from 2013 and 2014 definitely hurt our shareholders, and hurt our "market cap," as demonstrated in the charts.  So, the Board voted to cease such forms of borrowing, and as a result, HHSE has not issued any new shares in 2.5-years.  Anyone predicting on a chat board or anywhere else that a "big dilution is coming" is mistaken.

2).  It Doesn't Take Much to Double or Triple the HHSE Share Price - Look at the market-cap spike for HHSE stock earlier this year (seen as June, 2017).  This increase in PPS was due to shareholder excitement about the prospect that a merger with Crimson Forest would provide HHSE with high-profile films to distribute.  The growth in PPS was not based on any increase in revenues (in fact, the time-distraction of the Crimson merger caused many 2017 releases to be delayed).  The PPS spike was driven solely by enthusiasm.

3).  Does HHSE Need a Merger Partner? - If the right opportunity came along that would provide HHSE with a reliable source of high-end theatrical titles, we would be responsive to consider such opportunities. However, the programing philosphy ultimately revealed by Crimson Forest did not conform to North American market conditions, in HHSE's opinion. When the promised operating funding didn't materialize, the promised high-end productions turned into low-end films, and the promised "big" releases all turned out to be Mandarin-language releases, we knew that the partnership would not deliver what HHSE wanted for our step-up to major independent status.

4).  What's in Store for the first half of 2018?   

a).  Release Activities:  January will see the theatrical release of "BLOODFEAST" - delayed since July due to MPAA re-cut needs.  February will see a massive placement of DVDs and BluRays for "BATTLECREEK" (street date Feb. 6).  That same week, on Friday (Feb. 9), HHSE will commence the initial theatrical launch of "DEATH HOUSE" to theatres.  In April, three titles will be released via Sony Pictures Home Entertainment (including "DAISY WINTERS");  in May, HHSE will release "THE RIOT ACT" to theatres and Cinedigm will release DVD's and BluRays of "THE LENNON PROJECT" for the Company. Other titles in queue for theatrical and / or home video during the first half of 2018 include "MUSE", "INSOMNIUM", "IDENTITY CRISIS", "SLEEPER CELL", "DINOSAURS OF THE JURASSIC" and "SACRED HEARTS" (all but the last title were planned for 2017, but delayed during the Crimson merger pursuit).  

b).  Corporate Governance:  HHSE will be re-filing a Form 10 Registration with two full years of audits (2016 and 2017) early this coming year, during the first few weeks; the CPA review is already underway and much of the documentation and procedural steps for the audit were already assembled during 2017 while planning for the Crimson merger.  We feel that a registration of the shares and the subsequent uplist to OTC:QB will attract more investors and some institutional funds... resulting in a higher anticipated daily trading volume, and a predicted much higher HHSE stock price (based on business results, industry fundamentals and the proven power of Shareholder Enthusiasm). 

c).  New Ventures - With Sony and Cinedigm handling selected HHSE releases, our management time can be redirected towards theatrical releases, higher-end acquisitions (including productions) and our VODWIZ streaming venture.  As will be seen in our 2017 filings, theatrical release activities are the engine that is now driving HHSE revenues in all other arenas.  Theatrical titles get more shelf space and priority placement when released to home video; theatrical titles get larger license fees from Netflix and Television licensors;  and theatrical titles provide two direct revenue streams for HHSE in the form of both servicing fees and revenue participations.  The current mass merchant and key video retail support for "BATTLECREEK" evidences the sales boost that a targeted, limited theatrical release can deliver for the subsequent home video release.

5).  Thoughts on the HHSE Stock Chart - The chart below is divided into two sections.  The top section shows the "approximate market cap" at six-month intervals beginning in June 2010 and continuing through to this week. The Market Cap was calculated by the total of all shares in issue, multiplied by the closing price of the stock during a one-week period during the stated month.  The bottom section of the chart shows the total SHARES IN ISSUE for the company during this same time frame. The dark-blue shares represent those that are "restricted" from sale, and the light-blue shares represent the total share count of restricted plus unrestricted shares for that time period.

Perhaps the most visible trends to see on this chart are that the company did very little in share issuances for the first two years... and none for the past 2.5-years - as seen by the flat-line of total shares in issue.

The next interesting item of note is the tremendous PPS Spike that occurred earlier this year, at which time the Market Cap jumped from $5.4-MM to $24-MM in just a few month's time.  What's interesting about this result is that the company was functionally frozen from new releases during that time, so the sudden shareholder enthusiasm cannot be attributed to improved revenues... it can only be viewed as a reaction to the prospective merger with Crimson.  The current Market Cap of $12.4-MM has been stable for quite a few months now.

A third observation can be seen during the "heavy dilution" time-frames of 2013 to the end of 2015, when TCA (via MAGNA) and JSJ were flooding the market with toxic-conversion shares. What is interesting about this? Well, the market cap stayed surprisingly stable during this dilution... meaning that the average PPS went DOWN while the total float went UP, but the overall Market Cap remained steady.  HHSE Management believes that the Market Cap remained relatively steady during these dilution times due to Investor Relations / Stock Promotions. As the toxic-lenders dumped their HHSE shares onto the market, some effort was being expended (by them or third parties) to create an investor market for their share dumps... which is another reason why HHSE management hates the concept of these toxic-conversion notes.  It also answers the question that some shareholders have posted to HHSE management over the past few years about "why aren't you doing IR / Stock PR now?" The answer is that we are are focused on building the fundamentals of the business rather than on creating a momentary spike in PPS interest while some third party lender dumps out shares.  We are not philosophically opposed to I.R. and new investor outreach. We just feel that the cost of such promotions would be best utilized after our Registration and other major events in the works.

There are more thoughts and developments to share... watch this blog over the holidays, and watch for news releases occuring between Christmas and New Years, as well as during the first week of January.  Happy Holidays / Merry Christmas / Happy New Year and Best Wishes to all our HHSE shareholders!

Thursday, December 21, 2017

HHSE VODWIZ welcomes Production Master Technician EARL HALE to our Team!

Greetings Hannover House Friends & Followers - Just in time for the Holidays, we are pleased to announce the engagement of EARL HALE as Technical Services Director for VODWIZ and Hannover House.  Earl has an impressive resume in video production, mastering and technical services, including multi-year directorships at Walmart TV and the Media Center of the University of Arkansas Global Campus.  A formal press release will post in early January, along with VODWIZ supplier and status news.

Watch this blog for an informative overview on Saturday of Hannover House for the past two years, as well as a sneak-peek into major activities for the company in 2018!

Monday, December 4, 2017

Successful Initial Launch of DAISY WINTERS to theatres across the USA!

Good morning HHSE Friends & Followers - We again thank our principal theatrical release partner, REGAL ENTERTAINMENT GROUP for their support with locations and promotional assistance for the current theatrical launch of "DAISY WINTERS."  We are honored to have the title on the RegMovies.com HOME PAGE as one of three featured title banners (see screen grab below) - with a campaign that will reach 3.5-million viewers this week.  We are also honored that Regal has done theatre-specific FaceBook promotions for DAISY WINTERS, creating another million+ consumer impressions.  If you have not yet seen this impressive film, check out showtimes at RegMovies.com, or go to: www.DaisyWintersFilm.com.  It's an inspiring, touching and enlightening film, the likes of which Hannover House has never before handled.  Check it out!

 Home Page screen grab of www.RegMovies.com

 Theatre personnel putting up the DAISY WINTERS vinyl banners (next to Star Wars!?)

Daisy Winters posters illuminate nicely inside of theatre light-boxes.

Wednesday, November 22, 2017

...And a very HAPPY Thanksgiving to all HHSE Shareholders!

Greetings to all HHSE Friends & Followers on this pre-Thanksgiving Wednesday!

As we reflect back on the past year, and our current situation, we find much to be thankful for. Some business ventures don't always work out as planned, but circumstances keep working out for the better. The results of this past year generated some definitive conclusions:

1).  COMMERCIAL?  We think it's safe to say that U.S. Theatrical and Video audiences are not anxiously awaiting the next "Mandarin-language" action film.  Despite big production values and big China box office results, the USA theatres and video retailers cannot get traction with films such as "Shock Wave" and "Extraordinary Mission."

2).  GOOD PRODUCT SELLS - U.S. Theatrical Exhibitors and Video Retailers have proven that they WILL strongly support "quality" films with production values, recognized stars and good performances.  Case in point:  our tiny theatrical release of "BATTLECREEK" has now sparked RECORD home video pre-orders for Hannover House - with placements at WALMART, TARGET, BEST BUY, FAMILY VIDEO and "awaiting" final approval from REDBOX.  This is the first HHSE video heavily supported by TARGET in five years!  Our advanced-buzz for "DAISY WINTERS" suggests even more impressive results are likely to follow!

3).  UPLIST - While HHSE does need to "uplist" - we DON'T need to do a corporate-merger with another entity to achieve this goal.  We were enticed by the offer of working capital and access to production funds from Crimson Forest, and thus our long, slow-dance this past year to try and complete a corporate merger.  But in the end, we have determined that we do NOT need to dilute our shareholders by 42% (or any amount) in order to become fully registered and uplisted.  Fortunately, the time we spent attempting to complete the Crimson merger enabled HHSE to get our audit materials and records in order to quickly facilitate a re-filing of our Form 10 Registration promptly following 12-31-17.

4).  BIG STARS EQUALS BIG PR SUPPORT - We are immensely thankful for the support of BROOKE SHIELDS in helping promote next Friday's launch of "DAISY WINTERS" to theatres.  We have already placed Brooke onto several high-profile national shows - and NEXT WEEK is the Big Kahuna Blitz of publicity appearances for Brooke in support of this HHSE film!  Combined, Brooke's Media Placements in Magazines and her appearances on National Talk Shows will generate over 208-MILLION consumer impressions... which is a level unheard of for most indie releases!  This level of visibility greatly enhances the awareness and enthusiasm for the film, and we hope, for it's ultimate results at theatres, home video, streaming and television.

There are many other things for which we give THANKS - including the solid and patient support of  our SHAREHOLDERS - and the divine intervention of opportunities and blessings that keep steering us in positive and productive directions.

We hope that all of our shareholders have a happy Thanksgiving - a wonderful year-end - and a great new outlook for the exciting year to come.

 Bravo's Watch What Happen's Live - 6-min. segment
 NPR / WBAI Brooke Shields Interview - 7-minutes
 WGN AMERICA Brooke Shields Interview - 5-mins.
 NBC's TODAY SHOW Interview - 4-minute segment
 NBC'S TODAY SHOW Live-Stream Twitter - 20-seconds
 PEOPLE Magazine & SITE photo & caption
 US WEEKLY Magazine & SITE photo & caption
 IN-TOUCH Magazine & SITE photo & caption
 LIFE & STYLE Magazine & SITE photo & caption
 Televisa Brooke Shields Interview - 4-minutes
 I-Hollywood.com Interview with cast - 7-mins.
 PEOPLE MAG & SITE. Brooke Shields Feature Story
 USA TODAY Holiday Edition & SITE - Feature Story
 ABC's THE VIEW - Brooke Shields Guest
 CBS THE TALK - Brooke Shields Guest HOST
 EXTRA! Brooke Shields Interview
 CBS THE TALK - 2nd Day of Brooke as guest host
 ACCESS HOLLYWOOD - Brooke Shields
 30-Second Rotation Paid Ads, CNN (40 spots)
 30-Second Prime-Time Paid Ads T.W. Cable
 30-Secong Prime-Time Paid Ads Cox Cable
 National FB/Instagram/Twitter Paid Ads Reach