Welcome to the Hannover House Investor Relations Blog

Friday, October 21, 2016


BOOM!  BOOM!  BOOM!  Three out of the four screens showing SPICES OF LIBERTY tonight at the Carmike Park Place 16 theatre in Raleigh, NC (Morrisville) are 100% SOLD OUT already!

Why is this film launching FIRST in the Raleigh market? Well, there is a large and responsive South Asian - Indian community in the greater Raleigh metro, due to many high-paying and technically skilled jobs in the "Research Triangle" and many area universities.  Also, this is where most of the movie was filmed, so there is an accessible audience from cast, crew and awareness. The strategy of launching to a solid initial theatrical result - has worked well for other distributors who find greater receptivity and enthusiasm for expansion dates after a film has some degree of momentum.



Yikes!  What do you do when your SPICES OF LIBERTY opening night event has 484 tickets pre-sold for an auditorium with only 199 seats?

Well, if you're the Carmike Park Place 16 in Raleigh (Morrisville, NC), you ADD THREE more Screens!

Accordingly, SPICES OF LIBERTY will open tonight on FOUR screens at this Carmike location, with a total seating capacity of approx. 655.  For the remainder of the opening week run, the film will be moved back to a single auditorium with 199 seats.

But hey, this is a GREAT problem to have!  Go HHSE!!!


Thursday, October 20, 2016

HHSE - TCA Settlement Update

Good morning HHSE Friends & Followers - As is often the case on the 'eve of a potentially contentious court hearing, the attorneys for TCA and Hannover House have reached a preliminary settlement of the matter.  In order to finalize the terms, the hearing scheduled for today has been continued to a later date.  Both parties expect to reach a resolution and documented agreement within a week, at which time, the court matter will be fully retired.

No, for those of you wondering, the pending settlement does NOT require further dilution of the HHSE stock; however, both parties have agreed to keep the terms confidential at this time.


Friday, October 14, 2016

Form 10 Requirement mandates Stock Structure Filing

Good morning HHSE Friends - as most of you know, Hannover House has not issued any shares in over a year, and we do not have any plans to issue any more shares.  That said, both Parkinson and Shefte have the "option" to call on the reissuance of surrendered shares... yet there are no additional Authorized Shares still available under the existing share structure at 800-mm.  Accordingly, and under advice of counsel to avoid an S.E.C. comment on our Form 10, we have INCREASED the "authorized" shares from 800-mm to 900-mm.  However, this is NOT because we are issuing shares to ourselves or any other entity.  This move has been taken to create the "availability" of shares in the event that the existing reissue rights are exercised.  As those in the know will recognize, as officers and managers, Parkinson and Shefte are restricted from selling shares, except in special circumstances and in small quantities.  So there is no benefit to either Parkinson or Shefte in "calling upon" the reissue option to receive back shares that were previously surrendered into treasury.  Regardless, the Form 10 advisor has instructed us that the absence of availability will create a comment / issue with the Form 10.

For any short-sellers that might get all excited and think "ooohh... there's going to be some cheap shares soon," we have bad news for you.  Having the "availability" of shares does not mean that we're going to break our streak and issue more.  "Debt Conversion" deals are functionally impossible to do anymore under the enhanced compliance restrictions recently mandated by the S.E.C.... and HHSE has been managing our payables adequately without doing any debt-conversions for the past 15-months.  Additionally, and notably, neither Parkinson nor Shefte have any way to benefit from the issuance of previously surrendered shares... in fact, the reissuance of shares to Parkinson and Shefte may trigger personal tax liabilities.  Accordingly, this filing move to create A/S 'availability' will not create any dilution of trading shares into the marketplace.

Wednesday, October 12, 2016

Spices of Liberty - Launches to Theatres Beginning OCT. 21

"SPICES OF LIBERTY" - a romantic comedy acquired by Hannover House during the Cannes Film Festival this year, will open in theatres across the USA, beginning with a premiere event next Friday (Oct. 21) at the Carmike 16 in Morrisville, NC.  The film has been described as an "Indian version of 'My Big Fat Greek Wedding'" in its cross-cultural appeal and comedic situations.

"Films that appeal to Indian audiences have proven to be among the highest grossing independent titles at USA theatres over the past few years," said Eric Parkinson, C.E.O. of Hannover House. "We found 'Spices of Liberty' to be enchanting and appealing to a broad audience. So we're enthusiastic about the premiere launch and the subsequent expansion to major cities across the U.S.A."

The film stars Suhasini Reballa, Ajay Kumar and Prakash Patil.  Principal filmmakers include Gowri Goli and Supriya Goli for Priya Creations. The film chronicles the budding romance between two second-generation Indian youths living in America and struggling to balance their cultural histories with modern Americanized practices.  Ultimately, good friends good food and good times lead to romance, and proves the popular saying that "Love is a Dish Best Served Hot!"

“Enchanting, romantic, comedic and fun!”

– Le Film Francais (Cannes Festival 2016)

“A delightful, cross-cultural comedy”

– Screen International (Cannes Festival 2016)

STARRING Suhasini Reballa Ajay Kumar Prakash Patil Scott Bailey Robert Angelo TJ Cawley CASTING DIRECTORS Murty S Swahari COSTUME DESIGNER Supriya Goli
Surekha Patlolla EDITOR Srinivas Varaganti PRODUCTION MANAGMENT Subhash Singh Murali Lagisetty Supriya Goli ORIGINAL SCORE M S Chandra DIRECTOR OF PHOTOGRAPHY THOMAS SCOTT STANTON LINE PRODUCER MICHELLE CAMERON CO-EXECUTIVE PRODUCERS Shan Saravanan Gowri Goli PRODUCERS Vinod Jindal Nagarjuna Yerra Supriya Goli Valli Prasad Kodali WRITTEN BY Gowri Goli Chandan Dash Supriya Goli Ezhilarasan (Hari) Irulappan Jalandar Reddy Lakshman Kannappan Prasad Kommaraju Suri Vulumuri

Arkansas Incentives will help fund "Big" Pictures for Hannover House to Distribute

Hannover House and Medallion Releasing will be the worldwide distributors of four new feature film productions, being produced in the State of Arkansas, and utilizing three separate incentive and rebate programs for financing.  Based upon eligible expenditures, up to forty-two percent (42%) of some of these production budgets may be provided through rebates by the State of Arkansas.  For a movie such as "Mother Goose: Journey to Utopia," these incentives are expected to exceed two-million dollars (USD $2,000,000).

Watch this blog for more updates on the specific films, budgets, casts and schedules.

* * * * * * * * * *

Hannover House to Benefit from State of Arkansas Incentives

Oct 12, 2016
OTC Disclosure & News Service
Fayetteville, AR - Hannover House, Inc., (OTC: HHSE), a N.W. Arkansas based film and video distribution company, will be the beneficiary of a variety of film and industry financial incentives from the State of Arkansas, the company reported today. Four feature film productions, each being produced through special purpose, Arkansas entities, have received preliminary approval for state incentives subject to a customary post-production audit verification for each film.  All four of these films are slated for worldwide distribution through Hannover House and Medallion Releasing, including theatrical release, home video, video-on-demand, television and international licensing.
"We have waited patiently for over ten years for the Arkansas Film Incentives to reach the level of being not only competitive with other states, but in many instances, better," said Eric Parkinson, C.E.O. "The Film Incentives program, combined with a rebate for Arkansas employees and entities, and additional incentives for new technologies and industries collectively provide a greater benefit to these productions that we feel could be obtained in any other state. By keeping these productions within Arkansas, it will enable us to help accelerate the growing infrastructure of facilities, equipment and competent crews," he concluded.

Hannover House has been active in film distribution since 2002, when the book publishing company added DVDs to its product lines. The company became more active in theatrical distribution in 2014 in response to the maturing market for DVDs and the retail and consumer preferences towards higher profile, theatrical titles.  Although Hannover House has been involved in several feature film productions over the years, the new slate of films to be produced in Arkansas represent an enhanced involvement in all phases of the productions, from the screenplay to theatres.

"The worldwide entertainment market is maturing and evolving" said Fred Shefte, President of Hannover House.  "We need to look at the areas of growth within the entertainment industry, and focus our efforts on reaching those markets.  As DVD and BluRay sales have flattened or declined, we have stepped up our activities into the theatrical and video-on-demand arenas  Our current involvement in the development and production of original feature films is in response to the need for higher-profile films for theatres, and the realities that in most cases, producing such films is more cost-effective than hoping to license completed, higher-end films from the festival circuits."

Tuesday, October 11, 2016

State of Arkansas Production-Financing Rebates Triggers Local Media Coverage for HHSE

Greetings HHSE Friends & Followers - HHSE's involvement in four feature films during Q4 (2016) caught the attention of business writers tracking rebates and activities under the State of Arkansas Film Incentives program (and media rebates).  Although only "Mother Goose" has been specifically identified in the media as one of the State of Arkansas rebate productions, the other three features are also generating buzz at both the State House level, as well as within the Northwest Arkansas business community.  Add to this activity our move to impressive, executive office suites at 300 N. College, and the combined impact is a lot of local enthusiasm.

As disclosed recently, we have outgrown the office-warehouse combo location in Springdale, where we've resided since March, 2008.  Most of the current office space is for warehousing, which has been moved to off-site fulfillment (for far lesser costs), and with the company focused more on theatrical activities and production of higher profile films, moving to higher-end offices (instead of staying in a warehouse district), seemed like the right move based on these changing, growing and improving circumstances.

By the way, in a semi-related matter to our office location - some shareholders have asked why over 4-million of our DVD boxes list the address for Hannover House as being:  1722 N. College Ave., Fayetteville, AR  72703.  Yes, that's a UPS Mail Box location that the company has maintained as the repository of mail for 15-years.  It's our primary mail address, and always has been since 2001. So - why have a UPS store mail box as the "public" address?  It's because of well-intended "drop-ins" of people that want to pitch us on their "brilliant" (!!) movie ideas, or "audition" in our lobby... and many of these uninvited guests have been surprisingly insistent on seeing Parkinson and Shefte, unscheduled, to play their Ukulele or show us their Michael Jackson moonwalk move.  Drop-ins became so problematic that when we moved to Springdale in 2008, we purposely did NOT put up a SIGN on the building, and we did NOT change the address on all of our DVD packaging from the UPS Store mail drop.

Anyway, for those "in the know" (or who are NOT dispositionally insistent on promoting non-existent, alternative realities), we're very excited about the current distribution activities, the upcoming theatrical slate, the current "upgrade" of office facilities and the corporate governance filings for HHSE.  Now that our "current" status has been restored with the OTC Markets, you will begin seeing a lot more media coverage.

Hannover House Releases Movies to Theatres First
(Reprinted by permission of the Northwest Arkansas Business Journal / Oct. 7, 2016)

Eric Parkinson, right, CEO of Hannover House Inc., attends the final mix of feature docudrama "Bonobos: Back to the Wild" in Los Angeles, along with, from left, sound recordist Rob Chen, film producer Vivian Schilling of Fayetteville and sound mixer Kami Asgar. Hannover House co-produced the movie with MC4 of France, released it to theaters in 40 U.S. cities and will put it on DVD and Blu-ray in January.

Media distributor Hannover House Inc. of Springdale recently shifted its focus to releasing movies direct to theaters instead of DVD.
With its new venture, Medallion Releasing Inc., the company has started to release higher-quality films to theaters, enhancing its sales to home video, streaming services and television, said Eric Parkinson, chief executive officer for Hannover House. He partly credits the sales increase to “the visibility and credibility that theatrical titles enjoy over direct-to-video titles.”
Another strong shift in its business model is the production of original feature films.
“Arkansas has several beneficial ‘rebate’ incentive programs for original feature film productions,” Parkinson said.
Hannover House is working on a major movie, “Mother Goose: Journey to Utopia,” starring Samuel L. Jackson and Shirley MacLaine. Filming is expected to start in Northwest Arkansas in January, and the movie might be released as early as November 2017.
Also, the company started VODWIZ, a channel for streaming media, and will be similar to internet streaming sites such as Netflix or Amazon.
“Our business plan for VODWIZ is to have the largest catalog of independent, foreign, esoteric and art films available for digital streaming,” Parkinson said. The channel is expected to be launched to consumers in January when it will have more than 1,000 titles available.
The company started as a book publisher in 1993, and when it moved to Northwest Arkansas in 2002, started selling independent films on DVD.
“The DVD business was robust from 2002 until 2008, at which time consumer trends started shifting away from ‘independent’ films and DVDs toward bigger-budgeted theatrical titles and alternative forms of delivery, such as streaming directly to homes,” Parkinson said.
The company continues to publish books, but at a more targeted level, selling to retailers such as Barnes & Noble Booksellers Inc., Hudson Group Retail LLC and Books-A-Million Inc. It is slated to release four book titles in 2017.

Hannover House Moving to Fayetteville
Media distribution company Hannover House Inc. is in the process of relocating its corporate office from Springdale to Fayetteville, CEO Eric Parkinson said.
The move to the Today’s Bank building at 300 N. College St. comes after the company secured high-profile actors Samuel L. Jackson and Shirley MacLaine to star in “Mother Goose: Journey to Utopia,” which is expected to start filming in Northwest Arkansas in January.
“We’re stepping up our game,” Parkinson said.
Parkinson expects the move from 1428 Chester St. in Springdale to be completed by mid-October.
“Mother Goose: Journey to Utopia,” will cost $5.5 million to produce, Parkinson said.
Hannover House acquired rights to the script five years ago, and the movie has been in the works ever since.
The company attracted the interest of MacLaine and Jackson because “the material was strong, and both actors are represented by the same agent,” Parkinson said.
After MacLaine became interested in the movie, MacLaine’s agent, ICM Partners, who also represents Jackson, recommended him for a part in the movie.
“It’s a high-profile film as far as stars,” Parkinson said. It’s also “low risk” in that it will be produced in Arkansas, he said.
“Everything here is more affordable."