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Tuesday, May 8, 2018

Update - Much in Progress....

Good morning HHSE friends & followers - this is a critically important week for HHSE on many fronts that will become evident of the next few days as news and announcements are released.

The top three material issues in motion this week include:

1).  CANNES Activities - including VODWIZ information and general sales and licensing activities;

2).  AUDIT / FORM 10 Activities - including completion of the 2016 / 2017 pre-audit package and the current (in-progress) Q1, 2018 report.

3).  DISTRIBUTION UPDATES - from films currently playing in theatres - to home video activities (including those with new distribution partners).

This blog will be updated throughout the day today (Tuesday, May 8).


Sunday, April 29, 2018

Six weeks after launch: Audiences are STILL "Getting Grace!"

Greetings HHSE Friends & Followers - as most of you know, Hannover House launched the theatrical release of "GETTING GRACE" to 60-theatres on March 23.  Now, more than six weeks later, we are pleased to report continued screenings and continuing strong attendance at many of our principal locations.

Last week, the film opened at the ROXY THEATRE in Northhampton, PA.  The film delivered an impressive gross of $5,241 - and has earned a hold-over.  This gross at the Roxy was on WEEK FIVE of the film's release.  Hannover House has locations scheduled across the country so that the film will be playing continuously through the end of MAY... that's TEN consecutive weeks, which is a record for a Hannover House distributed theatrical title. 

Hannover is also showing GETTING GRACE as an Offical Market Screening at the Cannes Festival (on May 15) - so the momentum with international media and buyers will continue to build! 

More to follow...



Friday, April 20, 2018

Quick Updates for FRIDAY, April 20

Greetings HHSE Friends & Followers - As requested, here are some quick UPDATES on various issues.

1).  ALTERNATIVE CINEMA - Our first "Alternative Cinema" promotion is for DEATH HOUSE.  On Wednesday, May 9th, approximately FORTY (40) theatres in major markets across the country will be showing DEATH HOUSE as a Featured Event... one showing only.  The strategy behind this plan is that the horror fans in each community may be attracted to the "call to action" to see it at that time while the opportunity exists... and thus cramming potentially a week's worth of ticket sales in to one big night.  The additional benefits of this Alternative Cinema special events strategy is that it reinvigorates consumer and exhibitor interest in the movie... as well as helps HHSE meet benchmarks required for qualification with Netflix and Sony Home Entertainment.  DEATH HOUSE will also open on Friday, May 4th in:  PHILADEPHIA, ORLANDO, TAMPA-ST. PETERSBURG, MIAMI-FT. LAUDERDALE and JACKSONVILLE, FL.  Later (during the month of May)  we intend to do similar openings with BLOOD FEAST and GETTING GRACE.

2).  ANNUAL ATTORNEY'S LETTER - As we have done for the prior eight years, the company plans to post the annual "Attorney's Letter With Respect to Current Information" to the OTC Markets on or before the April 30 deadline.

3).  AUDIT PERIODS - The periods covered by the Form 10 Registration audits include Q1 (2018) to give the filing a very wide comfort range for freshness of audited information. As many of our shareholders know, the audit periods cannot be aged more than 135 days or potentially be rendered stale.  The 12-31-2017 period would therefore lose eligibility as of about May 15. While the Form 10 is expected to be filed as of that date - to give the audit periods longer currency, we have added the Q1 (2018) period as our most recent filing.  This will put the audits well under the aging date, even with the potential 60-day S.E.C. review period after filing of the Form 10.

4).  FIRST LOOK TEASER - BEFORE THE "TEASER" IS COMPLETED!  Some shareholders are interested in seeing some footage from HHSE's just completed original feature production, "THE RIOT ACT."  While the Cannes Teaser Trailer is still undergoing SOUND MIX tweaks and COLOR-CORRECTION issues, here's a sneak-peek just for HHSE longs to enjoy:

https://www.youtube.com/watch?v=FQSl0dXWNzY

(New Link updated SUNDAY, April 22 - as some shareholders were unable to view the previously posted Dropbox link). 

The polished Teaser Trailer will be posted to YouTube and used as an embedded teaser on a variety of film and theatre sites.  It will also be used to help drive media and buyer attendance at our Cannes Market World Premiere Screening of "THE RIOT ACT" - occurring on Wednesday, May 16 at the Palais Des Festivals in Cannes, France. The HHSE distribution networks were a key component to trigger the financing for this film, which was shot in N.W. Arkansas in November and December (Van Buren, Fort Smith, Springdale).  HHSE key managers, ERIC PARKINSON and FRED SHEFTE are the exclusive Executive Producers of the film - which also enjoyed over $1-mm worth of "in-kind" services and benefits from local and state incentives. The movie is a PERIOD-THRILLER which can be marketed both as a Thriller and as a Western-era feature.

5).  BARNES & NOBLE and HUDSON STORES - BOTH INTO "REORDERS" OF QUIETUS!  The Feb. 27 release date of the new Quality Trade Cover edition of "QUIETUS" has been selling well... with two of the top three chains already placing sizable re-orders from our wholesale distributors. There will be an ongoing promotion throughout the summer at Barnes & Noble, and a late summer release of this item into the U.K. and Ireland book markets.


6).  STOCK VOLUME ON THURSDAY, APRIL 19 - As clearly tracked by several longs and traders, the majority of shares traded yesterday (over 5-million) appear to be self-dealing "wash trades" sold between accounts as a ham-handed attempt to create a false narrative that the HHSE stock price was tanking. We have provided all of the day's detailed trading data to the FBI special crimes investigator handling the criminal case against the KNOWN stock trashers and manipulators.  Yes, we know exactly who these people are, despite their efforts to hide behind anonymous I-Hub pseudonyms (that they invent every few months / years). They may think that there will never be a day-of-reckoning, but they will be unpleasantly surprised! 

Meanwhile, with AMAZING and MATERIAL events now in motion for Hannover House, they are pulling out all stops to TRY to create panic, fear and a FALSE narrative against the company and its officers.  While the 1st Amendment to the U.S. Constitution does allow for Free Speech, it does NOT protect someone from saying KNOWINGLY FALSE information, especially when coordinated with an illegal activity (such as "boxing" a stock for financial gain). There is a separate, Hannover House funded Civil Action that has been in the drafting and documentation stages for some time, awaiting "the right time and circumstances" to file and launch. 

* * * * *

NOW - here's a blast from the past from recording act TIMBUK 3:  "The Future's So Bright... I gotta wear Shades!"

https://www.youtube.com/watch?v=8qrriKcwvlY


HAVE A GREAT WEEKEND !




Monday, April 16, 2018

General Updates - Monday, April 16, 2018

Greetings HHSE Friends & Followers - Quick Blog Update on a few items of interest to some of our shareholders.

1).  PRE-AUDIT PACKAGE (2016 / 2017) - outside CPA activities to compile and conform to our auditor's formatting standards is still in process... delayed by only a few days for annual tax client filings.  Prepayment of Form 10 activities (outside CPA, Library Valuation and basic audit) will assure that the registration process moves quickly over the next few weeks.

2).  CANNES SCREENING SCHEDULES - Four HHSE / Medallion titles have been accepted for official market screenings at the Palais Des Festivals.  DEATH HOUSE and THE RIOT ACT will screen on May 15;  GETTING GRACE and DAISY WINTERS will screen on May 16.  Major international buyers are confirmed to attend these screenings, including some of the European representatives from Sony Pictures International.

3).  LEGAL UPDATES - Although HHSE has not been served, we have been informed of legal filings made by Uptone Pictures (UNION BOUND) and an unknown affiliate of Crimson Forest. On the surface, from the information received, both appear to be completely without merit and of the nature in which our counsel will be able to move for dismissal.  Once served, HHSE counsel will reply and move for dismissal, as well as the possibility of sanctions and fines for the filing of baseless, nuisance litigations as an abuse of service to the court.

4).  ALTERNATIVE CINEMA VENTURE - Working closely with five major theatre circuits,  HHSE has structured a new and unique strategy for theatrical distribution of films that we are calling "Alternative Cinema."  A formal press announcement will launch this week (likely Thursday or Friday), detailing how movies such as "SPICES OF LIBERTY", "DEATH HOUSE", "BLOOD FEAST" and even "GETTING GRACE" can reach over 100 theatre locations under a cost effective means that is designed to drive special event attendance.

5).  VIDEO REPLICATION - HHSE / Medallion are in discussions to move a portion of video manufacturing (DVD / BluRay) over to SONY DADC in Terre Haute, Indiana - in order to more efficiently service physical release titles that are being handled for the Company by Sony Pictures Home Entertainment.  For the past four years, HHSE has been utilizing Encore Media Services (aka "Signature Media") in Valencia, CA for all video manufacturing; the move over to Sony will only be for specific (Sony-distributed) titles.

6).  CURRENT / ONGOING THEATRICAL ACTIVITIES - "GETTING GRACE" continues to add new markets. Openings last week in the greater Salt Lake City metro are all being held-over.  New markets for this weekend as we as 4/27 include Dallas-Ft. Worth, Saginaw, MI, and Bethlehem, PA. Markets this weekend for "BLOOD FEAST" include Minneapolis-St. Paul and St. Louis.  "DEATH HOUSE" is off-screen this weekend and on 4/27 - but will launch under the Alternative Cinema venture the first week of May.

7).  PRODUCTION UPDATE - Principal photography for "LAST CHANCE" is being scheduled for mid-September in Fayetteville, AR, in order to accommodate the availability of a major star to play the lead role.  "THE RIOT ACT" edit is now completed and is now in final scoring and mixing in time for the Cannes screening on May 15.  Finance meetings regarding the bigger-budgeted "MOTHER GOOSE: JOURNEY TO UTOPIA" will continue at the Cannes market in May, which HHSE feels could be more fruitful now with Sony Pictures Home Entertainment as the USA distribution partner.

More to follow...  onward & upward!!



Wednesday, April 11, 2018

HHSE - MEDALLION - VODWIZ Plan for Cannes Market 2018

Greetings HHSE Friends & Followers - with mid-April at hand, the plans for the Company's annual presences and activities at the Cannes Film Festival / Marche du Filme rise to the forefront of core activities.  This year will see a three-pronged presence at the market, highlighted by these principal endeavors:

1).  FORMAL LAUNCH OF VODWIZ STREAMING PORTAL - the Beta Site (500+ titles) is expected to be live in May, so this will provide the ideal forum for HHSE / VODWIZ to meet with program suppliers from around the world to discuss their participation in this digital streaming mega-store.  A two-sided 8-1/2 X 11 flyer now in design, will describe the VODWIZ portal business model, and a standard (boiler-plate) participation agreement will be on hand.  


As we get closer to the Cannes Market (May 8 - 19), the Company will have a better idea of primary supplier appointments, and can set a target for additional programming to recruit for participation.  At present, fourteen principal suppliers representing over 10,000 feature films (and television episodes) are already committed to the VODWIZ streaming model.


2).  GENERAL ACQUISITION ACTIVITY - Cannes remains the preeminent marketplace for high-end titles (films with major stars and significant commercial release value). There are other major film festivals, specifically Venice, Toronto and Sundance. However, all of the major producers and suppliers worldwide attend the Cannes Marche du Filme, making it a one-stop market for companies like HHSE to see the entirety of suppliers and available programming for the next year. 


3).  INTERNATIONAL SALES OPPORTUNITIES - This year, Hannover House / Medallion will be representing FOUR new release theatrical titles for worldwide sales.  Each of these four films will have an official Market Screening at the Palais Des Festivals - and will be supported with display ads in the principal industry trades, plus email solicitations to international licensors and direct outreach to principal buyers in the top fourteen key territories (AUSTRALIA-NZ, BENELUX, CHINA, FRANCE, GERMANY, ITALY, JAPAN, KOREA, POLAND, PORTUGAL, SCANDINAVIA, SOUTH AFRICA SPAIN, UNITED KINGDOM). Direct licensing of these titles will generate sales commissions for HHSE / Medallion as well as assist with the recoupment of USA Theatrical P&A costs and direct payments to program licensors.  Films set for Palais market screenings are:


DAISY WINTERS, GETTING GRACE, DEATH HOUSE and THE RIOT ACT (World Premiere)
















Sunday, April 8, 2018

BLOOD FEAST launches in Beverly Hills - Fans Consume the Red Carpet Smorgasbord!

Greetings HHSE Friends & Followers - The long-awaited theatrical debut of BLOOD FEAST launched this past weekend at the prestigious Laemmle Fine Arts Auditorium in Beverly Hills, CA. The Friday night evening show was preceded by a red-carpet media event, featuring cast, crew and notable film industry celebrities.

HHSE C.E.O Eric Parkinson was joined by BLOOD FEAST producer Dominik Jurczek and director Marcel Walz.  The special event was supported by an impressive entourage of national media attendees and specialty horror publications.

The film opened to $4,020 on this single screen - which is more impressive considering that the engagement was a "split" with another movie (SHELTER) in which each of the two films were limited to one screening per day.  HHSE feels that the media support for the launch - and the solid box office performance from only three screenings - will position the film for expansion to other theatres and markets over the next four weeks.

Stay tuned for more theatrical release updates this week on BLOOD FEAST, GETTING GRACE and DEATH HOUSE.


Josh Brolin, Caroline Williams, Robert Rusler

The Cast prepares to CONSUME director Marcel Walz (Left-to-right: Liliana Nova, Caroline Williams, Robert Rusler, Sadie Katz - seated, Marcel Walz).


Robert Rusler is interviewed for Entertainment Tonight.

Group shot of some cast, crew and celebrity supporters.

Malek Akkad (producer of the "Halloween" Franchise) with wife, Angelina. 

Tiffani Fest, Joe Quintanilla, Suze Lanier-Bramlett


Tuesday, April 3, 2018

Countdown to Form 10 Filing - Update on Status & Analysis

Greetings HHSE Friends & Followers - Over the past few years, the Company has gone through cycles of having tremendous focus and effort expended on the filing of the Form 10 Registration Statement - followed by periods of relative inactivity on the subject, due to a wide range of distractions or conflicting corporate priorities (i.e., months of time lost during a protracted corporate merger, time lost due to management focus on new releases or new distribution partnerships, momentum lost due to cash flow obstacles from defaulting customers and "estimated tax liabilities" from the IRS, etc., etc.). 

The on-again, off-again cycle of movement towards registration has been like riding atop a jerky steam-engine, which has spasmodically shaken some shareholder's off the train, while leaving the remaining passengers (shareholders) queasy at best. 

Recently, a very long-standing and faithful shareholder posed a heartfelt question to Parkinson and Shefte.  "Do you guys REALLY want to do the Form 10 Registration? It seems like it is often not among your top priorities."  

The answer we provided to him clarified our management position on the subject and hopefully will illuminate to our remaining shareholders the vision, rationale' and expectations we see within our collective reach. We hope that you will take the time to read this management summary in order to better understand the process and plans.

WHAT ARE THE SHORT-TERM AND LONG-TERM BENEFITS TO THE REGISTRATION?

1).  CREDIBILITY - As most HHSE longs know, the "unaudited" status of the majority of HHSE's prior filings has provide fertile ground for a small but vocal handful of stock critics. For eight years, their chorus of "impending doom, any minute now... just wait... just wait a bit longer, hold on, it's coming," has in it's own ironic way mirrored the failure of HHSE management to promptly finish the Form 10 registration. So, management understands that we have inadvertently empowered the critics to think (or state) that the Registration filing will  never happen. However, keep in mind that the delay in the Form 10 filing has been the ONLY prediction that the naysayers have gotten right. That said, this one and only temporarily correct critique is about to move over onto the stock critic's extraordinarily long "WRONG" statements column, which will give them a perfect 100% ALWAYS WRONG rating. Audited financials are credible financials. Whether you like it or not. Period.

2).  UPLIST TO OTC:QB  - The next natural step following registration is an automatic move of HHSE changing its annual subscription with the OTC Markets from "Pink" to QB.  This more-prestigious trading platform is not only more credible to investors, but is also a threshold requirement for MANY forms of investors  and institutional shareholders.

3).  INFUSION OF NEW SHAREHOLDERS - There is a significant list of individuals, funds and investment groups that have been observing and following HHSE for years (and communicating frequently with Hannover House as to their interest). We're not talking about "toxic lenders" of the sorts like TCA or JSJ that function as neither legitimate investors nor lenders but are instead operating on the fringes of securities and usury laws by structuring inflated stock conversion ventures.  No, we are talking about legitimate, high-net worth individuals and "whale" funds that see an EASY step to pop the HHSE stock to north of $.10 per share, prior to the implementation of more sophisticated investment tools (ranging from multi-million dollar lines of credit to direct stock purchase ventures).  FOR INSTANCE - with HHSE at $.10 per share, an investment group pursuing a direct-stock purchase of 9.9% equity,would be buying approx. 80-mm shares for a payment directly to HHSE of $8-million. That would be an $8-million cash infusion that could be used to grow operations and revenues, and to clean-up the Company's balance sheet debts, perhaps negotiating substantial reductions in exchange for cash in some cases (most of which were already  discussed with major creditors during last year's protracted Crimson Forest merger effort). 

Please note that we are NOT saying that the Company definitely will obtain a multi-million dollar line of credit under attractive terms post-registration... and that we are NOT saying we will be issuing any new stock at all once the HHSE price hits $.10 per share. But we want it to be clear to our shareholders that these options would exist after a registration filing followed by the infusion of new shareholder capital on the open market.  It's a powerful position that is obtainable for the Company... and one that does not currently exist as a Pinksheets-listed equity.

4).  SHARE LIQUIDITY AND EXCHANGE - Once registered, the Company's shares can be moved to electronic trading platforms (DWAC / DTC) for simplified deposit of shares and trading eligibility for many larger funds and brokerages.

5).  PERSONAL BENEFITS TO HHSE MANAGERS - Suppose for a moment that you are one of the principal managers of HHSE, putting in 18+ hours a day for 10+ years and almost zero salary. What is your incentive and upside?  Selling a few-million shares every four years for $.01 each?  Wouldn't Parkinson and Shefte be WAAAYY better off if they never had to sell ANY of their HHSE shares in order to obtain some of the benefits that could be gleaned from a registered equity?  If the registration creates greater access for investors and more become shareholders, the HHSE stock price will appreciate significantly, and with it, the value of the management-owned shares. Which is better to own: 50-million shares at $.015 each or 50-million shares at $.15 each?  Clearly, HHSE Managers will benefit alongside all other HHSE Shareholders as the registered equity appreciates to its actual value.

6).  THE END OF THE FALSE PROPHETS - The small chorus of the HHSE doom squad will have to move to another chat-board to spew their venom with any impact. The new volume of HHSE investors with massive buying power will reduce all criticisms to that of an inaudible mosquito buzz.

7).  THE ABILITY TO LEGITIMATELY ACQUIRE MAJOR VENTURES - Once fully registered, the next obtainable step is to consider another uplist to NASDAQ - as well as to also consider acquiring complementary companies that will work in synchronicity with the HHSE / VODWIZ goals and business model for growth.

... and lastly, the Form 10 Registration is important because it's important to a majority of the HHSE shareholders.

THAT SAID, the next questions posed to management often are:

a).  Are you proceeding?

b).  Is it all happening RIGHT NOW?

c).  Is the filing of the Form 10 something that is likely to happen SUPER FAST, but definitely during the current calendar quarter?

The short answer to all three questions is YES.  The longer answer is that we have completed our management folders (which are the detailed schedules, summaries and back-ups to the financials), we have completed the new library valuation, and we are days (not weeks) away from presenting the full 2016 and 2017 audit-kit years to our PCAOB auditors.

HHSE / VODWIZ is going to the Cannes Film Festival and Marche du Filme on May 9th - to not only look for new films that are conducive to the Company's core business plan (of acquiring and releasing quality theatrical films that will work for the Sony Pictures Home Video and Cinedigm models) - but also to present the live (published) BETA site of the VODWIZ portal and to sign up additional program suppliers to participate in that major endeavor. With Amazon Digital providing VODWIZ with backroom operational functions, digital streaming and consumer payment / financial management - (including real-time access to transaction details and payments) - the HHSE / VODWIZ management focus can be on acquiring quality content and building subscribers and per-transaction customers.

VODWIZ can quickly become one of the top streaming portals and OTT Channels in the world, offering (literally) thousands of feature films and hundreds of hours of episodic television programming direct-to-consumers (and via both a per-transaction sale basis or a monthly "all you want to watch" flat subscription fee). With producer sentiments worldwide beginning to sour on the deals now available for content owners from Netflix, Hulu, Amazon Prime and other licensors and portals... the timing to announce a "new V.O.D. storefront" for the placement of film libraries is as perfect as the current moment is for HHSE to file our Form 10 Registration. 

Two projects of epic consequence and material value.  Both in motion. Both happening now. 

So, yes, dear shareholders: HHSE management has a renewed focus to complete the Form 10 filing as it is clearly a foundational step to enable the Company to quickly (and more easily) achieve great results. Stay tuned, but you won't have to stay patient much longer.

* * * * * 

ON A PROJECT-RELATED NOTE:  "GETTING GRACE" writer-director-star DANIEL ROEBUCK is currently in N.W. Arkansas to help promote the HHSE release expansion of the film to additional theatres this Friday.  Roebuck spent time today at the HHSE corporate offices - meeting with Parkinson, Shefte, Desiree Garnier, Maryevelyn Jones, Jon McCallum - and later visiting local sites, meeting with fans, and conducting TV, RADIO and NEWSPAPER interviews.  Roebuck has another full day tomorrow (Wednesday, April 4) - ending with a screening of the film at the Malco Razorback Cinema - in the 162-Recliner Theatre One.  Here's a few snapshots from today: