Good Afternoon HHSE Friends & Shareholders - As requested, listed below are some items not covered in the Board of Directors meeting as posted today on the OTC Markets site.
1). Status of "Yield" Sign on OTC Markets -- The Company has fully complied with the disclosure filings for "Current Reporting" status, but is missing the Attorney's Letter stating as much. The Securities Attorney that will be posting this letter is currently working on the Corporate Financing documents listed in the Board of Directors Minutes, so it will be a couple of more days before the Attorney Letter is posted (at which time, our designation should return to "Current" / Fully Reporting Pinksheet status).
2. Status of Audits -- We've had a very positive development with respect to completing the 2011 and 2012 audits (note, that we have moved the covered years to reflect "the two most recent, full year periods" as required under EDGAR rules). Suffice it to say that our biggest obstacle in providing satisfactory support for H-T has been resolved to satisfaction. We will not "forecast" the release date of the audits (and the simultaneous filing of the Form 10 Registration Statement with the S.E.C., which is otherwise already completed); we'll just do it, then say, "Aha! Go check it out!"
3. Distribution Ventures / Pacts and Personnel -- The Company has mentioned that there is a venture being structured under which Hannover House would form a "multi-studio distribution pact" with two (or three) other independent suppliers. The goal of such a combined marketing presence would be to lower our cost-of-sales, while increasing our unit-sales penetration and customer base. The determination of the value of such a pact was long-in-the-process, and based in large part by management's dissatisfaction with the placement rates being achieved by outside sales representatives. One of these outside, commissioned-sales representatives, Tony Perez, has since accepted a full-time position with Origin Films. In 2011, Mr. Perez licensed his library of horror films and urban features to Hannover House (which 36 titles the Company has not yet started marketing), and subsequently worked as a commissioned, non-exclusive sales representative for the Company. We wish Mr. Perez well, and hope that his new employment with Origin generates mutually satisfactory results. Under the new Hannover House (multi-studio) distribution venture, there is no more opportunity for commissioned, outside or non-exclusive sales representatives. In respect of the confidentiality of the multi-studio distribution pact at this time (one of the other three primary studios is also publicly-traded), the formal announcement of this sales venture will be withheld until possibly as late as August (which is the first month during which "new release" shipments will be handled under the new mutli-studio distribution pact).
4. The Lion Prince -- Can't contain our enthusiasm for the acquisition of this amazing, $20-million dollar live-action / African wilderness adventure. The stars (two, young African children) are outstanding, and the story and message in the film is inspiring. Hannover House is looking at various release date opportunities, but has initial sites set for late January, 2014 (to be "on retail shelves" during February's Black History Month). Stay tuned!