Greetings HHSE Friends & Shareholders - As promised, today's blog covers the status of some of the new acquisitions, as well as current and pending productions that will fuel revenues and growth for HHSE in 2014. Additionally, there are other corporate / housekeeping and governance items that have been posted on the OTC Markets Disclosure filings from yesterday's Board of Director's Meeting.
Here's a quick recap on key items that Shareholder emails have addressed:
a). WILD OATS - Road-trip Comedy with Shirley MacLaine (and an ever changing list of leads and supporting cast). Per the terms of the agreement with the producers, Hannover House will retain its rights to the film (i.e., North American home video / VOD), until such time (if ever) that the producers exercise their rights to buy out Hannover House. We're happy either way - and will be credited on the film, either way.
b). SHUCK & JIVE - A private investor group has agreed to finance this feature, with Hannover House serving as distributor, worldwide, in all media. Production is planned for June, 2014 with principal photography in Wichita, Memphis and N.W. Arkansas. Principal talent has not yet been signed.
c). MOTHER GOOSE - Pre-production continues to progress on this film; co-production (and financing) partnership agreements prohibit us from unilaterally disclosing more at this time. A formal press update is planned for Sundance in January.
d). THE MOTHMAN CHRONICLES - This creature-feature / thriller is currently in a hold-mode pending a work-out with private investors and the international distribution rights.
e). THE LEGEND OF BELLE STARR - Still in scripting stages; discussion underway regarding "how much dramatic license" can be taken to divert from historic record and surmised truths to tell a more compelling story with this movie?
f). SHADOW VISION - Pre-production will ramp up in January for a shoot in March; second unit sequences have already been shot and transferred to 4k file formats.
AUDIT & CORPORATE GOVERNANCE:
Company is in the process of hiring a new, full-time Controller / Bookkeeper to finish the reconciliation reports required by Hogan Taylor for the audit project. Previously candidates did not meet management's expectations or deadlines... and a recent attempt to utilize an outside accounting agency proved frustrating at best (they have been rarely available to come in and perform the required work); accordingly, the only way to get this finished is to cough-up the bucks for a qualified accountant, on staff, full-time, who understands the audit reporting format requirements. It is crucial to finish the accounting report items required by Hogan Taylor, in order that the audit be completed, and utilized for the Company's Form 10 Registration Filing with the S.E.C. The filing of the Form 10 will automatically elevate the stock to "OTCQB" status, and is expected to provide shareholder comfort and confidence with the Company's results.
The Company is reviewing two financing proposals - each of which would provide an immediate, multi-million dollar cash infusion (without a negative impact to the A/S Equity Structure), and both of which would facilitate access to acquire and release high-profile "studio-level" films. There has been a lot of work over the past six weeks to bring these deals to the table - including a new distribution venture with 20th Century Fox Home Entertainment to accommodate the home media distribution portion of the structure; however, until a deal is done, there can be no assurance that one of these transactions will ultimately close and fund. Accordingly, the Company is pleased to continue on our proven course and business model of acquiring and distributing low-cost, direct-to-video releases and mid-level theatrical titles. With a broadening of Hannover's target "genre" releases (expanding from Sci-Fi / Horror to include Family, Drama, Comedy, Urban and Spanish titles), the Company is well positioned for substantial revenue growth in 2014 - even without one of these extraordinary "brass-ring" type of transformative ventures. There's a HUGE hole in the U.S. film distribution marketplace... the "major-independent" position that was previously occupied by LIONSGATE before they merged with SUMMIT to become (essentially) one of the new, Major Studios. The market contains about six "indies" in the lower-revenue spectrum... and six "Major Studios" in the stratosphere of mega-revenues... with no company occupying the $300-million to $500-million per year "Major Independent" spot. With continued hard work, the right product, and a little luck, Hannover House will strive to reach this position.
... more to come...
Mackenzie Foy, star of "PLASTIC JESUS" and the upcoming Christopher Nolan epic, "INTERSTELLAR."