Welcome to the Hannover House Investor Relations Blog

Saturday, December 6, 2014


 At the request of various shareholders, listed below are updates on some key subjects of interest.

1).           FORM 10 – Final review is occurring this weekend, covering all of the revisions that have been drafted and incorporated into the Form 10 document over the past few weeks.  Schedule wise, the company plans to upload to the S.E.C. by Tuesday;  we do not know how long it might take for the Form to appear onto the Edgar database. However, we will post to this blog the confirmation email from the S.E.C. regarding the filing.

2).           RELEASE UPDATES – Here’s a quick recap of current and upcoming releases, relative to the schedule of key retail placements.

 a)      LENNON BERMUDA - will be a featured CD Music title for Amazon.com during Dec. 12 – 20;  the CD will also be placed into general retail distribution with Walmart, Best Buy and Barnes & Noble for March.

b)      AMERICAN JUSTICE – Initial release into Walmart Canada in October was successful.  Title will hit Walmart USA Stores (and Best Buy) on Feb. 10 – and Redbox on Feb. 17.

c)       DINOSAURS OF THE JURASSIC – Production delays (talent schedules) required that this title be moved to February for Walmart Canada and April for Walmart, Best Buy and Target locations in the U.S.A.  Primary “expert” utilized is Dr. Scott Sampson, otherwise known as “Dr. Scott The Paleontologist” from the hit PBS series, “Dinosaur Train.”  As owner of the film and 95% profit participant, this title is positioned to be extremely profitable for Hannover House.

d)      ON ANY SUNDAY: THE NEXT CHAPTER – The support of Redbull Media House continues to be epic.  The Feb. 10 home video release will be supported with a national TV ad campaign (valued at over $800,000), and tagged with “buy it now at Walmart, Target Stores or Best Buy locations.”  Rarely is the release of an independent video title supported with a national television ad campaign; we’re grateful and thankful that Redbull sees the success of this film and video as being a part of their overall corporate branding. 

e)      THE WEATHER STATION – The planned December release into a single theatre in New York City (specifically, the heavily-Russian neighborhood of Brighton Beach), has been expanded due to an enthusiastic response from Regal Entertainment Group.  There are over 3.1-million self-reported Russians living in the USA, and Regal has found them to be responsive attendees for movies shot in their native land.  The film will now be opening  January 30 in New York, Los Angeles,  Chicago, Philadelphia, Boston, San Francisco, Dallas-Ft. Worth, Detroit, Portland and Seattle-Tacoma.  Opening the film via Regal, Cinemark and Laemmle locations in these markets will make the film “eligible” for a Netflix Streaming contract (which can be lucrative if obtained).

f)       BORRAR DE LA MEMORIA – Also slated for December, but moved into a less competitive window for theatrical screens in February.  Cloud 19 Labs in Los Angeles was able to fix certain technical problems with the 4k master that was delivered to Hannover House, thus enabling the film’s release to proceed.

g)      BLACK EYED DOG – Due to a breakdown in negotiations with the counsel for the production company (including issues of music licenses and their request to significantly increase the advance M.G. that had previously been agreed to), we have removed this title from our Q1 (2015) release plans.  If these deal points can be resolved, we would be pleased to proceed with the release; as predicted the visibility / star-stature of young Mackenzie Foy has benefited tremendously from her starring role in the current hit, “Interstellar.

h)      GABRIELLE – the thriller starring Michael Madsen, will be released in the USA and Canada simultaneously on April 7, 2015 (including Blu-Ray).

i)        GRIM – The revenge film that pits oppressed minorities against corrupt cops, will be released in May.  It’s a timely story in the wake of Ferguson, Missouri  and Staten Island New York, police activities; but May is the fastest release window that we can service for Walmart on this title.

j)        VALLEY OF THE WITCH / SPRING BREAK MURDERS / POSSESSION: THE INGLODA WITHIN and MIDNIGHT HORROR SHOW all have staggered release dates beginning in January (Possession in Canada) and finishing in May with Midnight Horror Show in the USA.

k)      MEDALLION – There will be a separate press release on Dec. 15 listing the first three “label” suppliers for the Medallion Releasing / Multi-Studio Label venture.  The initial new releases under Medallion labels will begin in March, 2015, and we anticipate two or three new release titles each month thereafter;  additionally, one of the supplier studios is turning over their entire catalog (over 100 titles!) for Medallion to represent in the U.S.A.

3).           VODWIZ – The company has signed-up a significant theatrical distributor to the VODWIZ family of supplier studios.  A major effort will be implemented this month to launch this venture;  HHSE Management has been focused on release activities and the Form 10 document, and frankly, the roll-out of VODWIZ has taken a second seat.  However, with the credibility of some current theatrical titles to launch the website and IPTV channel, the consumer roll-out is better positioned for initial success.

4).           CORPORATE FINANCING – The company is working with a Canadian-based investor group to create an asset-based credit facility for general and theatrical releasing costs.  The company is also working with a U.S. bank on a similarly structured credit line, but based on eligible accounts receivable.  The Company is finalizing a settlement offer with the counsel for the National Bank of California (regarding the “All’s Faire In Love” release), which could be very beneficial if completed as presently structured. The Company believes that the Fantastic Film, Intl. matter will finally be fully paid out this month (including the legal fees and interest), and will be seeking a “Satisfaction of Judgment” release from their attorney.

5).           PENDING ACQUISITIONS – Although neither deal is currently “signed,” it appears likely that Hannover House / Medallion will be handling both “VALLEY INN” and “THE ALGERIAN” for worldwide sales.  Both titles will be launched to theatres in February (2015), with home video / V.O.D. dates planned for June and July.  The Company expects the agreements to be finalized on Tuesday or Wednesday of this coming week.  Both titles will be enjoy theatrical release support at a level which will also make them eligible for the lucrative Netflix SVOD license.

6).           PRODUCTIONS – Principal photography has been completed on “WILD OATS” starring Demi Moore, Shirley MacLaine, Jessica Lange and Bill Connolly.  Hannover House controls the USA Home Video rights, with an option to Wild Pictures and The Weinstein Company to “buy out” these rights from HHSE.  THE UNWELCOME” is being retitled (likely to “THE SUMMONING”), and is set for principal photography in February in Louisiana.  MOTHER GOOSE: JOURNEY TO UTOPIA” has received a major private investor funding commitment, which will enable HHSE to move this title into active production mode in February.  LEGEND OF BELLE STARR” is undergoing script changes / polish; it’s possible that this title will be ready for filming in June.  WITHIN SCREAMING DISTANCE” is also set for production in March, but HHSE is only a passive entity with that venture (a presale for North American rights). A major director (and STAR!) have attached to the company’s urban-redemption film, “SHUCK AND JIVE,” with an announcement of all creative elements and schedule planned for early January.  The script for "CLOWN TOWN" reads like a classic horror tale, and we're hopeful to get this film into production in the Spring, with a promo reel ready for the Cannes Market, 2015.

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On a personal note, I want to thank the many of you who have wished me well this week.  I had a somewhat freakish accident Tuesday morning – slipping on ice from my second story deck, and breaking two ribs in my fall to the patio below.  There was some modest internal soft-tissue damage, but I’m finally (as of Saturday!), back to strength and back on point.  It only hurts when I breathe.  But I'm definitely back in action now, and feeling strong.