Good morning HHSE Friends & Shareholders - as requested, here is a quick recap of activities from yesterday, and the schedule for today.
1). FORM 10 REGISTRATION - If it were easy to do properly, it would have been filed days ago. However, corporate counsel did not feel that some of the disclosures were clear beyond doubt, and that issues of ambiguity only fuel criticism. HHSE did a final polish yesterday, and a few more tweaks are expected this morning. The revised, revision of the third draft with proper formats may be posted to MacReportMedia today. We realize that there is tremendous impatience (enthusiasm?) to get this filed, but we also realize that once it's posted to Edgar, the document cannot be corrected or modified in any way. Having it done accurately, clearly and in a manner that will expedite approval of the registration is our goal.
2). FORM 8 FILING - The Company made a separate Form 8 filing yesterday to MacReportMedia for release onto Edgar. The time-frame is usually one business day. The Form 8 describes some issues that counsel felt should be disclosed prior to the publication of the Form 10. Shareholders are most likely going to be unhappy to learn that a debt conversion transaction - planned for January - was moved to mid-December for several crucial reasons:
a). Company is in receipt of over $1.1-mm in video preorders for February titles. Manufacturing and shipment of these requires access to capital in the form of purchase order financing, accounts receivable financing or factoring - none of which could be finalized until the National Bank of California matter was resolved.
b). Company needed to expedite a payment to Fantastic Films Intl., Inc. matter to avoid a default of the settlement agreement; with only a minimal amount of interest still due, allowing the settlement to default would have been detrimental.
In consideration for the payment of $108,000, JSJ Investments has received approx. 8.9-mm shares. Now, HHSE can promptly conclude the bridge financing needed to get our orders into shipments.
3). IS THE TRANSFER AGENT "GAGGED" - No. As previously disclosed, HHSE is assisting with a current FBI investigation into "bashers" and "manipulators" of HHSE stock. Those of you who have "level 2" visible on your trading platforms can easily see how one particular trader (an extremely vocal and arrogantly confident l I-HUB poster) has gleefully sabotaged the PPS by pursuing tiny "paint-down" trades (some ranging from 13 shares to 400 shares - i.e., $.13 cents to $4.00 in value), then quickly posting a blocking "wall" of 100,000+ shares at an ask that was much lower than the prior ask for the shares. This is a form of stock manipulation often referred to as "boxing" and is used in "poop-and-scoop" schemes to attempt to wear-out the patience of legitimate shareholders in order to sell their stock cheaply to the criminal traders. HHSE is very pleased to have the support of the FBI and the US Attorney's office in gathering the information to prosecute these known individuals and their accomplices. One of the ways that we are helping "track" those seeking non-public information and gather evidence is to save every email from incoming "shareholders" (even the anonymous emails) - and add these to a back-traceable IP log. Another way is that we are asking all inquiries to the Transfer Agent to be made via email so that we have a record of those seeking non-public information. These inquiries to the T.A. can also be matched these against the IP log from the otherwise anonymous posters.
Whenever there are ANY changes to the Share Structure, HHSE will post these within one business day. There's never any reason to contact the Transfer Agent, because such inquiries will NOT result in non-public information.
4). NEW STUDIO LABELS - The Form 8 lists the first two "labels" that have joined forces with HHSE under the Tom Sims label venture. Green Apple Films has an outstanding catalog (over 100 titles) of primarily Christian and Family films, with some "urban" titles as well. The first release from Green Apple will be "DOONBY" - an outstanding thriller and inspiring drama. Checkout the trailer at: https://www.youtube.com/watch?v=m58pFZ6iJNg
Fever Dreams, Inc. is an affiliate of the $10-mm label "Media Blasters" and will be providing action films, martial arts, manga / anime and television programming on a monthly basis. The initial slate of titles from both labels will be announced via a formal press release on Friday.
WILL UPDATE BY DAY'S END.