Welcome to the Hannover House Investor Relations Blog

Friday, June 26, 2015

HHSE achieves Epic Milestone in DVD Distribution

Good Afternoon HHSE Friends - as we close on another stellar Quarter, it's notable to report that HHSE has achieved a milestone that is potentially unprecedented in the indie-DVD distribution business. At this time, there are fourteen (14) active sku's at Walmart for HHSE and Medallion products. This is further evidence of the validity of the company's expanded release slate and catalog promotion activities! Onward!!

SELECTED TITLES FROM HHSE / MEDALLION, on sale at Walmart Locations!

DARK AWAKENING Premiere and Sneak Peek Launches Today!

Director and Special Effects Legend Dean Jones along with Hannover House will unspool his intense new thriller, "DarkAwakening" today at the Red Cinema in Greensboro, NC. The film's theatrical release will be expanded nationwide by Hannover House beginning July 17.  Tickets are on sale at Fandango and through www.RedCinemas.com. Watch this space for updates!

Thursday, June 25, 2015

The shocking and true story of Mexico's secret conspiracy!

BORRAR DE LA MEMORIA ("Erased from Memory") is the award winning and hugely successful Mexican theatrical release that dared to take on their government and expose the conspiracy that resulted in the deaths of hundreds of protesting students in 1968.  Now, with today's current news headlines mirroring an equally sinister theme of government corruption (and the death of innocent youths in Mexico) the timing for this film has never been better.

Hannover House is releasing BORRAR DE LA MEMORIA to theatres in key markets beginning August 28, and will have videos ready by Q4 shipment.

Mexican box office grosses convert into $1.6-mm US Dollars, and over 800,000 admissions, making this film as one of the top independent theatrical releases of the year in Mexico.

Hannover House and the newly launched PELICULAS FANTASTICO"' releasing label have had solid success recently with Spanish-language DVD releases.  Currently on sale at WALMART nationwide are ASALTO AL CINE and ANTONIO AGUILAR COLECION.

The theatrical momentum and subject matter of BORRAR DE LA MEMORIA should make turn this into the Company's best selling Spanish release to date!

Wednesday, June 24, 2015

Expansion Into In-House DVD and BluRay Replication

In a strategic move to lower cost-of-goods, lower freight times and increase both revenue and efficiencies, Hannover House will announce today the capital investment and operational expansion into in-house, DVD and Blu-Ray replication.

For the past twelve years, HHSE physical video products have been manufactured for the Company by a variety of third-party suppliers (most of which are located in California). As the Company's sales volume and catalog have grown significantly over the past few months, the benefits of obtaining DVD and BluRay products both faster and cheaper became clear. 

HHSE believes that the cost for launching this new internal manufacturing activity will be recouped in less than 90-days - and will quickly turn into a positive revenue source from margins generated by providing manufacturing services to supplier studios under the Medallion Releasing multi-studio distribution venture.

Watch for a formal, wire services press release today!

* * * * *

ACCESS WIRE:  3:00 PM Eastern Daylight Time:

Hannover House and Medallion Catalog Sales to Benefit from Newly Added, In-House DVD and BluRay Manufacturing Capability

(Springdale, AR)  Hannover House, Inc. (OTC: HHSE), a leading U.S.A. producer and distributor of independent films, books and entertainment products, is taking a bold step forward in the company’s development with the addition of in-house DVD and BluRay manufacturing equipment.  The new video production line is designed specifically to service the company’s rapidly growing catalog of DVD and BluRay titles, with the higher-volume, new release manufacturing duties still expected to be handled by larger manufacturing facilities. 
At present, Hannover House and Medallion Releasing titles are being manufactured by CD Video in Santa Ana, CA, Encore Media Services in Valencia, CA, and SONY DADC in Bolingbrook, IL.  The addition of in-house DVD and BluRay manufacturing capability at Hannover’s primary offices in Springdale, AR, will enable the company to manufacture catalog and deep list titles on an as-needed basis, and is expected to improve the company’s turn-around time, margins and placement rates.

“As our catalog has grown to over 300 titles, the need for quick turn-around on short-run video orders has grown exponentially,” said Fred Shefte, President.  “The major replication houses prefer to focus on larger orders of 20,000 or more units at a time, which is great for our frontline releases, but it does not work for older, backlist titles.  Rather than over-order on catalog inventory - and tie-up our working capital for a long period of time – this new in-house replication equipment will enable us to profitably and quickly manufacture to order on an as needed basis.  We believe that this will free-up cash flow, improve our order fulfillment times, cut down on freight and ultimately become a revenue source as we make this short-run replication service available to the Medallion Releasing supplier labels,” he concluded.

Hannover House and Medallion Releasing supplier labels have released 38 titles already during the first half of 2015, and are expected to collectively exceed 90 titles by year’s end.  This volume of new releases and catalog promotions represents a massive increase over 2013 and 2014, which each saw less than eight new release titles from Hannover House.  The enhanced release slate is being managed by HHSE / Medallion V.P. of Sales, Tom Sims, and Director of Sales Caitlin McKenzie.  The Medallion strategy is to open up access to mass merchants and key video customers to outside supplier studios on a sales fee basis.  The business model is patterned after Vivendi/Universal Music Group, which saw home video revenues expand to more than $180-million annually when Sims implemented a similar business model there.  Primary supplier studios selling DVD and BluRay products under the Medallion Releasing venture include Hannover House, Green Apple, C.M.D., XVIII Entertainment, Ytinifni Films and Fever Dreams.

Key retail accounts for Hannover House and Medallion Releasing include Walmart Stores, Inc., Best Buy, Redbox, Netflix, SAM’s Clubs, Target Stores and thousands of independent video retailers, schools, libraries and booksellers.  The company also sells entertainment products to a wide range of internet sites, and services most major video-on-demand portals. The company has been profitable for each of the past five years, and feels that the 2015 new activities will significantly increase both revenues and bottom line results.  Hannover House stock is traded on the OTC Markets under ticker symbol: HHSE.


This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.

Tuesday, June 23, 2015

Now is our 'Time to Shine' at HHSE

Active July Brings Record Releases, Media Day and New Filings for Hannover House Schedule

(Bentonville, AR)  Hannover House, Inc. (OTC: HHSE), a leading U.S.A. producer and distributor of independent films, books and entertainment products, released information on a series of operational and corporate governance events scheduled for July.

Beginning July 10, the Company will launch its most ambitious theatrical slate ever, with three new titles reaching theatres over a three week period.  “Dark Awakening” – a supernatural themed thriller – will open on July 17, alongside the critically acclaimed and politically charged “The Algerian.”  July 24 will see the launch of the nature docudrama “Bonobos: Back to the Wild.”  Each of these three features will be promoted during a special event “Media Day” and screenings to occur on Wednesday, July 8th in New York.

Revenue results from the ongoing Q2 period ending June 30, 2015 will be released ahead of schedule in mid-July, and the Company feels that the results are further validation of the success being delivered by the enhanced release schedule through Medallion Releasing.  Also in July, the Company plans to refile the Form 10 Registration Statement with the Securities and Exchange Commission.  A prior draft was withdrawn on May 11, following S.E.C. Comments, including the requirement for the engagement of a different, PCAOB certified auditing firm.

July will also see a record 10 or more DVD titles on sale at major mass merchant accounts for Hannover House, including Walmart, Best Buy and Target.  And last, but not least, the consumer website for VODWIZ, which has been accumulating new titles off-line and off-site for the past few months, is expected to go “live” in July.

“We wish to thank our loyal and long-term supporters at Hannover House for helping us reach these important goals in both product releasing and corporate governance,” said Fred Shefte, President.  “This is our time to shine.”

Key retail accounts for Hannover House include Walmart Stores, Inc., Redbox, Netflix, Barnes & Noble and thousands of independent video retailers, schools, libraries and booksellers.  The company also sells entertainment products to a wide range of internet sites, and services most major video-on-demand portals. The company has been profitable for each of the past five years, and feels that the 2015 new activities will significantly increase both revenues and bottom line results.  Hannover House stock is traded on the OTC Markets under ticker symbol: HHSE.

This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.

For more information contact:

Eric Parkinson, Hannover House, 479-751-4500 / Eric@HannoverHouse.com

Monday, June 22, 2015

HOTSTOQX renews strong "BUY" for HHSE

(Reprinted from AccessWire News Service, Monday, June 22, 2015)

Hotstoqx Releases Summary Report and Strong Buy Recommendation for Hannover House, Inc.

(Vancouver, B.C.)  HotStoqx.com, a Vancouver-based investor awareness firm involved in the analysis of publicly-traded companies, has renewed their strong “BUY” recommendation for media distributor Hannover House, Inc. (OTC: HHSE).  HotStoqx has targeted a thirty-day share price target of $.05 – which is about five-times the current trading price – and a six-month / year-end target price of $.22 per share, based on the tremendous increase in product releases for Hannover House, as well as the company’s new video-on-demand streaming venture, VODWIZ. 

A previously announced “BUY” recommendation for Hannover House was suspended by Hotstoqx in mid-May following the company’s withdrawal of a Form 10 Registration filing with the Securities and Exchange Commission. However, following an interview last week with Hannover House principals Eric Parkinson (CEO) and Fred Shefte (President), Hotstoqx has renewed its coverage, support and HHSE  recommendation.

“We were very satisfied with the company’s responses to our questions, especially items concerning the revised Form 10 filing and the increasing cash flows from recent sales,” said Tammy Baines of Hotstoqx.  “The issues resulting in the withdrawal of the Form 10 statement were unrelated to Hannover House, and had no impact on the company’s release slate and ongoing revenue achievements. The company is experiencing significant revenue growth from multiple sources, and we feel that the HHSE stock price should appreciate rapidly as the market becomes better informed.”

Hannover House, Inc. has been operating in the publishing and entertainment sectors since 1993, and has grown into a recognized brand name in the releasing of independent films to theatres, DVD, video-on-demand and television.  A new venture to expand the video and V.O.D. release slate was launched in 2014 as Medallion Releasing, Inc., under V.P. of Sales Tom Sims.  The Medallion venture enables other independent film and video distributors to access the Hannover House distribution pipeline to theatres, mass merchants and other media licensors for a fee.  The company has also signed up more than 3,500 titles from twelve supplier studios to support the upcoming consumer roll-out launch of VODWIZ, a movie streaming service specializing in independent films.

Regarding higher-end titles for initial release into theatres, Hannover House has announced eleven films for theatrical release in 2015, which will be supplemented with two additional “wide” release titles for Q4.  The core business of DVD and Blu-Ray releases will set an industry record this year with more than ninety total releases, which represents a substantial increase over 2013 and 2014 which each saw less than eight new video releases for those years.  Q1 Revenues for HHSE were at a record pace, and the company reports that Q2 revenues will continue this trajectory as the company moves into Q3 and Q4, which are traditionally the most lucrative quarters for consumer, home video sales.

Hotstoqx produced and released its initial Research Report in April on Hannover House, which may be obtained by sending an email to:  info@hotstoqx.com.   The previously published report is also available on the OTC Markets site at:  http://www.otcmarkets.com/financialReportViewer?symbol=HHSE&id=136557

Under The Private Securities Litigation Reform Act of 1995: The statements in the Press Announcement Report as prepared and submitted by Hotstoqx (Vancouver, B.C.) that relate to the forecasts and expectations of Hannover House, Inc., and with regard to the future impact on the results from new products in release and in development for Hannover House, Inc., Medallion Releasing, Inc. and VODWIZ, Inc. are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995.  Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. Prices in OTC Market stocks are often affected by influences unrelated to and often in opposition to the actual results and value of companies such as Hannover House, Inc.; Hotstoqx makes no representation, warranty or guarantee that the anticipated results and forecasts will occur and that the stock values for Hannover House, Inc. will reach the levels that Hotstoqx feels are realistic and obtainable based on the company’s current, actual and anticipated results.


Friday, June 19, 2015

HHSE's impressive Theatrical Slate just grew by FOUR new Q4 Releases!

Greetings HHSE Friends & Shareholders - 2015 is turning into the year of big titles and lots of releases for Hannover House and our Medallion Releasing supplier studio partners.  Hannover House already has ten titles for theatrical release in 2015 (many listed below);  but the addition of FOUR (4) new releases under the Green Apple banner for Q4 will elevate HHSE into one of the top indie distributors to theatres (in terms of total pictures released in a single year to theatres).  New Green Apple titles include:

HEAR ME MOVE - An energetic, hip-hop dance extravaganza ala "Step Up"

JOSIAH FOR PRESIDENT - fish-out-of-water, timely story of an Amish leader as U.S. President;

LOS SCAVENGERS - A coming-of-age, treasure hunting expedition for families & kids;

SCREAM AT THE DEVIL - disturbing and intense journey to the dark side of horror;

Previously announced 2015 theatrical releases for HHSE include:

ENCOUNTER; and, our most recent announcement of the "Bollywood" appeal feature, TIE THE KNOT;

Plus TWO major nationwide titles (under separate announcement) and FOUR additional key-market titles.  TOTAL OF TWELVE (12) to THIRTEEN (13) THEATRICAL TITLES!  Precise number for 2015 will depend in part on ideal screen location availabilities and feedback from key exhibition chains on preferential release dates.

Thursday, June 18, 2015

The power of BOLLYWOOD is coming to HHSE!

HHSE and XVIII Entertainment will launch "TIE THE KNOT" to theatres in 50+ markets in the USA this fall - our first "Bollywood" style release!  Similar films, such as "Queen" and "Dil Dhadakne Do" have generated enormous per-screen grosses (in some cases, $50,000 to $140,000 per theatre location) due to the extreme receptivity of the Bollywood-loving audiences in America. These titles also perform very well on DVD, Blu-Ray and Streaming, including popular subscription services such as NETFLIX and HULU.

"TIE THE KNOT" has the added benefit of an American star (Tara Reid), who is well known from her hit movies, such as the "AMERICAN PIE" series and the recent "SHARKNADO" SyFy hits.

Specific release date details and markets to be announced in early August.


An international cast including Tara Reid (“Sharknado”), Karishma Ahluwalia (“Savages”) and Bollywood’s Omi Vaidya is currently shooting “Tie the Knot,” a cross-cultural comedy about two young women — an American teacher and an Indian American surgeon — trying to get out from under parental pressures and find true love.
Sanjiv Kumar’s production is directed by Shuja Paul and stars Reid, Ahulwalia, Vaidya, Nevin Millan and Rajiv Uttamchandani.
Vaidya explained what sets the film apart in an e-mail comment to India-West: “There will be many clashes of culture we have not seen before …
“The Punjabi Sikh character and his culture are highlighted in the film and his relationship with a Caucasian woman from the South is very atypical. And the new trend with South Asians, where two people get into a loveless marriage to satisfy the parents but then continue to have their own lives and date other people on the side, is something we talk about as well.”
One of the film’s associate producers, Adil Lavji, told India-West from Los Angeles Aug. 9 that the team is halfway finished with principal photography, which began July 22.
B-roll scenes taking place in India are being shot by a second unit there, while the lead actors are working on various Hollywood sound stages, some done up to resemble India to an impressive degree, said Lavji.
One of Hollywood’s busiest cinematographers, Ken Glassing (“CSI: Miami,” “Glee,” “Alias”), working with a RED EPIC digital camera, has deliberately shot the American scenes using cooler colors, while scenes taking place in India have been given a warmer tone, he said.
According to a spokesperson, the film “reflects every Indian American woman trying to balance the culture of her family with the demands of modern day society … The ethnic and generational mash-up provides a stage for unique, floor-stomping comedy that will leave audiences enthralled at the calamity of old-school traditions and contemporary lifestyle.”

Monday, June 15, 2015

It's a Wrap!

Final Mix on the theatrical master of "BONOBOS: BACK TO THE WILD" was completed today at 424 Post in Culver City (Los Angeles metro).  Pictured (left to right) are Rob Chen (Dialogue Editor), Vivian Schilling (Producer), Kami Asgar (Sound Recording Mixer) and Eric Parkinson, C.E.O. of Hannover House, Inc.  "BONOBOS" will open in theatres and Natural History Museums in key markets beginning July 24, 2015 - with dates scheduled through September, and DVD / BluRay and Video-On-Demand set for November.  Go HHSE!

DVD sets Q2 Record!

DVD Placements Set Stage for Record Q2 Video Sales at Hannover House

DVD shipments were completed today on an impressive June release slate that will see more than ten titles from Hannover House, Inc. (OTC: HHSE) on sale simultaneously at the nation’s top mass merchants and video retailers. The placement success is unprecedented for any independent studio, and sets the stage for a record level of DVD revenues for the growing family of labels under Hannover House and its affiliated Medallion Releasing venture.  Sales revenues for the company have been growing rapidly with the enhanced release schedule, which has already seen 32 titles shipped in 2015, with over 90 titles slated for 2015.

Key titles now being set at retail for current summer placements feature a mix of new releases and catalog best-sellers held over for summer modulars, including:  American Justice, Antonio Aguilar Colecion, Asalto Al Cine, Brutal Colors, Estrenos De Accion, Estrenos Divertidos, Gabrielle, Grand Champion, Lazarus Papers, Love Beat the Hell Outta Me and On Angel’s Wings.  Hannover House and Medallion Releasing also have impressive line-ups of title commitments for September, October and November placement, including four summer theatrical releases and more than a dozen direct-to-video titles. Key accounts selling the Hannover and Medallion summer slate include Walmart, Best Buy and Family Video.

“Hannover House and our Medallion supplier studios remain committed to the packaged goods segment of the entertainment industry,” said Eric Parkinson, C.E.O.  “While the initial launch of video-on-demand streaming services several years ago resulted in a decline in overall DVD and BluRay sales for most studios, industry-wide revenues have since stabilized and many key accounts are now reporting increases in packaged goods sales.  We have positioned the company to maximize sales opportunities in the packaged goods side, while developing other media outlets, including theatrical, international, television and other forms of video-on-demand.  Our Q2 sales success with these DVD releases represents a new quarterly sales record for the company in that format, and is further evidence of the viability of our strategic plan,” he concluded.

Pro-forma revenues for the quarter will be released shortly after the close of the current period, ending June 30, 2015; however, the company reports that the value of the active DVD shipments has already set a quarterly record for a single media format. Other principal revenues for the company’s current quarter include international sales, video-on-demand sales and contracts and theatrical output agreements.

Hannover House suffered a disappointing corporate set-back in early May, when the company’s Form 10 Registration Statement with the Securities and Exchange Commission had to be withdrawn, following an unrelated, regulatory certification issue with the outside auditing firm that had performed services on the filing. New financing for the company’s expanded release activities was delayed as a result of the Form 10 Registration withdrawal – along with anticipated payments to several key creditors.  The subsequent debt conversion actions taken by key creditors of Hannover House to alleviate payment demands resulted in the release of approximately 24-million new shares of Common Stock (representing about 3% of the total float), which created a short term suppression of the company’s stock trading price.  The company feels that its continuing success in DVD and revenues growth in all key media sectors will help lead the stock price to a rapid recovery and all-time new highs during 2015, especially with the imminent filing of the revised Form 10 Registration and new auditor’s report.

Hannover House was formed in 1993, and services all major forms of media distribution, from theatrical to video-on-demand.  The company’s in-house library of film and television programs contains almost 300 titles – and the company’s new video-on-demand streaming service, VODWIZ (launching to consumers later this summer), boasts a library of more than 3,500 titles.

Key theatre chains in the United States and Canada that exhibit feature films from Hannover House include (listed alphabetically):  AMC Theatres, Bow Tie Cinemas, Carmike, Cinemark-Century, Cineplex-Odeon, Harkins, Malco, Marcus, Metropolitan, National Amusements, Pacific Theatres, Regal Entertainment Group, Santikos and Wehrenberg Theatres. 

Key mass merchants and home video purchasers of products from Hannover House and Medallion Releasing include (listed alphabetically):  AAFES, Barnes & Noble, Best Buy, Eurpac, Family Video, Hastings, Netflix, Redbox, Target Stores and Walmart-Sams Clubs.


This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.

Sunday, June 14, 2015

Our tax dollars, at work?

Happy Sunday evening, HHSE friends - as of 10pm Pacific Time today (Sunday, June 14), HHSE still has not received back formal approval for the wording of the participation details of a sponsorship and charitable beneficiary promotion supporting the first "major" theatrical title release from the active Cannes acquisition market.  Accordingly, we are unlikely to be posting that particular piece of news tomorrow morning, as we had previously planned.  It's facetious of us to say "our tax dollars at work" merely because the organization has a military - governmental - Veterans Administration tie-in.  The fact of the matter is that they are extremely careful about their organization's associations with commercial ventures, and they don't work on weekends (unlike the HHSE staff!). 

The title is acquired and set for Q4 theatrical release.  If we don't get the approval in the next few days from this cross-promotional partner, we will proceed to release the film's theatrical release news without the cross-promotional partner's details included.

Friday, June 12, 2015

First Major Theatrical Acquisition from Cannes Slated for Formal Announcement!

(Cannes, France)  Hannover House, Inc. (OTC: HHSE) and its affiliated companies Medallion Releasing, Inc. and VODWIZ, Inc. scored a record bounty of new title acquisitions for the North American market at the recently concluded Cannes Film Festival and Marche du Film in France.  For the company’s rapidly expanding slate of high-end theatrical titles, Hannover House acquired four new features for 2015, the first of which will be formally announced today in a free-standing press release.  For the home video packaged goods activities (DVD and BluRay distribution) a total of thirty-five new titles were licensed; and for the growing Video-On-Demand library under the VODWIZ streaming channel, 408 new titles from a total of 8 new supplier studios were brought on board. 

“The response from distributors, sales agencies and licensors far exceeded our most optimistic projections,” said Fred Shefte, President.  “Our goal was to promote the forthcoming launch of the VODWIZ portal to international rights owners. While that goal was achieved and exceeded, we also ended up licensing a record number of highly commercial titles for home video and theatrical.  With out a doubt, the Cannes market this year has generated the greatest results in the company’s 21-year history at any and all film markets,” he concluded.

The Hannover House theatrical schedule for 2015 includes four previously announced titles and four additional, unannounced titles for Q3 and Q4.  However, the new Cannes acquisitions will add four more new titles into the 2015 schedule, including at least one title for wide theatrical release.  For the home video schedule, 35 new titles acquired for Hannover House and Medallion will be incorporated into the company’s existing video release schedule, with a majority of the Cannes direct-to-video titles expected for actual on-sale release during Q1 of 2016.  The 400+ new titles that were acquired for VODWIZ are already in the process of on-boarding / uploading to the streaming-portal’s massive film library, with at least 100 of them expected for the on-line initial launch of the consumer site later this summer.  At present, the VODWIZ website and portal exists solely as a placeholder site, with only 60 titles posted on-line and limited consumer awareness.  The activation of the mirror-consumer site for VODWIZ will occur within the next few weeks, and is expected to have more than 500 titles immediately “live” for consumers to stream.  By the end of 2015, VODWIZ hopes to have more than 2,500 titles from a total of more than 18 supplier studios on-line for viewing.  In total, with the newly licensed titles from Cannes, the VODWIZ venture now has access to over 3,300 titles.  Five additional suppliers, collectively controlling the streaming rights to more than 4,000 additional feature films or television programs, have expressed interest in joining the VODWIZ supplier community, but are waiting for the consumer site to be activated first.  The VODWIZ portal is being described as “the Netflix of Independent Studios” although several major studios are in talks to place programming onto the streaming site.

In accordance with the licensors of the higher-end theatrical titles acquired at Cannes, each of these features will be announced through stand-alone press releases, the first of which is slated for the week of June 15 - 19.

Key theatre chains in the United States and Canada that exhibit feature films from Hannover House include (listed alphabetically):  AMC Theatres, Bow Tie Cinemas, Carmike, Cinemark-Century, Cineplex-Odeon, Harkins, Malco, Marcus, Metropolitan, National Amusements, Pacific Theatres, Regal Entertainment Group, Santikos and Wehrenberg Theatres,

Key mass merchants and home video purchasers of products from Hannover House and Medallion Releasing include (listed alphabetically):  AAFES, Barnes & Noble, Best Buy, Eurpac, Family Video, Hastings, Netflix, Redbox, Target Stores and Walmart-Sams Clubs.

Hannover House, Inc. was formed in1993 as a book publisher, and expanded into films and DVD in 2002.  The Company has grown into an internationally recognized publishing brand and film distribution house, with successful release activities into the theatrical, home video, television, streaming and international markets, along with its ongoing activities in book publishing. 


This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.

UPDATE:  6:00 PM Central Time (Friday, June 12) - The producers of a major theatrical film that we licensed at Cannes and slated for press announcement TODAY (per above) requested that we hold the announcement until MONDAY due to their waiting for approval (on some wording) from a cross-promotional partner in the film.  Instead, we will release TOMORROW (Saturday) news of a much smaller (but still "theatrical") title for HHSE / MEDALLION that was acquired at Cannes!

Thursday, June 11, 2015

Legal issues - reality vs. rumor!

Greetings HHSE Friends - Two "legal" questions arose onto the chat boards today.  The purpose of this blog is to address and clarify what these issues are and what they mean.

1).  ELDER MANAGEMENT - As previously addressed, the lawsuit filed in April by Elder Management was resolved in less than 24 hours.  The attorney for Elder neglected to file the case withdrawal.  We have communicated with her (again) to please withdraw / close the action as it's been resolved.

2).  ANDERSON'S LOAN - As stated previously, the "Andersons P&A Loan" for the 2010 theatrical release of "TWELVE" is one of only two outstanding P&A loans still being carried on the books.  This is nothing new;  it's long since been known and disclosed.  The Anderson's sued HHSE four years ago (2011), and have twice (in the past) issued "levy" garnishments against the Company, usually resulting in minimal benefit to them because of the Company's practice of immediately reinvesting cash flow into new product sales. Fred Shefte has made several proposals to the attorney for the Andersons to persuade them into considering various payment structures and payment plans.  We remain perplexed at their insistence on not accepting an installment agreement, ostensibly due to a concern that accepting partial payments might somehow jeopardize the collectibililty of the total debt (which is a legal position our HHSE counsel disagrees with).  As a result of a new garnishment issued today by the Andersons against Liberty Bank, they will likely collect less than $1,000.  Last October, we offered a $40,000 payment that was not accepted; accordingly, those funds were allocated to other creditors.  The Anderson's garnishment action is a distraction, but not an issue at all impacting the Company's daily operations and activities.

We would love to structure a payment plan with the Anderson's attorney.  Perhaps now, after trying a third time via the "adversarial method" and not getting relief, the receptivity to our HHSE payment plan will be considered.

As has been often stated, HHSE immediately reinvests almost all cash flow into new release marketing and the fulfillment of orders.  We don't sit on cash, we put it immediately back to work.  Accordingly, when the attorney for a creditor doesn't want to structure a payment plan - but instead prefers to attack the windmill - the result is usually futile.  We remain hopeful that the Andersons will decide to accept a payment plan from HHSE, as we could pay off their balance in 12-to-18 months.

Monday, June 8, 2015

HHSE strikes multititle deal for FreeStyle Releasing / Netflix Subscription V.O.D.

Greetings HHSE Friends - As previously mentioned, FreeStyle Releasing will be representing upcoming Hannover House theatrical films, including "THE SUMMONING." We are pleased to announced that "BONOBOS: BACK TO THE WILD" and "THE ALGERIAN" have also been added for the sales representation venture, based on the upcoming / qualifying theatrical release schedule for these two new films. "DARK AWAKENING" - also opening at theatres this summer from HHSE - is not eligible for the Netflix Subscription Video-On-Demand placement due to a major pre-sale for the film on SHOWTIME NETWORKS.

For eligible films meeting programming and quality requirements, Hannover House is required to release each to a predetermined number of Top 25 theatrical markets.  The value of the licensing fees begins with a significant (6-figure) base fee, plus an overage formula tied into box office performance.  For the initial three titles, a valuation of $3-million is considered to be realistic and obtainable - but may vary based upon the actual box office performance that the films will be generating during their release window.  From a revenue-reporting standpoint, HHSE will only book the base contract amount for each film until box office overages are known.

While it is possible for Hannover House and Medallion to license films "directly" to Netflix for streaming, the theatrical formula available through FreeStyle is not a structure that's generally available to other independent distributors.  Accordingly, HHSE believes that the value of the FreeStyle structure is significantly better for HHSE than a direct "one-off" licensing transaction to Netflix.  As more details are approved for release, this blog will be updated.

HHSE Media Day Welcomes CLAUDINE ANDRE' from the Congo!

While previous HHSE Media Day Events have had stars travel from places such as London and New York - the travel that world renowned naturalist Claudine Andre' is enduring (from Kinshasa in the Democratic Republic of Congo) is a new record distance!  While in New York, Claudine will be participating in a feature documentary for Discovery Networks, as well as a full-day of non-stop media interviews in support of the HHSE release of "BONOBOS: BACK TO THE WILD."

It is shaping up to be a major media event!  Key media and broadcast attendees that have responded to attend the Media Day event include (listed alphabetically):  Access Hollywood, AP-TV News, Associated Press, CNN Showbiz Tonight, E! TV, Entertainment Weekly, Extra!, Huffington Post (AOL), New York Daily News, New York Post, New York Times, Reuters, Time Out New York, USA Today, Village Voice, Yahoo! Movies.  More to follow...


Sunday, June 7, 2015

Mega-Blog Post - Updates on LOTS of issues!

As promised on Sunday - listed below is a mega-blog covering the top ten issues of interest and inquiry by Shareholders:

1).  What's the explanation for the late May debt conversions? Pls clarify and specify so that SH's know that the new shares have been absorbed already.  As previously disclosed, HHSE managers share the general disdain among the "long" Shareholders against the concept of "Debt Conversion" transactions. This is why we were so excited to file the Form 10 - and become fully reporting, which acted as a trigger for new financing (and "Accounts Receivable-based" structures) that would enable the Company to better manage debt servicing with product sales cash flow (see item # 7 below for more information on how the Form 10 triggered the new financing deal).  

When the Company was forced to withdraw the Form 10 prior to fully-active status, this created a delay in accessing the new financing. Unfortunately, the initial financing proceeds were needed to resolve some seriously delayed creditors:  TCA Global (as senior, secured lender), Tribune Ent., Bedrock and Fantastic Films (as judgment creditors), and Elder Properties (as a previously, incredibly-patient landlord that had carried a very old balance for 6-years).  All of these creditors were promised substantial payment in mid-May from the new funding... which was triggered by the full-registration status. However, as previously disclosed, a circumstance arose in late April that the Company could not have possibly predicted when filing the Form 10 on March 11:  the auditor (Terry L. Johnson) lost his PCAOB certification status and ability to sign-off on future public company audits.  For HHSE, this meant that the fully-qualified status of Terry Johnson as of the date of filing (March 11), was now headed towards "material deficiency" as of the May 11th automatic registration maturation date.  

By May 15, TCA went on a rampage to demand a further payment of $50,000;  and Tribune, Elder and other creditors were less-than-pleased to discover that the planned payments of May 15 would be delayed while the Company went through a new audit and a refiling process for the Form 10. 

Accordingly, the first shoe to fall was TCA by implementing their legal authority to force a debt conversion if the Company were in default of the May 15 payment. HHSE attempted every means to stop TCA from forcing this debt conversion, but was unable to disavow the authorization documents signed back in May 2013 under the default provisions. The other key creditors went from "patiently cooperative" to "aggressively insistent" on receiving payment within a very short window of time.  

With no other recourse available, HHSE authorized one (1) new Debt Conversion transaction (through Macallan Capital), which resulted in the release of 4.1-mm shares on May 27.  HHSE did not authorize the TCA venture (through Magna), but it happened anyway, and resulted in the release of 8,437,500 shares on May 29.  Further compounding the share issuance activity was a 12-month convertible note to Mohawk Investments (from May, 2014); the Company had planned to pay this off this convertible note in cash (plus the applicable interest premium) on May 15, from proceeds of the new funding. But the withdrawal of the Form 10 delayed the new funding and put the Mohawk note into position for eligibility of conversion into shares. So while this was not a typical "Debt  Conversion" by definition, it was, indeed, a debt that was converted into shares.  The Mohawk conversion also happened on May 27 (resulting in the issuance of 3,284,567 shares).  

A total of 15,822,067 shares were released into the market on Monday, June 1, 2015. By Thursday (we're told by the sellers) all of these shares had been sold. The volume in the HHSE stock for the three-day period of Tuesday through Thursday reflects sales of more than 21-million shares ("net" of double-printed T-Trades), as compared to a 30-day average of about 2-mm shares per day. So it seems likely that their representation of being sold-out is accurate.  UPDATE: June 9, 6:00 pm Eastern Time - Mohawk confirmed to HHSE today that they had NOT fully sold out all of their shares and that they intend to slowly sell their remaining balances over the next two weeks.

There is another aged "convertible note" to JSJ Investments that is slated to mature in June. If this note is converted to shares, it could result in approximately 7-million additional shares being issued at the current PPS.  JSJ had previously done several debt and convertible note transactions with the Company in 2013 and 2014 - the most recent funding maturing back on May 6 - which had resulted in 8,750,830 shares being issued (and sold-out in two days). The proceeds from the JSJ, Mohawk, Macallan and Magna activities have resulted in the retirement of more than $270,000 worth of debts, against a dilution of 24.5-mm shares. Unfortunately, it all happened during the month of May - and without the joltingly-positive benefit of full reporting status that was expected for May 11.

In full disclosure, HHSE is also considering the possibility of a separate "convertible note" to provide further cash-flow relief from the strain that our enhanced video release schedule has created on cash flow (due to having to pay upfront for the manufacturing and outbound freight costs of a rapidly growing release schedule). Such a convertible note (if obtained) would provide cash flow for immediate marketing / manufacturing needs, but would be expected to be paid off from Accounts Receivable collections before maturation into a "convertible" transaction into shares. No deal has been made;  HHSE will disclose the applicable / allowable terms of such a transaction if one is consummated. Future financing needs for the Company are anticipated to be self-funded through the Company's substantial and growing Accounts Receivable / general cash flow / and the access to the new A.R.-based credit line (which simply accellerates access to sales revenues).

While the release of 15.8-mm shares into the market in late May was a painful and unwelcomed experience, it may be relevant to note that the total A/S for HHSE has only increased by 46% over a FIVE-YEAR-PERIOD.  That's less than 10% per year annualized.  Compare this slow rate of dilution to many other growing OTC companies that often increase their A/S by 300% in a single year. While the dilution for HHSE is never welcomed, we believe that the rate that HHSE has proceeded has been as conservative as possible under the various circumstances of balancing growth with debt management.

2).  Revised Form 10 status.  The Company is working with the new auditors to complete the 2012, 2013 and 2014 full year reports.  Under PCAOB rules, the third-party verifications process must be completed again by the new auditors, and this has been the most time-consuming item.  The "rest" of the Form 10 has been revised and prepared for the release.  The Company's strategy is to not telegraph the forthcoming filing hour or day, but to simply file the Form 10 and create some surprise impact.

3).  Theatrical releases, schedule and strategy.  While summer is the biggest season of the year for theatres, it has proven to be the hardest season for finding "good screens" on the dates that HHSE has selected.  Accordingly, the release dates for "DARK AWAKENING", "ALGERIAN" and "BONOBOS" have all required some tweaking and shifting.  At present, we plan to launch "DARK AWAKENING" at an exclusive engagement June 26 - and at key markets on July 17 - expanding to 65+ key markets between July 24 and August 21.  "ALGERIAN" will open NY and LA exclusives on July 10, expanding to 20+ markets between July 24 and August 14.  "BONOBOS" will open NY / LA on July 24 and will expand to 20+ markets (including top Natural History Museums) during August 7 - though Aug. 21.  "THE PRINCIPLE" will expand its prior release (12 markets) to reach 10 additional key markets on August 21.  HHSE has also made a deal for the release of four Christian-themed features for release Sept. - Oct. - Nov. in about 50-theatres each... which will also drive the home video sales for HHSE on these items.

4).  Why was "Grim" announced a second time?  As is very often the case with secondary / independent studio releases (or any title for that matter which is not "street-date sensitive" due to substantial theatrical success), HHSE's title "GRIM" was selected for placement at Walmart at a time that was more complementary to the competitive market than the date previously selected by HHSE.  Last week, we were informed that the title had been accepted for the September modulars at Walmart.  We were also informed last week of the critical health status of director Matty Johnson's mother, who had just been moved into hospice.  The timing of our press release Friday was designed both formally acknowledge the title's new DVD street date, as well as to enable Matty's mother to see the news.  It is relevant to note that news that is posted solely onto the OTC Markets website is generally "not widely seen," as such postings are not directly distributed to outside publications or sites. It is also well-known in the P.R. industry that news posted late on a Friday afternoon is usually intended by the issuer to not be seen. The chat-board suggestion that this announcement of the "GRIM" street date - placed on the OTC markets site late on a Friday - is designed to "pump" the stock represents an opinion of such profound ignorance that it cannot be viewed as viable commentary. Major news that the Company wishes to be broadly and quickly seen is almost always released via the media wire services (through outlets such as PR Newswire, Access Wire, Market Wire, Business Wire, etc..).

5).  New Staff and needs.  The Company is interviewing for three positions at the Springdale offices.  Administrative Assistant is in replacement of Regina Hurst who left the company two weeks ago; Technical Services is a "mastering" job needed due to the huge number of titles that have been signed-up for VODWIZ and the workload that cannot be handled by Caitlin McKenzine and Katherine Mills to onboard these films and metadata.  The Film Booker position is also new - designed to help coordinate and implement the operational details of releasing the higher volume of theatrical films that HHSE is now handling (three titles in July, and one-each for Aug - Sept. - Oct. - Nov.).  The Admin. Assistant and Technical Services position pay is set "in the middle" of the local-market salary range for such positions (e.g., $25,000 to $35,000 is what Walmart, Tyson and JB Hunt have established in this market).  The Film Booker position is likely to be in the $50k range, subject to the qualifications of the candidate. We remind our Shareholders that the cost-of-living in N.W. Arkansas is extremely low compared to many other markets, so a dollar in Fayetteville may have 2-to-3-times the buying power as a dollar in Malibu, CA (as a completely absurd example).  

6).  Status of criminal prosecution against the chat board trolls; status of separate $10-mm civil action.  The Company has assembled a significant dossier of evidence as to the specific identities of the parties involved on illegal manipulation of HHSE trading over the past four years - including the confirmed identities of the principals and the hired trolls to post false and defamatory statements in support of the trading manipulations. This material, along with the Civil litigation case, was presented to the US Attorney's office in April for their consultation and review.  A prosecutor was assigned to the case, and a list of additional information was requested.  HHSE believes that the additional items will be fully completed and submitted this week.  HHSE corporate counsel is suggesting that the Civil damages case be delayed until the newly requested items have been delivered as these items may also assist the Civil action.

7).  Why have IR and PR activities stopped? Seems like must companies promote during debt dilutions. Why has HHSE been unusually quiet?  It's difficult to adequately describe how disruptive the withdrawal of the Form 10 Registration was to the Company.  New financing was arranged that was triggered by the May 11 activation date of the Registration.  The new financing is primarily "accounts receivable" based, but contained an upfront release of funding required in order to get the TCA Global Master Fund "U.C.C. Security Interest" released, in order that the new lender could enjoy an unencumbered lien on all titles (at present, TCA has a lien against all titles released prior to May, 2013).  Upon activation of the registration's status (May 11), the Company's plan had been to:

a).  Pay Off TCA - and announce the new lender / A.R. structure;

b).  Immediately implement a full-speed Investor Relations launch (commencing with the May 12 Money Show in Las Vegas, "the very next day");

c).  Start unleashing Studio Supplier news on VODWIZ;

d).  Start releasing greater detail on new ventures and activities;

e).  Begin a corporate outreach to major media investors to look at HHSE as the next, Major Independent.

Following a consultation with the S.E.C., the Company elected to withdraw the Form 10 prior to May 11th, or face "material deficiencies" resulting from the decertification of the auditor by the PCAOB.  What this withdrawal meant was that the Company was no longer able to comply with the new financing trigger to pay off TCA and implement all of the new I.R. / P.R. outreach.  Compounding this problem to another level, the Compnay did not file year-end reports with the OTC Markets (because as a fully-reporting S.E.C. entity, such annual filings to the OTC would be redundant).  So in the middle of this unexpected crisis, the Company's stock temporarily went to "STOP" sign, then to "YIELD" before finally being restored to fully current status.  Although it was too-late to stop the announcement and presence at the Money Show, the Company decided that I.R. / P.R. activities in mid-May and early June would be poorly timed.  New investors would not be seeing the fully-reporting status of the Company, and old issues - such as the problematic structure of TCA's onerous terms - would still be weighing down the Company's growth.  

Accordingly, it was decided that significant news and I.R. activities should be deferred until mid-to-late June, to better correspond with the achievement of those corporate benchmarks that trigger the explosive growth.

8).  Cannes acquisitions: 400+ titles for VODWIZ and 35 titles for HHSE DVD release.  In respect of the stature of the multi-title VODWIZ agreements, as well as the individual titles that HHSE acquired for DVD / BluRay, VOD and TV rights at Cannes, these items will be announced through a wire service announcement.

9).  VODWIZ status - site upgrades, title additions, when will they be visible? What else is happening with this venture?  A more specific Blog will be posted on VODWIZ this week;  meanwhile, the new items are being uploaded (off-line) at the rate of about 10-titles per day.  The new VODWIZ site (with technical gllitches fixed, new graphics and navigation tools - and of course, 100's of new titles) will be published live very soon.  This will reignite the consumer outreach campaign.

10).  Productions - status updates.  Good question, but each of these major titles would require a 3,000+ word blog just for the high-altitude summary.  Accordingly, the status of each of the major productions merits its own, separate blog, which will be rolled out contemporaneously with the other corporate governance achievements.

Thursday, June 4, 2015

Redbox - BULLISH on Packaged Goods vs V.O.D. as a Solid Market Opportunity

Redbox Continues to grow as a key distribution outlet for pre-recorded DVDs and BluRays - including their ascension to # 7 position in HHSE's top ten accounts!

Are they worried about erosion from STREAMING?  Apparently not... because they recognize the value and placement that BOTH packaged goods and streaming media offer to the marketplace!


Wednesday, June 3, 2015

Now on Sale - or coming soon - to a WALMART near you!

HHSE and Medallion Titles dominate Summer DVD new-release placement and modulars at WALMART STORES!

Does increasing the quantity, quality and frequency of DVD and BluRay releases SIGNIFICANTLY and POSITIVELY impact sales and profits for HHSE?  Absolutely!!

... and these are not even our highest profile titles!

Tuesday, June 2, 2015

HHSE Snapshot of Key Titles / Rights - So Far for 2015

Good evening HHSE Friends - With so many releases and so much activity underway for Hannover House and Medallion Releasing labels this year, some shareholders have had a hard time keeping up with rights and rankings.

Accordingly, we have assembled a snapshot chart (BELOW) of the Top SIXTY (60) titles for 2015 that are already ANNOUNCED (bearing in mind that some big guns are coming for Q3 / Q4!).

For clarity, we have identified which Media Rights are being represented by HHSE for Domestic; International rights are also vested with 22 titles, but have not been calculated into these domestic rankings.  Unlike "ON ANY SUNDAY," (in which HHSE had only theatrical rights, and no home video representation), HHSE is retaining packaged goods (home video) for ALL Theatrical titles... and with the single exception of "DARK AWAKENING" (which had a major Netflix presale already in place), HHSE is also handling Video-On-Demand for all Theatrical titles.

Rankings are based on anticipated Gross Revenues for HHSE / Medallion from all applicable domestic (North American) media. Not included are titles projected to perform below these top 60 items, or revenues from general catalog sales not resulting from a repricing or repackaging promotion. Also not included are the major Productions, the International Revenues and the Major Theatrical titles for which specific release dates are still pending.

Regarding the THEATRICAL TITLES, this category has the "wow" and "unknown" factor... will any of the theatrical releases start to catch fire and merit a wider expansion?  Impossible to forecast, so the projections for ranking purposes are based on the assumption of "no, there will not be a breakout / surprise hit."  But with 90+ titles for release during 2015, who needs a breakout hit to have an AMAZING Year!?!?