Greetings HHSE Friends & Followers - there have been several positive developments for the Company over the past few days that merit a post. We appreciate those of you who understand the mechanisms of our various strategies and procedures for resolving current legal issues, current marketing activities, current financing developments and current and upcoming new releases. It's easy for non-experts or casual observers to get confused about what this-or-that development means, so we'll try to be as clear as possible to maximize the comprehension and resulting enthusiasm for this week's highlights!
1). NEW RELEASE UPDATES - Our Sept. 6 street date for THE LINDA VISTA PROJECT at Walmart Stores nationwide in the USA arrived at the DC's on Wednesday, and will be on the shelves in less than two weeks. This is the eighth consecutive new release that we have placed into Walmart (starting with June Street Dates) since moving our primary wholesale venture partner over to Cinedigm. As HHSE / Medallion was one of the first suppliers to abandon Alchemy months prior to their July 1st bankruptcy, we have become the beneficiary of "extra shelf space" availabilities due to a hiccup in competition. By January, there will be other suppliers fighting more aggressively for the shelf positions that we're currently snagging each month at Walmart and Best Buy. So we'll enjoy the pop in revenues while we can - and know that our bigger theatrical titles (hitting home video next January, February, March), will more than compensate for the added competitive pressures forecasted next year for lower-end (direct-to-video level) releases.
Other new release DVD titles "in queue" for Walmart in the next few weeks are DAY OF REDEMPTION, BAD GIRL, JOB'S DAUGHTER and REVELATIONS. Our DVD replicator is LOVING HHSE lately!!
2). AWARDS CAMPAIGNS - HHSE / Medallion is handling the various Awards campaign for the Lionsgate / Premiere / Sterling Pictures release of "CHOSEN" (starring Harvey Keitel). This awards consideration campaign for "CHOSEN" will concentrate on Keitel as best supporting actor, best wardrobe and best sound categories. The company also has a major, major title for theatrical launch in December that will be pursued for best actor, best score and best picture. Super exciting, game-changing stuff.
3). LEGAL UPDATES - a). The absurdly small and frivilous matter involving "AMITYVILLE" producers suing Hannover House resulted in a win yesterday for HHSE. In a closed hearing in the judge's chambers, the judge denied the motion to compel HHSE to make delivery of documents which had already been delivered, and denied the motion for legal fees for the Amityville counsel. The entire matter was kicked downstream a few months, with the invitation for HHSE's counsel to file for sanctions. HHSE's counsel has also filed a counter claim. b). The Daniel Ackerman pay matter has been discussed in detail with his counsel and a payment plan structured. Although HHSE has still not been served in this dispute, the terms of the resolution call for the case to be withdrawn. c). The Redbull suit is fully settled and the dismissal filing with the court has been approved by both counsels. d). The TCA matter has been successfully re-opened, including the HHSE counter-claim action. There are no legal matters which pose any form of material or operational threat to the Company at this time.
4). PRODUCTIONS - The financing venture with Silverline & U.K. Investors (for "AJA" and "MOTHER GOOSE") took a very positive turn this past week with the expansion of the investment capital into a much larger, revolving fund for the production and release of major motion pictures. For those that have said "Hannover House is one hit movie away from being the next Lionsgate," then having an association with this major fund may later be viewed as the seminal turning point for the Company to elevate from lower-budgeted, video-driven releases, to consistent, mainstream theatricals. We will update our shareholders as details of the HHSE involvement as distributor of multiple major features are approved for public disclosure.
Another interesting funding venture arose this week for the production and distribution of "SHADOW VISION" - a great concept for a sci-fi thriller that has languished on the "will produce it someday list" for Hannover House. The film's premise (of a blinded woman who develops remote viewing skills after an experimental treatment) lends itself to a variety of plot options - and the original Act 3 was too costly (involving a terrorist attack on a Nuclear Power Plant). The new Act 3 concept from the investors is just as thrilling, but at a fraction of the expense. Additionally, this film will be one of the first productions to access both forms of financing from the State of Arkansas incentives programs. Principal Photography commenced on "SHADOW VISION" several years ago, but was stopped due to budgeting and access concerns about the Nuclear Plant finale' of the original screenplay. The existing footage (shot on 35mm Panavision - as opposed to the new film, which will be shot in 4k HD) should make for an interesting DVD bonus feature item!
5). MORE ACQUISITIONS FOR THEATRICAL / HOME VIDEO - We have previously announced PALI ROAD on this blog - which enjoyed a 42 screen theatrical release earlier this year. There are FIVE more titles that will be posted onto the blog in the next few days and weeks, keeping the HHSE / Medallion train roaring on track for a record year!
6). BOOKS? Yes, Barnes & Noble, Books-A-Million and Hudson Group have stepped up to support independent publishers, as the book wholesale and retail industry has finally stabilized after a five-year turmoil. The expansion of 100+ new stores by Barnes & Noble recently has temporarily hit their earnings, and they board voted out their C.E.O. yesterday. But the long-term prognosis for the industry with physical book sales is good and industry experts predict a record year in 2017. HHSE plans to be involved in releasing more books - including "movie tie ins" such as a screenplay / production shot book on "MOTHER GOOSE: JOURNEY TO UTOPIA" - as such items have been selling north of 200,000 copies when released simultaneously to a national theatrical release break of the film.
7). CORPORATE GOVERNANCE - The company is late on filing Q2's. This will be promptly resolved. The Company has missed its internal target goals for the filing of the Form 10 registration statement - due primarily to the complexities of our Film Library Valuation in light of having almost 500 titles now. The L.A. based firm handling the HHSE / Medallion Library Valuation Report also handles most of the major studios, so do not be mislead by stock chat board misinformation. The company always has, and always will, conform to industry protocols in all reporting aspects, including a Film Library Valuation report, GAAP accounting and those additional controls and procedures enacted by our auditors to enable full compliance.
Have a great weekend!