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Tuesday, June 6, 2017

Corporate Updates on Merger Events / Resolutions

Good afternoon HHSE Friends & Followers - In anticipation of our pending merger approval, HHSE has been working with our attorneys and key creditors on the final resolution of some of old issues that have been fuel for stock critics - but which were never material threats to the operations of our business.  Here's a quick recap of some recently resolved matters and pending transactions:

1).   TCA GLOBAL MASTER FUND - as stated previously in this blog, a settlement was made with TCA to fully close all maters... well it's finally been filed with the courts in Florida... as the court-recorded documentation of settlements sometimes occurs weeks / months after the deals are made.  In any event, HHSE stock certificate #1530, issued June 18, 2013 as collateral for the TCA Investment Advisory Fee has been cancelled, and these 10-million shares will be returned as unissued treasury stock.

2).   JSJ INVESTMENTS - Principal terms of a settlement are expected this week, based upon communications between attorneys.

3).   ANDERSONS P&A - Principal terms of a settlement are expected this week, based upon direct communications with the lenders.

4).   BEDROCK VENTURES - Company has engaged counsel to re-open the case under Arkansas Law, as compelling evidence exists to have the California matter vacated.

5).   AMITYVILLE ASYLUM - New counsel has been engaged in this matter, which is expected to be settled (or adjudicated) by June 27.

A separate Blog Posting on Merger activities with Crimson Forest is being prepared for later today.

UPDATE:  Greetings HHSE Friends. The update planned for Tuesday got hijacked by some post-merger funding details that monopolized managerial time for the past two days.  As alluded to in some of our recent, prior blogs and filings, five significant media players (all China-based) will be conducting various financing transactions "post-merger" that will provide production funds, releasing funds and operational resources.  It is our belief that the balance-sheet value and revenue benefits from these various transactions will not only transform the company, but will also elevate the business to a level of qualifying for the NASDAQ exchange.

Meanwhile, here are some quick updates for those issues which we are authorized or empowered to disclose at this time:

1).  MERGER APPROVAL - we have not received any regulatory feedback that would indicate any issues, delays or problems with the valuation methodology and the stock-for-stock swap.  We have separately applied for a Crimson ticker symbol change, and are awaiting word on that matter as well.

2).  DTC / STOCK FOR STOCK SWAP - Our advisors tell us that HHSE shareholders will not need to do anything in order for each of them to receive Crimson Forest shares on the date of the stock-for-stock swap.  Crimson shares are DTC (electronic) and this will avoid the prior issues some shareholder incurred regarding paper certificates from HHSE.

3).  PREMIUM VALUATION - as structured, HHSE shareholder will receive Crimson shares at a significant premium value-to-market.  We cannot disclose the percentage structure until we receive full-regulatory approval.  However, the bottom line is that a shareholder owning "$X" worth of HHSE shares will receive "$X++" of newly re-branded Crimson shares.

4).  CRIMSON SHARE SUPPORT - Contemporaneous with the merger, several of the China-based affiliates will be buying blocks of Crimson stock on the public markets.  It is our belief that this will further support the Crimson share price and result in an even greater appreciation of value for HHSE shareholders.

5).  POST MERGER ACTIVITIES - Besides the launch of several high-profile theatrical productions post-merger, the newly re-branded Crimson-HHSE will be (finally!) launching the VODWIZ portal, and embarking on three, very exciting new distribution ventures involving North American activities, International Sales, and Theatrical Distribution in China.  It is our belief that these significant post-merger activities will have a dramatic impact on the company's revenues, visibility and valuation.

6).  TIME FRAME - we believe that we are only days away from completion of the tasks that are required for the regulatory approval of the stock-for-stock swap, and the physical share exchange.  However, as this time frame is driven by outside agencies, we cannot provide a more specific prediction of the precise day that all of this will be completed.