Greetings HHSE Friends & Followers - Below are a few updates as requested by shareholders.
1). MERGER UPDATE - The stock-for-stock swap, as originally structured back in March, placed a value on the Crimson Forest assets side which ultimately could not be reasonably supported by independent valuations. Accordingly, the ratio of stock for HHSE shareholders under the Crimson merger will need to be adjusted in favor of HHSE shareholders maintaining a larger percentage of the combined stock issued - and therefore, a higher premium-to-market formula. These Crimson Forest asset valuation issues impacted their balance sheets as well as the ongoing auditing process, but now seem to be heading towards a final resolution in the next few days. It is likely (but not assured) that the Newco post-merger company will be branded under Crimson Forest World Media, Inc., symbol CFWM.
2). LEGAL UPDATES - Settlement in principal has been made with the producers of "UNION BOUND" through mutual legal counselors. Settlement also seems imminent (according to HHSE counsel) in the XVIII matter; meanwhile, in anticipation of resolution and settlement, counsel for XVIII has extended the time for HHSE to file a response until the end of August. No other legal matters represent a material issue impacting the company outside of the ordinary course of business.
3). NEW RELEASE ACTIVITIES - No formal theatrical re-launch date has been set for "BLOODFEAST" until the film receives the MPAA "R" rating (currently under appeal, after two rounds of editing). There are THREE significant theatrical releases from HHSE for Q4, however, in respect of the merger activities and co-branding with other distribution partners, these titles have not yet been formally announced. The first is opening in theatres Oct. 6 (so announcement needs to be done very soon). The second release is November 3 and the final release of these three is Dec. 1 - all are significant level theatrical openings. On the home video front, HHSE withheld / delayed the street dates to five titles that would otherwise have hit the video market during Q2 - and three additional titles that were slated for home video release during Q3. These titles will begin hitting the home video, V.O.D. and Electronic / Digital platforms in Q4 and Q1 (2018).
4). NEW VODWIZ PARTNERSHIP - We are pleased, honored and excited to announce a new partnership with Amazon Digital to host the VODWIZ streaming platform - which is being tailored to fit the infrastructure of the Amazon Prime operations. This major development has breathed a hurricane of new life into VODWIZ, so watch for updates on this venture beginning next week...
