Greetings HHSE Friends & Followers - Listed below are some updates that impact the current filings status for the Company as well as items which are of interest to our shareholders.
1). LEWIN FOREIGN DEFAULT APPEAL - Last Monday, HHSE counsel in New York filed the appeal to overturn the fraudulent default awarded to Bruce R. Lewin in 2018 (during the time that HHSE President Fred Shefte was hospitalized and unavailable to respond to court deadlines). The New York appellate court filings are not on the standard e-file court system, so it took a week before last Monday's manual (paper) filing was finally posted to the docet. The primary pages of the appeal are included in this blog today below (we have withheld the voluminous exhibits due to size). As stated previously, Hannover House had no contractual obligation or relationship with Bruce Lewin (nor did the two company officers listed in the default), and the case would have likely been declared in Hannover's favor had responses back in 2018 been made in a timely manner. Now, the company is appealing the default judgment in pursuit to overturn the default and allow the dispute to be adjudicated on the basis of facts and documents (and not on the absence of a response). The current focus is to overturn the judgment in New York, with the reserve of contesting the default in Arkansas. Updates will be provided as this appeal progresses.
2). UPTONE and DAISY WINTERS DEFAULTS - The company has hired L.A. counsel to file motions to remove these two defaults, which were filed by Southern California attorney MARC LAZO. The motions in UPTONE will be filed first (possibly this week). The delay in filing is a procedural rule that asks that opposing counsel first attempt to mediate a resolution.
3). JSJ TEXAS JUDGMENT - Hannover House finally obtained from Standard Registrar and Transfer Co., Inc. the detailed ledger of all stock shares issued to JSJ Investments including the explanation by Standard Registrar of the specification and rationale for each stock issuance tranche. This detail and declaration was the missing item required for Dallas attorney James Carroll to file the declaration and Motion for Satisfaction documents in Texas. This filing will also include a motion for sanctions against JSJ for filing a motion for default for a note that was demonstrably fully retired prior to the default filing. This action will also support the rescission and expungement of the Arkansas Securities Letter of Oct. 2019, which incorrectly implied that JSJ was an Arkansas based investor and therefore eligible to register their dispute with the Arkansas State Securities Department.
4). LEGAL RESOURCES - The company has approved the acceptance of an unsecured loan from a non-affiliated private investor - proceeds of which are to assist with legal fees relating to implementing a dramatic and immediate acceleration of activities to oppose these old default judgments. As required under current OTC Disclosure Rules, the source and the amount of these legal fees will be included within the company's Q3 filings. The removal of the foreign default judgments against Hannover House will take away the key "fear factor" that stock short sellers have been using to fuel concerns - and to enable them to pursue imbalanced press and social media coverage on the company. Legitimate investors and respected media outlets are able to see past these last, few remaining puffs of smoke - to see the bright future for HHSE and MyFlix.
5). NEW BOARD MEMBERS - Two additional outside executive have accepted Parkinson's nomination to join the Hannover House Board of Directors, bringing the final count to five (5) directors. Due to the stature of these Director nominees, both have required that the company's obtain Director's and Officer's Liability Insurance - which will be active upon the publication of the company's Form 10 registration.
6). Q2 FILINGS - Hannover House will be withholding the filings of the Q2 report until Thursday or Friday of this week as we await review comments that are expected to impact certain balance sheet items and disclosures. The company's liabilities have been reduced by almost $3-million in the past few months, which reductions require third-party verifications before inclusion within the balance sheet.
STAY TUNED!
