The harder we work, the luckier we get. In the process of moving ahead on all filings, projects and corporate matters - including the recruitment of studio suppliers as programming participants in MyFlix - sometimes the timing and opportunities mesh in ideal ways with the right outside entities.
HHSE's receipt last week of a MyFlix Funding Proposal from a major media company may enable the HHSE S-1 Raising to proceed on a much more-limited basis (less total shares issued under the S-1 and at a higher premium-to-market pricing). This development will not impede or delay our Form 10 registration in any way... but would impact the timing of the subsequent S-1, and the amount of funding being sought (a revised S-1 would be seeking to raise substantially less than the prior total of $8-mm via stock sales).
The deal terms of this HHSE / MyFlix credit line are still being massaged... but as required under S.E.C. disclosure principles, the venture will be publicly announced within five days of execution, if final terms are mutually accepted.
As it stands, the cost-of-capital under this credit line proposal is far more beneficial to HHSE and our shareholders than the prior plan of issuing 100-MM+ shares via the S-1 to raise the same level of capital.
The media entity is a well-known producer of major feature films and they would be not only a superb programming supplier to MyFlix... but their access to major capital makes them a viable source for the generation of a credit-line based funding structure for the final launch and site marketing needs for MyFlix.
Timing for this venture is imminent, and a credit line agreement could close and be announced within the next ten days. It's an eye-opening and intriguing twist on the S-1 plan for raising MyFlix capital, and one which merits our serious consideration.
Stay Tuned!
