Good Afternoon HHSE Friends & Followers - Over the past two years, the Securities and Exchange Commission has tightened the rules and enforcement procedures regarding unregistered issuers and the Rule 144 restrictions on stock share issuances.
According to HHSE Securities Counsel, Ms. Morgan Petitti, this has resulted in an extension of the "holding period" for restricted share issuances. Ms. Petitti writes:
"The current exemption applicable to HHSE is 4(a)(1) which carries a 2 year holding period."
While this rule change and interpretation was not known to HHSE until now, it does impact the holders of restricted stock shares - including those issued in satisfaction of legal settlement agreements. Shares issued for legal settlement are now subject to the 4(a)(1) holding period of two years. But this timeframe can be shortened down to six (6) months AFTER the filing of the company's Form 10 Registration Statement. This is surprising and unexpected development - which underscores the importance of our commitment to completing the registration and to become a fully-reporting company. But in the short term, this rules and interpretation change will block any sales of previously issued settlement shares - for at least six more months.
Hannover House does not control the Securities and Exchange Commission and their various rules changes. So, we cannot be held responsible for this regulatory change. However, the legal settlement share recipients will likely benefit from this eligibility change... as the date in which their shares move into free-trading status will likely be at a point in time when the HHSE stock is well north of $.05 per share (as opposed to it's currently challenged pricing level).
Meanwhile, HHSE has made deals to "buy back" 1.6-million restricted stock shares, issued years ago to HHSE vendor suppliers. These shares will be returned to Treasury, and will reduce the total amount of shares outstanding and in issue as a result.
Lots of activity and projects in motion... hold tight and stay tuned!
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CHEVEL SHEPHERD and "WILDFIRE" (aka "Pancho") on the set of the upcoming HHSE major feature film, "WILDFIRE: THE LEGEND OF THE CHEROKEE GHOST HORSE."
