Big IMPACT for HHSE / MEDALLION going into 2017 !

Greetings HHSE Friends & Followers - having a MILLION DOLLAR January of New Release sales & Shipments is a GREAT WAY to end 2016 and to launch in to 2017!  Thanks primarily to the strong retailer support for LOST IN THE PACIFIC, as well as for PALI ROAD, DINOSAURS OF THE JURASSIC and Netflix agreements, HHSE / Medallion will post a $1-mm month in January, 2017.

Watch for LOST IN THE PACIFIC at ALL major accounts:  Walmart, Target, Best Buy, REDBOX Kiosks and via NETFLIX.  PALI ROAD is in full release at Best Buy, and limited release at Walmart; same for DINOSAURS OF THE JURASSIC.  Netflix has licensed LOST IN THE PACIFIC and PALI ROAD for subscription video-on-demand streaming... so we're definitely hitting into 2017 at a full throttle speed!

Cheers & Happy New Year from HHSE!

UPDATE (Sunday, Jan. 1, 2017) - As a holiday THANKS to our loyal shareholders, HHSE will send a FREE, Fully Packaged (Consumer Edition) DVD of "LOST IN THE PACIFIC" to the first fifty (50) shareholder's responding to: HannoverPR@aol.com.  Be sure to include your full name and mailing address to receive this Happy New Year / THANKS gift!

Happy Holidays to all HHSE Friends & Followers!

(Tuesday, Dec. 20, 10:00 pm Central Time) - Greetings HHSE Friends - as we hit the last half of a shortened holiday week - and going into a period of about two weeks in which most of the Entertainment Industry corporate offices go quiet - we wanted to thank all of our Longs and Friends for their support of Hannover House over this past year, and for many of you, back since 2010.

Some have asked if the publication of our Form 10 Registration will be a "Christmas Present" for the Shareholders - implying that this seminal corporate filing it will be released this week.  To these enthusiasts, we must report that "no," we are definitely NOT releasing the Form 10 this week, due to the recommendation that the audit portion of the filings include the current calendar year, ending 12-31-2016.  It would be impossible under G.A.A.P. precedents to release a year-end audit before the applicable period actually ended.

To the other shareholders that more realistically ask "when," we must say that there will be no delay on any of the key principals to make this the priority project for the initial weeks of the New Year (2017). The written and disclosure portions are already drafted and reviewed by Securities Counsel, and the prior comments received from the S.E.C. on the Form 10 filing made last year, have been fully addressed and incorporated into the filing.  The Library Valuation issues are now resolved, and the remaining issue is the 2016 audit, which will commence during the first week of January, and will go extremely fast due to the review of prior years and first three quarters of 2016.

We would like to be more specific. However, we believe that our advisors have a strategy that will put an end to the clownish shenanigans of outside trade-manipulators that have artificially impacted (down) the stock price... and we trust that this plan will work to restore the PPS and revitalize shareholder enthusiasm and new investor activity.  Accordingly, if further information on the Form 10 specifics can be safely published in the next few days, we will not hesitate to do so.

* * * * * * *

In other news - the test opening in L.A. of "CHOSEN" (starring Harvey Keitel) last weekend was quiet successful, and this will enable the film to be expanded to a greater level on January 20th.  Although the auditoriums at the Laemmle's Town Center 5 in Encino, CA are not large, we sold out all three evening shows, which over-performed the film's expectations by 50%.

Upcoming theatrical release markets include NY, Chicago, Philadelphia, Dallas-Ft. Worth, Atlanta, Phoenix, San Francisco, Houston, Miami-Ft. Lauderdale, Tampa-St. Petersburg, Orlando, Seattle-Tacoma, Portland, Denver, Kansas City, Sacramento, San Diego, Charlotte, Raleigh, Nashville, Memphis, Austin, Oklahoma City, Columbus, Cleveland and N.W. Arkansas.

Various Updates - HHSE - As of Dec. 1

Greetings HHSE Friends & Followers - Here's a super brief recap of some relevant items and issues as requested by shareholders:

1).   WALMART PRODUCTS - At present, we have six (6) items into Walmart stores in the USA and four (4) items into Walmart Canada.  As of January, we will have three (3) new releases added to this mix (LOST IN THE PACIFIC, PALI ROAD and DINOSAURS OF THE JURASSIC), although we cannot predict how many (if any) of the current titles in the stores will be held-over for January.  There are three additional items that will also be added to the February "modulars" (which is the in-line shelving, organized by genre and alphabetically), which is a separate placement from New Release shelving or New Release end-caps.

2).  STOCK BUY BACKS - HHSE has made direct purchase agreements with three, non-affiliated shareholders, to purchase 1.2-million shares at $.01 each.  These shares will be retired into treasury stock.  As long as the share price remains artificially low, we will continue to buy shares and retire them to treasury, as cash permits.  The Company had to delay the process of buying back shares due to the loss of cash flow from the bankruptcy of Alchemy / Anderson, and the non-bankruptcy cram-down of Allegro Music Group.  While the financial woes of those two wholesalers did impact cash flowing into HHSE, it was most notable for optional issues, such as stock buy-back opportunities, as the Company has otherwise managed it's operations and payables through other cash flow means.  It is also notable that HHSE has not issued a single share of stock in over a year (for any purpose), and that the two principal managers (Parkinson and Shefte) have not sold any shares in three years.  As a non-reporting entity, HHSE is not required to file a Form 8 regarding the stock buy-back... but we will disclose this in our upcoming year-end filings and the Form 10 registration.

3).  LEGAL UPDATES - HHSE attorneys continue to work with the TCA Attorneys to finalize the settlement terms.  As a procedural matter, the October 20 hearing was rescheduled, with the expectation that a formalized settlement will be filed well before the court's next available hearing date.  With respect to JSJ - a settlement based on the actual value of the notes plus the maximum allowable interest is being completed and will be filed with the appropriate courts.  Regarding the "D.C. Photographer's Case" - the court has extended until Dec. 15 the opportunity for HHSE to file a motion for dismissal of the matter, which is being accompanied with a payment of $1,000 for the work-for-hire services rendered.

4).  CORPORATE MOVE - The old warehouse location only holds pallets and racks at this point, and will be fully vacated by next week.  The new executive offices are fantastic and extremely conducive for productivity and efficiency.  While all the boxes and files are moved into the new offices as of today, there's still a week or two of "unpacking and filing / sorting" before we can declare the new space 100% functional.  We will shoot some photos and post to the blog late next week.

Much more to come...  it's been a long journey, with many bumps in the road... but it's looking like a smooth cruise-control ride at this point!

Standard Registrar

At the request of a variety of shareholders, we can confirm that there is NO stock issuance activity whatsoever to create additional shares or dilution in HHSE. The company has NOT issued any new shares, the company has NO PLANS to issue new shares, and NO previously "restricted" shares have "come off" restriction.  The stock structure has not changed in over a year.

Thanks!

Re: TA Thu, Nov 17, 2016 11:52 am

From	Amy Merrill amy@standardregistrar.comhide details
To	Eric Parkinson hannoverhouse@aol.com Eric, We have not had any recent transactions that would change the float. Thank you, Amy Merrill WE’RE MOVING November 21, 2016 We will be in our new office  440 East 400 South – Suite 200 Salt Lake City, UT  84111

Ongoing Industry Coverage of HHSE ventures.

From today's AFM Screen Daily;

http://m.screendaily.com/5111138.article

In other news - Move into executive office suites is 80% complete; Walmart sales on five current DVD titles is going well (two are already into "re-order" Mode);  set and character designs on MOTHER GOOSE is on schedule (and look amazing!); much more to follow.

The day before the big move!

Good morning HHSE Friends & Followers - As disclosed previously, Hannover House is moving our executive offices to 300 N. College in Fayetteville.  We have taken approximately half of the top floor penthouse level, adjacent to Butler Broadcasting Center (top rated local radio station operators), and have terrific views of Fayetteville, the University and the Dickson St. Entertainment corridor, visible from both Fred Shefte's and Eric Parkinson's offices. The painting is complete, and the carpet cleaners are busy at work. The big furniture move is tomorrow, and the porting of the telephone lines is Thursday.

Parkinson and Shefte both wish they could say "we'll miss the Springdale warehouse offices," but as public company officers, we are required to be truthful at all times, even in polite circumstances. Frankly, the invasion of 19 raccoons 2-years ago, left a lingering "tang" to the warehouse air - and these old offices were never nice enough to invite VIP guests, program suppliers, celebrities, or even Parkinson's brother, former Kansas Governor Mark Parkinson.

When the opportunity to relocate the warehousing was presented, this opened up the chance to have top quality executive offices, no raccoons, and a far better location. Change can be very good.  Onward, HHSE!

Selected Photos of some of the new offices:

HHSE Offices, Top Floor, Western Facing Windows

Front Entrance & Reception Office

Accounting Office

View from Executive Suite # 1

Executive Suite # 1

Technical Services Office

Executive Suite # 2

Hallway (will be lined with shelves)

Restrooms / Kitchen Facilities

HH Files Disciplinary Action against "Amityville" attorney

Dear HHSE Friends & Followers - licensed attorneys are considered "officers of the court" and are required to uphold to a code of conduct and ethics.  In two recent instances, attorney Austin Easley (counsel for Amityville Asylum) has violated these foundational principles. Accordingly, Hannover House has contacted the Deputy Director of the Arkansas Judiciary, Office of Professional Conduct and registered a formal complaint.

In the most recent instance, Mr. Easley included false statements in a court filing - saying that Hannover House had "threatened" bankruptcy, and that this was the motivating factor to them pursuing a civil lawsuit. This is an untrue statement with malicious intent, as Hannover House has never threatened bankruptcy, and has in fact demonstrated that such an action is not only unnecessary but functionally impossible to impose due to the structure of how assets are secured. It would appear that the intent of making such a blatantly untrue statement in a court filing was planned by Mr. Easley to gain unfair advantage in the civil suit and to sabotage shareholder enthusiasm in Hannover House.

The amount due to Amityville Asylum is less than $18,000 - and we had begun making monthly installments prior to their filing of a lawsuit.  If Hannover House were able to pay full pay off nearly $400,000 each to TCA and to Fantastic Films without filing "bankruptcy," then the amount due to Amityville by comparison is insignificant... and the claim made by Mr. Easley is absurd and laughable.  Amityville's royalties would have been FULLY PAID off months ago had they not filed a lawsuit, which acted to stop our monthly installments. In our opinion, this is a nuisance lawsuit, that seems to be benefiting ONLY Mr. Easley's billings.

We will inform our shareholders of how the Office of Professional Conduct elects to deal with these false statements made by Easley.

LOST IN THE PACIFIC - Huge DVD & BluRay Title for February

Dear HHSE Friends & Followers - The $20-mm action adventure "LOST IN THE PACIFIC" (starring Brandon Routh of "Superman Returns"), will be available Feb. 7, 2017 at Walmart, Best Buy, Target and Redbox - among other retailers - and is on track to be the largest initial shipment video release for Hannover House / Medallion in the past five years.  It's a terrific action thriller, with a hint of Science-Fiction (ala "L.O.S.T."), outstanding production values and a highly talented international cast!  DVD and BluRay are tracking neck-and-neck in pre-order commitments!

Check out the powerful KEY ART campaign that HHSE / Medallion created for this film!

Go HHSE!!

DC Photog Case

Dear HHSE Friends & Followers - UPDATE - The judge in the DC Photographer's Case reversed the court clerk's prior actions (of accepting and filing the Plaintiff's motion for judgment) and instead extended a new deadline to HHSE (until Dec. 15) for all responses.  Accordingly, all prior circumstances have changed and are now fully in HHSE's favor. Parkinson was named under the Plaintiff's erroneous filing against the wrong corporation, which resulted in a negation of service to HHSE, as well as grounds to vacate the pierced-corporate veil argument mistakenly posed by Plaintiff's counsel. HHSE Attorney's will be moving for sanctions and legal fees at the hearing which has been set for Jan. 13, 2017.

HHSE ATTORNEY FILINGS IN THIS MATTER:

Through representation of Redmon, Peyton and Braswell, LLP attorneys (Alexandria, VA), Hannover House has made the following filings with the court on Dec. 15, 2016, as per the timeline set forth by the prevailing judge in this matter:

1).  MOTION TO SET ASIDE - 10 pages;

2).  MEMO IN SUPPORT OF MOTION - 11 pages;

3).  ANSWER TO COMPLAINT - 7 pages;

4).  PARKINSON AFFIDAVIT - 4 pages;

5).  EXHIBITS: WYOMING CERTIFICATE OF GOOD STANDING; JOHN BOAL INVOICE

6).  MOTION FOR DISMISSAL - 8 pages;

These items may be publicly accessed for those with a paid PACER account, via the court's website at:  https://ecf.vaed.uscourts.gov/cgi-bin/DktRpt.pl?345335

To Be Clear...

Greetings HHSE Friends & Followers - we were informed today by shareholders that our Transfer Agent, STANDARD REGISTRAR & TRANSFER CO., INC., refused to disclose to a caller what the Share Structure / Outstanding count was for Hannover House stock (HHSE).

BE ADVISED of TWO KEY ISSUES:

1).   HANNOVER HOUSE has NOT requested or instructed Standard Registrar to change their policy of full and open disclosure of our share structure.  The "TA is NOT GAGGED" as the phrase has been used in such matters.

2).   HANNOVER HOUSE HAS NOT ISSUED ANY SHARES, AND HAS NO PLANS OF ISSUING ANY SHARES.  The change in our A/S structure with the Wyoming Secretary of State was to create an "availability" for shares in the event that officer surrendered shares are ever reissued.

Hannover House has sent an email to Amy Merrill of Standard Registrar specifically instructing her that we have NOT asked for information to shareholders to be "gagged" or otherwise withheld.

THANKS!!   HHSE MANAGERS

SOLD OUT!

BOOM!  BOOM!  BOOM!  Three out of the four screens showing SPICES OF LIBERTY tonight at the Carmike Park Place 16 theatre in Raleigh, NC (Morrisville) are 100% SOLD OUT already!

Why is this film launching FIRST in the Raleigh market? Well, there is a large and responsive South Asian - Indian community in the greater Raleigh metro, due to many high-paying and technically skilled jobs in the "Research Triangle" and many area universities.  Also, this is where most of the movie was filmed, so there is an accessible audience from cast, crew and awareness. The strategy of launching to a solid initial theatrical result - has worked well for other distributors who find greater receptivity and enthusiasm for expansion dates after a film has some degree of momentum.

HAVE A GREAT WEEKEND, HHSE FRIENDS AND FOLLOWERS!!

Ooops!!

Yikes!  What do you do when your SPICES OF LIBERTY opening night event has 484 tickets pre-sold for an auditorium with only 199 seats?

Well, if you're the Carmike Park Place 16 in Raleigh (Morrisville, NC), you ADD THREE more Screens!

Accordingly, SPICES OF LIBERTY will open tonight on FOUR screens at this Carmike location, with a total seating capacity of approx. 655.  For the remainder of the opening week run, the film will be moved back to a single auditorium with 199 seats.

But hey, this is a GREAT problem to have!  Go HHSE!!!

http://www.fandango.com/Carmike-Park-Place-16_AAGUQ/theaterpage

HHSE - TCA Settlement Update

Good morning HHSE Friends & Followers - As is often the case on the 'eve of a potentially contentious court hearing, the attorneys for TCA and Hannover House have reached a preliminary settlement of the matter.  In order to finalize the terms, the hearing scheduled for today has been continued to a later date.  Both parties expect to reach a resolution and documented agreement within a week, at which time, the court matter will be fully retired.

No, for those of you wondering, the pending settlement does NOT require further dilution of the HHSE stock; however, both parties have agreed to keep the terms confidential at this time.

ONWARD>>>!!!

Form 10 Requirement mandates Stock Structure Filing

Good morning HHSE Friends - as most of you know, Hannover House has not issued any shares in over a year, and we do not have any plans to issue any more shares.  That said, both Parkinson and Shefte have the "option" to call on the reissuance of surrendered shares... yet there are no additional Authorized Shares still available under the existing share structure at 800-mm.  Accordingly, and under advice of counsel to avoid an S.E.C. comment on our Form 10, we have INCREASED the "authorized" shares from 800-mm to 900-mm.  However, this is NOT because we are issuing shares to ourselves or any other entity.  This move has been taken to create the "availability" of shares in the event that the existing reissue rights are exercised.  As those in the know will recognize, as officers and managers, Parkinson and Shefte are restricted from selling shares, except in special circumstances and in small quantities.  So there is no benefit to either Parkinson or Shefte in "calling upon" the reissue option to receive back shares that were previously surrendered into treasury.  Regardless, the Form 10 advisor has instructed us that the absence of availability will create a comment / issue with the Form 10.

For any short-sellers that might get all excited and think "ooohh... there's going to be some cheap shares soon," we have bad news for you.  Having the "availability" of shares does not mean that we're going to break our streak and issue more.  "Debt Conversion" deals are functionally impossible to do anymore under the enhanced compliance restrictions recently mandated by the S.E.C.... and HHSE has been managing our payables adequately without doing any debt-conversions for the past 15-months.  Additionally, and notably, neither Parkinson nor Shefte have any way to benefit from the issuance of previously surrendered shares... in fact, the reissuance of shares to Parkinson and Shefte may trigger personal tax liabilities.  Accordingly, this filing move to create A/S 'availability' will not create any dilution of trading shares into the marketplace.

Spices of Liberty - Launches to Theatres Beginning OCT. 21

"SPICES OF LIBERTY" - a romantic comedy acquired by Hannover House during the Cannes Film Festival this year, will open in theatres across the USA, beginning with a premiere event next Friday (Oct. 21) at the Carmike 16 in Morrisville, NC.  The film has been described as an "Indian version of 'My Big Fat Greek Wedding'" in its cross-cultural appeal and comedic situations.

"Films that appeal to Indian audiences have proven to be among the highest grossing independent titles at USA theatres over the past few years," said Eric Parkinson, C.E.O. of Hannover House. "We found 'Spices of Liberty' to be enchanting and appealing to a broad audience. So we're enthusiastic about the premiere launch and the subsequent expansion to major cities across the U.S.A."

The film stars Suhasini Reballa, Ajay Kumar and Prakash Patil.  Principal filmmakers include Gowri Goli and Supriya Goli for Priya Creations. The film chronicles the budding romance between two second-generation Indian youths living in America and struggling to balance their cultural histories with modern Americanized practices.  Ultimately, good friends good food and good times lead to romance, and proves the popular saying that "Love is a Dish Best Served Hot!"

“Enchanting, romantic, comedic and fun!”

– Le Film Francais (Cannes Festival 2016)

“A delightful, cross-cultural comedy”

– Screen International (Cannes Festival 2016)

PRIYA CREATIONs LLC  IN ASSOCIATION WITH HANNOVER HOUSE PRESENT A GOWRI GOLI PRODUCTION

SPICES OF LIBERTY

STARRING Suhasini Reballa Ajay Kumar Prakash Patil Scott Bailey Robert Angelo TJ Cawley CASTING DIRECTORS Murty S Swahari COSTUME DESIGNER Supriya Goli

Surekha Patlolla EDITOR Srinivas Varaganti PRODUCTION MANAGMENT Subhash Singh Murali Lagisetty Supriya Goli ORIGINAL SCORE M S Chandra DIRECTOR OF PHOTOGRAPHY THOMAS SCOTT STANTON LINE PRODUCER MICHELLE CAMERON CO-EXECUTIVE PRODUCERS Shan Saravanan Gowri Goli PRODUCERS Vinod Jindal Nagarjuna Yerra Supriya Goli Valli Prasad Kodali WRITTEN BY Gowri Goli Chandan Dash Supriya Goli Ezhilarasan (Hari) Irulappan Jalandar Reddy Lakshman Kannappan Prasad Kommaraju Suri Vulumuri

DIRECTED BY GOWRI GOLI

© 2016 PRIYA CREATIONS, LLC

Arkansas Incentives will help fund "Big" Pictures for Hannover House to Distribute

Hannover House and Medallion Releasing will be the worldwide distributors of four new feature film productions, being produced in the State of Arkansas, and utilizing three separate incentive and rebate programs for financing.  Based upon eligible expenditures, up to forty-two percent (42%) of some of these production budgets may be provided through rebates by the State of Arkansas.  For a movie such as "Mother Goose: Journey to Utopia," these incentives are expected to exceed two-million dollars (USD $2,000,000).

Watch this blog for more updates on the specific films, budgets, casts and schedules.

* * * * * * * * * *

Hannover House to Benefit from State of Arkansas Incentives

Oct 12, 2016

OTC Disclosure & News Service

Fayetteville, AR - Hannover House, Inc., (OTC: HHSE), a N.W. Arkansas based film and video distribution company, will be the beneficiary of a variety of film and industry financial incentives from the State of Arkansas, the company reported today. Four feature film productions, each being produced through special purpose, Arkansas entities, have received preliminary approval for state incentives subject to a customary post-production audit verification for each film.  All four of these films are slated for worldwide distribution through Hannover House and Medallion Releasing, including theatrical release, home video, video-on-demand, television and international licensing.

"We have waited patiently for over ten years for the Arkansas Film Incentives to reach the level of being not only competitive with other states, but in many instances, better," said Eric Parkinson, C.E.O. "The Film Incentives program, combined with a rebate for Arkansas employees and entities, and additional incentives for new technologies and industries collectively provide a greater benefit to these productions that we feel could be obtained in any other state. By keeping these productions within Arkansas, it will enable us to help accelerate the growing infrastructure of facilities, equipment and competent crews," he concluded.

Hannover House has been active in film distribution since 2002, when the book publishing company added DVDs to its product lines. The company became more active in theatrical distribution in 2014 in response to the maturing market for DVDs and the retail and consumer preferences towards higher profile, theatrical titles.  Although Hannover House has been involved in several feature film productions over the years, the new slate of films to be produced in Arkansas represent an enhanced involvement in all phases of the productions, from the screenplay to theatres.

"The worldwide entertainment market is maturing and evolving" said Fred Shefte, President of Hannover House.  "We need to look at the areas of growth within the entertainment industry, and focus our efforts on reaching those markets.  As DVD and BluRay sales have flattened or declined, we have stepped up our activities into the theatrical and video-on-demand arenas  Our current involvement in the development and production of original feature films is in response to the need for higher-profile films for theatres, and the realities that in most cases, producing such films is more cost-effective than hoping to license completed, higher-end films from the festival circuits."

State of Arkansas Production-Financing Rebates Triggers Local Media Coverage for HHSE

Greetings HHSE Friends & Followers - HHSE's involvement in four feature films during Q4 (2016) caught the attention of business writers tracking rebates and activities under the State of Arkansas Film Incentives program (and media rebates).  Although only "Mother Goose" has been specifically identified in the media as one of the State of Arkansas rebate productions, the other three features are also generating buzz at both the State House level, as well as within the Northwest Arkansas business community.  Add to this activity our move to impressive, executive office suites at 300 N. College, and the combined impact is a lot of local enthusiasm.

As disclosed recently, we have outgrown the office-warehouse combo location in Springdale, where we've resided since March, 2008.  Most of the current office space is for warehousing, which has been moved to off-site fulfillment (for far lesser costs), and with the company focused more on theatrical activities and production of higher profile films, moving to higher-end offices (instead of staying in a warehouse district), seemed like the right move based on these changing, growing and improving circumstances.

By the way, in a semi-related matter to our office location - some shareholders have asked why over 4-million of our DVD boxes list the address for Hannover House as being:  1722 N. College Ave., Fayetteville, AR  72703.  Yes, that's a UPS Mail Box location that the company has maintained as the repository of mail for 15-years.  It's our primary mail address, and always has been since 2001. So - why have a UPS store mail box as the "public" address?  It's because of well-intended "drop-ins" of people that want to pitch us on their "brilliant" (!!) movie ideas, or "audition" in our lobby... and many of these uninvited guests have been surprisingly insistent on seeing Parkinson and Shefte, unscheduled, to play their Ukulele or show us their Michael Jackson moonwalk move.  Drop-ins became so problematic that when we moved to Springdale in 2008, we purposely did NOT put up a SIGN on the building, and we did NOT change the address on all of our DVD packaging from the UPS Store mail drop.

Anyway, for those "in the know" (or who are NOT dispositionally insistent on promoting non-existent, alternative realities), we're very excited about the current distribution activities, the upcoming theatrical slate, the current "upgrade" of office facilities and the corporate governance filings for HHSE.  Now that our "current" status has been restored with the OTC Markets, you will begin seeing a lot more media coverage.

Hannover House Releases Movies to Theatres First
(Reprinted by permission of the Northwest Arkansas Business Journal / Oct. 7, 2016)



Eric Parkinson, right, CEO of Hannover House Inc., attends the final mix of feature docudrama "Bonobos: Back to the Wild" in Los Angeles, along with, from left, sound recordist Rob Chen, film producer Vivian Schilling of Fayetteville and sound mixer Kami Asgar. Hannover House co-produced the movie with MC4 of France, released it to theaters in 40 U.S. cities and will put it on DVD and Blu-ray in January.

Media distributor Hannover House Inc. of Springdale recently shifted its focus to releasing movies direct to theaters instead of DVD.

With its new venture, Medallion Releasing Inc., the company has started to release higher-quality films to theaters, enhancing its sales to home video, streaming services and television, said Eric Parkinson, chief executive officer for Hannover House. He partly credits the sales increase to “the visibility and credibility that theatrical titles enjoy over direct-to-video titles.”

Another strong shift in its business model is the production of original feature films.

“Arkansas has several beneficial ‘rebate’ incentive programs for original feature film productions,” Parkinson said.

Hannover House is working on a major movie, “Mother Goose: Journey to Utopia,” starring Samuel L. Jackson and Shirley MacLaine. Filming is expected to start in Northwest Arkansas in January, and the movie might be released as early as November 2017.

Also, the company started VODWIZ, a channel for streaming media, and will be similar to internet streaming sites such as Netflix or Amazon.

“Our business plan for VODWIZ is to have the largest catalog of independent, foreign, esoteric and art films available for digital streaming,” Parkinson said. The channel is expected to be launched to consumers in January when it will have more than 1,000 titles available.

The company started as a book publisher in 1993, and when it moved to Northwest Arkansas in 2002, started selling independent films on DVD.

“The DVD business was robust from 2002 until 2008, at which time consumer trends started shifting away from ‘independent’ films and DVDs toward bigger-budgeted theatrical titles and alternative forms of delivery, such as streaming directly to homes,” Parkinson said.

The company continues to publish books, but at a more targeted level, selling to retailers such as Barnes & Noble Booksellers Inc., Hudson Group Retail LLC and Books-A-Million Inc. It is slated to release four book titles in 2017.

Hannover House Moving to Fayetteville

Media distribution company Hannover House Inc. is in the process of relocating its corporate office from Springdale to Fayetteville, CEO Eric Parkinson said.

The move to the Today’s Bank building at 300 N. College St. comes after the company secured high-profile actors Samuel L. Jackson and Shirley MacLaine to star in “Mother Goose: Journey to Utopia,” which is expected to start filming in Northwest Arkansas in January.

“We’re stepping up our game,” Parkinson said.

Parkinson expects the move from 1428 Chester St. in Springdale to be completed by mid-October.

“Mother Goose: Journey to Utopia,” will cost $5.5 million to produce, Parkinson said.

Hannover House acquired rights to the script five years ago, and the movie has been in the works ever since.

The company attracted the interest of MacLaine and Jackson because “the material was strong, and both actors are represented by the same agent,” Parkinson said.

After MacLaine became interested in the movie, MacLaine’s agent, ICM Partners, who also represents Jackson, recommended him for a part in the movie.

“It’s a high-profile film as far as stars,” Parkinson said. It’s also “low risk” in that it will be produced in Arkansas, he said.

“Everything here is more affordable."  

Updates / HHSE-Medallion Products at WALMART!

Street date was yesterday (Oct. 4) for BAD GIRL at 2,250 "Urban" and "High-Volume" Walmart locations in the USA.  It was also the eighth consecutive week for UNION BOUND (!!) and the launch week for THE LINDA VISTA PROJECT into 3,580 locations.

SALVATION is in its third week at WALMART CANADA locations - and DVDs of  DAY OF REDEMPTION, THE CONGREGATION and JOB'S DAUGHTER all ship within the next two weeks for NOVEMBER placements at Walmart USA.

There is a good possibility that HHSE / Medallion could have a total of  TEN (10) active New Release skus' at Walmart for the first week of November - which is especially impressive considering that most locations only stock 96 New Release skus (inclusive of the Major Studio mega hits!). 

Update on TCA motions / matter

The Hearing for the HHSE Motion to Dismiss, etc., in the TCA matter is being heard on Oct. 20, not Oct. 5, as mistakenly reported earlier in a blog entry.  The dates were transposed with a filing made today (Oct. 5) in the DC photographer's case.  In any event, the HHSE attorney's are optimistic that HHSE the legal positions set forth in the HHSE filings in both matters are meritorious.

Sequence Number: N/A
Category: Special Sets
Schedule Date and Time:10-20-2016 10:30 AM - 10-20-2016 10:45 AM
Judge Name: 03 Powell, Mily R. (03)
Case Number: CACE15006707
Style:TCA Global Credit Master Fund, LP Plaintiff vs. Hannover House Inc, et al Defendant
Motion: Motion to Vacate Final Default Judgment
Scheduler:Lerner, Allan M
Phone Number: 9545638111
Created Date:08-23-2016 4:01 PM
Status: Ready

Week of Oct. 3 - 7 / Lots in Motion

Greetings HHSE Friends, Fans & Followers - we are excited about this coming week at Hannover House / Medallion, as our scope of activities covers all bases (from theatrical and video releases, to legal resolutions and corporate governance).

1).  We will be making two official Q4 Theatrical Release announcements this week (wire service releases / trade & consumer).

2).  We will be announcing our Q1 / 2017 Home Video / VOD line up this week.

3).  The long-delayed Q2 Quarterly filing / results will be published this week.  WE ARE INFORMED BY THE OTC MARKETS THAT OUR "CURRENT" REPORTING STATUS SHOULD BE EFFECTIVE BY E.O.D. WEDNESDAY!  UGH - NOW WE'RE BEING TOLD "PROBABLY TOMORROW" (as of Wednesday afternoon).  

4).  Two major (and two minor) legal matters will be resolved or otherwise satisfied to the satisfaction of our legal team's strategies.

5).  Final move-out of our warehouse facility (with new duties handled by Technicolor) will be completed in the next few days (but possibly, NOT by this coming Friday).

For those of you interested in details, more is outlined below.  For the high-altitude thinkers, watch it unfold and see some interesting trade scrambling over the next few days.

ONWARD!

* * * * * *

1).  Theatrical Releases - "CHOSEN" the World War II Action-Thriller (based on a true story) starring Harvey Keitel will enjoy an awards-qualifying theatrical release, likely to be Nov. 11, depending on some confirmation from key theatre locations, as well as the timing of our media day and talent availabilities.  "SPICES OF LIBERTY" - A Bollywood-style romantic comedy that has been compared to "My Big Fat Greek Wedding" may launch as soon as Oct. 28, depending upon pending locations in San Francisco, Boston and New York City (Manhattan proper) that we expect to lock-in by this Wednesday.

2).  For the Home Video  and Video-On-Demand media platforms, HHSE / MEDALLION will be announcing three new releases in January, four for February and six for March, 2017.  One title (previously "teased") is LOST IN THE PACIFIC starring Superman Returns' BRANDON ROUTH - which, based on mass merchant retailer support, will clearly be the company's largest initial shipment for DVDs and BluRays ever for a single title new release (even exceeding the results that 20th Century Fox delivered for the company with "Twelve.").

3).  The Q2 results will finally be published this week, and as stated previously, reflect the Company's new (and conservative) method for the recognition of DVD revenues from consignment retailers (specifically Walmart, Target and Best Buy).  Previously, the Company was booking the gross value of products being sold, less a significant "hold back" for potential returns (based on the Company's overall historic returns rate X a factor of 2).  With the slow death of the wholesaler Alchemy Entertainment, and their cut-off of payments to HHSE over a year ago, the Company was advised to book revenues for DVDs and BluRays on a "cash" basis, rather than accrual, as the prior accrual methodology relied on an estimated net amount, and required a subsequent adjustment to match ultimate net sales vs actual returns.

4).  The "big" legal matters this week are TCA and JSJ.  The TCA case is being heard on Wednesday, and the Company's counsel is expressing confidence in prevailing. The JSJ matter will be converted to a financial judgment this week, with a judicial declaration for the actual amount of the notes plus interest (as HHSE sought for the past year), as opposed to the goal of JSJ to obtain usurious "conversion" rate equity shares.  The "small" legal issues are the DC Photographer case (in which our counsel is confident of prevailing on setting aside the judgment and adjudicating based on the law and absence of merit), and the AMITYVILLE producer dispute, which our attorneys expect to be resolved in HHSE's favor in the next few days.

5).  After 8-years and $350,000 in rent payments to the landlord, HHSE will be moving out of the warehouse location in Springdale within the next two weeks - and occupying executive office suites in the Fayetteville business district.  We are pleased to be 'getting out of the warehousing business' and turning this task over to Technicolor, after a few years of struggling to resolve "Twelve" debts incurred with them. They are a great replication and warehousing partner, and we're happy to be back on the Technicolor team. Separating Executive and Administrative functions from Operations will enable HHSE management to focus on "the big stuff," the big projects, the big picture so to speak.  It's an exciting time and an exciting move that will be presented in greater detail as a free-standing media announcement.

Week of Oct. 3 - 7 / Lots in Motion

Greetings HHSE Friends, Fans & Followers - we are excited about this coming week at Hannover House / Medallion, as our scope of activities covers all bases (from theatrical and video releases, to legal resolutions and corporate governance).

1).  We will be making two official Q4 Theatrical Release announcements this week (wire service releases / trade & consumer).

2).  We will be announcing our Q1 / 2017 Home Video / VOD line up this week.

3).  The long-delayed Q2 Quarterly filing / results will be published this week.  WE ARE INFORMED BY THE OTC MARKETS THAT OUR "CURRENT" REPORTING STATUS SHOULD BE EFFECTIVE BY E.O.D. WEDNESDAY!

4).  Two major (and two minor) legal matters will be resolved or otherwise satisfied to the satisfaction of our legal team's strategies.

5).  Final move-out of our warehouse facility (with new duties handled by Technicolor) will be completed in the next few days (but possibly, NOT by this coming Friday).

For those of you interested in details, more is outlined below.  For the high-altitude thinkers, watch it unfold and see some interesting trade scrambling over the next few days.

ONWARD!

* * * * * *

1).  Theatrical Releases - "CHOSEN" the World War II Action-Thriller (based on a true story) starring Harvey Keitel will enjoy an awards-qualifying theatrical release, likely to be Nov. 11, depending on some confirmation from key theatre locations, as well as the timing of our media day and talent availabilities.  "SPICES OF LIBERTY" - A Bollywood-style romantic comedy that has been compared to "My Big Fat Greek Wedding" may launch as soon as Oct. 28, depending upon pending locations in San Francisco, Boston and New York City (Manhattan proper) that we expect to lock-in by this Wednesday.

2).  For the Home Video  and Video-On-Demand media platforms, HHSE / MEDALLION will be announcing three new releases in January, four for February and six for March, 2017.  One title (previously "teased") is LOST IN THE PACIFIC starring Superman Returns' BRANDON ROUTH - which, based on mass merchant retailer support, will clearly be the company's largest initial shipment for DVDs and BluRays ever for a single title new release (even exceeding the results that 20th Century Fox delivered for the company with "Twelve.").

3).  The Q2 results will finally be published this week, and as stated previously, reflect the Company's new (and conservative) method for the recognition of DVD revenues from consignment retailers (specifically Walmart, Target and Best Buy).  Previously, the Company was booking the gross value of products being sold, less a significant "hold back" for potential returns (based on the Company's overall historic returns rate X a factor of 2).  With the slow death of the wholesaler Alchemy Entertainment, and their cut-off of payments to HHSE over a year ago, the Company was advised to book revenues for DVDs and BluRays on a "cash" basis, rather than accrual, as the prior accrual methodology relied on an estimated net amount, and required a subsequent adjustment to match ultimate net sales vs actual returns.

4).  The "big" legal matters this week are TCA and JSJ.  The TCA case is being heard on Wednesday, and the Company's counsel is expressing confidence in prevailing. The JSJ matter will be converted to a financial judgment this week, with a judicial declaration for the actual amount of the notes plus interest (as HHSE sought for the past year), as opposed to the goal of JSJ to obtain usurious "conversion" rate equity shares.  The "small" legal issues are the DC Photographer case (in which our counsel is confident of prevailing on setting aside the judgment and adjudicating based on the law and absence of merit), and the AMITYVILLE producer dispute, which our attorneys expect to be resolved in HHSE's favor in the next few days.

5).  After 8-years and $350,000 in rent payments to the landlord, HHSE will be moving out of the warehouse location in Springdale within the next two weeks - and occupying executive office suites in the Fayetteville business district.  We are pleased to be 'getting out of the warehousing business' and turning this task over to Technicolor, after a few years of struggling to resolve "Twelve" debts incurred with them. They are a great replication and warehousing partner, and we're happy to be back on the Technicolor team. Separating Executive and Administrative functions from Operations will enable HHSE management to focus on "the big stuff," the big projects, the big picture so to speak.  It's an exciting time and an exciting move that will be presented in greater detail as a free-standing media announcement.

Footrace to Year-End: An Overview of what is likely to be a RECORD year for HHSE / Medallion!

Greetings HHSE Friends & Followers.  "The silence has been deafening," as reported to us by many shareholders.  Why has the company refrained from P.R. Announcements, I.R. outreach, customary (scheduled) filings, as general communications?

The detailed answers would be voluminous.  But the SHORT answer is: Establishment of Corporate Priorities (and a focus onto those areas of greatest immediate and long-term benefit to the Company).

In the past year, so many new opportunities have arisen, and so many market changes have occurred, that an evaluation of what is working best, and how to "do more of it" has become essential.

While handling the revisions and updates to the Company's Form 10 filing - and making the in-depth disclosures and managerial analyses required for a proper registration - one can take a high-altitude view of the business that the day-to-day distractions of managing a complex business can sometimes obfuscate.  The patterns and data results that have emerged suggest that some of the Company's activities are less attractive than others - and by a significant degree.

For instance, two areas that are NOT meeting management's hopes are:

1).  "Direct to DVD" Releases - the return-on-investment for low-end titles has fallen dramatically, as consumers are less willing to spend $9.96 on a no-name, non-theatrical horror video than in year's past.  As the sales have declined, the cost-of-goods has stayed the same, as we have an obligation to keep the Walmart and Best Buy shelves well stocked (even for "slow" moving titles).  This changing aspect of the market indicates that non-theatrical titles are less attractive now for HHSE / Medallion to release.

2).  "Low-End" International Sales - After a highly visible presence this year at Cannes - including a booth, multiple full-page trade ads, and four official market screenings - we have concluded that the international market for "low-budget" / non-A-star features is insignificant.  Most of the international licensors prefer to handle smaller films under "distribution deals" without paying an upfront licensing advance... and the only titles getting advances and big minimum guarantees are the higher-end, original productions.  Accordingly, the benefit of handling and promoting smaller titles for the international market is dubious.

... and two areas that are EXCEEDING management's hopes are:

3).  "Theatrical Services" - as major outlets (most notably NETFLIX and the PAY CABLE Networks) now REQUIRE some level of USA Theatrical release, the need for access to theatres has grown many-fold.  Accordingly, the access that HHSE / Medallion have to secure screens at the top theatre chains nationwide has become a valuable commodity - and source of "theatrical servicing fees."  This activity provides up-front payments to the Company - as opposed to prior business models in which the Company put up hundreds-of-thousands (or MILLIONS) of dollars in P&A Cash, Credit and Loans, only to have to wait YEARS for the revenue streams to pay it back (think back to the release of the movie "TWELVE" - and how painful that debt burden had been to the Company for the past five years). Additionally, we have found that MANY (if not MOST) of our paid, theatrical servicing clients have ALSO been engaging HHSE / Medallion to handle Home Video, Video on Demand and Television.  So our access to theatres has become a strong acquisition tool as well as a source of operating cash flow... and the side benefit is that mass merchants and major video buyers (including REDBOX KIOSKS) have a strong preference towards carrying videos of films with theatrical momentum.

4).  "Production Services" - As the worldwide film distribution market continued to mature in favor of bigger budgeted films, HHSE / Medallion have the challenge of trying to acquire rights to such titles.  We have found that buying finished films on the festival circuit is a costly endeavor... with bidding wars against the Major Studios, the Weinsteins and Lionsgate often jacking prices to unprofitable levels.  Instead, what we have found, is that facilitating the production of higher-end films is a smarter strategy for both controlling the distribution rights up-front... but also as a source of up-front "production services" fees for the Company.  Mid-level productions such as "Shadow Vision", "True Freshman" and "The Final Minute" provide reasonable cash-flow for overhead and operations... while mega productions such as "Mother Goose" and "AJA" are structured even more lucratively for the Company.  Having ownership of our own film gear and Grip Truck is another plus, as are the three State of Arkansas incentives for original productions (15% across the board; an additional 10% for Arkansas entities and residents; and additional 25% for technology positions and post-production under the EEDC).

So Parkinson, Shefte and Sims have been working to reorganize the DVD side to minimize costs and maximize efficiencies.  As the Company has been very pleased with the consistent success that Cinedigm has achieved in placing two or three titles PER MONTH into Walmart and Best Buy (and sometimes into Target), we are looking for ways to increase profitability.  Accordingly, over the next two months, HHSE new release DVD and BluRay fulfillment will be moved to Technicolor (Memphis) to save on freight, overhead and time efficiencies (and this is the warehouse facility where the Cinedigm distributed studios are shipped out from). 

We are also looking at providing more managerial attention to both the Theatrical Servicing activities as well as to the Production Services.

We remain commited to our existing product lines, but want to provide greater attention and emphasis into those areas of greatest benefit.  Below is a list of three titles already slated for Q4 theatrical release (there's another BIG title, a possible fourth Q4 theatrical release, but it's still in post-production at present and may not make it in time for Academy eligibility this year).  Also below is a list of upcoming DVD and BluRay placements for Walmart (and other Mass Merchants), showing an ongoing commitment to the physical home video side of the business.  Each of these titles is also being exploited day-and-date with home video onto Video-On-Demand Platforms, and 60-days later, the theatrical items will be available for subscription streaming through Netflix.

These managerial priorities impact the daily operations and affect the narrative of the Form 10 and business plan.  But they are the reasons that the Company has been incredibly QUIET for several months.  This is about to change, beginning Monday with a nice feature interview from Uptick Newswire and I-Heart Radio / as well as Investor's Hangout featured visibility.  There will also be traditional Newswire press releases, and enhanced visibility from social media platforms and websites.  The Q2 filings at long last will be released in the next few days, and as the Company feels prepared to provide information on the current status of the FORM 10 and the pre-build-up of features for VODWIZ, these will also be released (but not necessarily next week). 

We are appreciative of the extreme patience that our LONGS have provided to the Company - and know that you have suffered for months under a cone of silence from the Company.  We recognized that the Stock Price and Volume have suffered, and we hope that our ignition of outreach through information and disclosures will help reverse this currently low pricing status.

HAVE A GREAT WEEKEND > for you College Football Fans, the Oklahoma vs Ohio State game (7pm Eastern Time, Fox Sports) tomorrow could be Epic!

Q4 THEATRICALS

“SPICES OF LIBERTY” – Oct. 28 / Top 25 Markets / “Bollywood” specialty locations

https://www.youtube.com/watch?v=nR8iN23mfHU

“CHOSEN” – Dec. 2 – NY, LA, plus other top 10 DMA’s / Indie-Art film locations

https://www.youtube.com/watch?v=9P-ypYAjWDk

“STANLEY: A MAN OF VARIETY” – Dec. 16 / Top 25 Markets / Indie-Art film locations

http://www.imdb.com/video/user/vi3345331993

The June test release of “THE HOMELESS BILLIONAIRE” was a financial success. However, the film’s director has since commenced on some re-editing / remixing issues that he felt could be improved. Accordingly, the theatrical expansion dates for that release are not yet set.  The Company also is continuing to book playdates for “A REMARKABLE LIFE.”  Another title pegged for Academy Qualifying release, may not be completed by Dec. 16, and is not appearing yet on our schedules; but still may be added.

Q4 & Q1 DVD & BLU RAYS / MASS MERCHANTS (Shipping in Q4)

OCTOBER

BAD GIRL – Urban / Christian / Family

THE CONGREGATION – Urban / Christian / Family

DAY OF REDEMPTION – Action / Thriller

NOVEMBER

JOB’S DAUGHTER – Action / Thriller

REVELATIONS – Thriller / Christian

DINOSAURS OF THE JURASSIC (Walmart Canada) – Edu Documentary

JANUARY

PALI ROAD – Sci-Fi Thriller

LOST IN THE PACIFIC – Sci-Fi Thriller

DINOSAURS OF THE JURASSIC (Walmart USA) – Edu Documentary

FEBRUARY

BONOBOS: BACK TO THE WILD (Walmart USA)* - Nature Docu-Drama

SLEEPER CELL: THE ALGERIAN  (Walmart USA)* - Action / Thriller / Politica
COME OUT FIGHTING - Action / Adventure
GUEST HOUSE - Horror-Thriller

*  Both were previously PLANNED for release to mass merchants earlier via ALCHEMY, but were held back for release later,  once HHSE recognized the financial duress of Alchemy

UNION BOUND is now officially our TOP SELLING DVD of the year!

Greetings HHSE Friends & Followers - it's hard to predict which DVD releases will sell or not sell, which is why our release strategy calls for 3-titles per month in "different" (non-competitive) genres.  But as the packaged goods industry continues to evolve and mature, it's becoming clear that films with multi-city USA Theatrical Releases are rising to the top of the best-sellers list for HHSE-MEDALLION.  The Civil War Drama UNION BOUND is now into its FIFTH week in the Walmart New Release DVD section, which is shelf placement that must be earned through consistent and high weekly sales turns.  With two re-orders already placed for Walmart, there's no sign of this title losing momentum soon!

NOW SHIPPING!

The beat goes on...!  More HHSE / Medallion Releases for Walmart, Target, Best Buy and more!

BAD GIRL - a tasty, urban drama with a positive, pro-family message!