Where we have been... Where we are now... and Where we are going at HHSE...

Greetings HHSE Friends & Followers:

As we reflect back on 2017, HHSE Management is taking a few days to look at our past, present and future activities to help guide sage decisions.  2017 has been a momentous year for the company - due in large part to the attempted (but terminated) merger with Crimson Forest, and the subsequent re-focus of the company's primary activities and revenue streams.

Looking much further back - five, six, seven years and more - and looking forward in time for an equal time-frame, we can see trends and opportunities for HHSE and our shareholders.

First of all, we'd like to point out that Hannover House is unlike most any other "OTC Pinksheet" listed company.  We have been operating continuously since 1993 (24-years) and have been reporting to the OTC Markets since Dec. 2009 (8-years).  Statistically, most OTC listed equities are flashes-in-the-pan time wise... lots of Stock Hype / I.R. Promotions, insider share dumps, and quick closures.  That's definitely not HHSE.

As a result of this general trend for Pinksheet companies, a whole sub-industry of stock manipulators has developed that can impact OTC-Pinksheet listed companies (for the entirety of OTC markets in general, not specifically limited to Hannover House).  Like a gang of drunken hobos in public park - mumbling to each other with insane prognostications - the stock hobos are only effective against low-information shareholders gullible enough to actually read the chat-board postings of manipulative and fact-free ramblings.

Fortunately, every false statement made by the stock hobos or those manipulators attempting to "box" or otherwise control the HHSE stock price, can be easily countered with demonstrable facts.

So, let's take a few minutes to take a high-altitude look at the Company and where we are going.

WHAT IS OUR PLAN FOR GROWTH IN 2018 AND BEYOND?

*  We believe that HHSE is "one film away" from being a major independent studio. All it takes is any one of the many titles in our current release queue to become a surprise box officer performer such as "Lady Bird" or "Get Out" and we are suddenly a $100-MM company.

*  We have an impressive slate of titles for 2018 and 2019 - and two terrific distribution partners for North America (Cinedigm Entertainment and Sony Pictures Home Entertainment) - as well as our direct relationships with all of the major theatre exhibition chains. Our "lower-end" titles are much higher profile than in past years... and our higher-end titles are now genuine theatrical caliber contenders. We are positioned for the proverbial lucky break that happens when the right film is released at the right time...

*  Our recently re-focused Theatrical Release model is delivering huge benefits to our ancillary revenues... and our new partnerships with indie labels is providing access for the VODWIZ streaming venture, which truly could become "the tail that wagged the dog" for HHSE shareholders.

What else is worth noting for this long, holiday weekend?  Here are a few observations:

1).  Hannover House has Not Issued any Shares in 2.5-years.  See the chart below.  For the company's first two years as a public equity, the stock structure was quite stable.  For the past 2-1/2 years, the stock structure has also been stable.  But in 2013 and 2014, the company got involved in some ugly predatory lender situations, most notably TCA Global and JSJ, which precipitated a rapid growth in share issuances. The business model for both TCA and JSJ - as exercised against HHSE and many other borrowers - is to make repayment with cash as difficult as possible, in order to force a "conversion of the debt" into freely trading shares of the issueer at a dramatic discount-to-market. Such returns grossly exceed the legal usury law limitations in all states, and this general business practice is operating in a legally dubious space.  JSJ, for instance, refused to accept repayment from HHSE via a bank wire transfer (including all applicable, legal interest per the note), preferring instead to file a lawsuit (in Texas?!), in order to try to force repayment via shares at 200% or more interest.  These predatory lenders generally prey on companies that are unable to defend themselves, and therefore are forced to allow the lenders to squeeze out profits far in excess of lending laws through toxic-conversions; most of the time, these small borrowers are ultimately forced out of business.  However, this was not the case with Hannover House - as the company has a  operating business that is unaffected by fluctuations of our stock price and not dependent on the issuance of shares for capital. These toxic dilutions from 2013 and 2014 definitely hurt our shareholders, and hurt our "market cap," as demonstrated in the charts.  So, the Board voted to cease such forms of borrowing, and as a result, HHSE has not issued any new shares in 2.5-years.  Anyone predicting on a chat board or anywhere else that a "big dilution is coming" is mistaken.

2).  It Doesn't Take Much to Double or Triple the HHSE Share Price - Look at the market-cap spike for HHSE stock earlier this year (seen as June, 2017).  This increase in PPS was due to shareholder excitement about the prospect that a merger with Crimson Forest would provide HHSE with high-profile films to distribute.  The growth in PPS was not based on any increase in revenues (in fact, the time-distraction of the Crimson merger caused many 2017 releases to be delayed).  The PPS spike was driven solely by enthusiasm.

3).  Does HHSE Need a Merger Partner? - If the right opportunity came along that would provide HHSE with a reliable source of high-end theatrical titles, we would be responsive to consider such opportunities. However, the programing philosphy ultimately revealed by Crimson Forest did not conform to North American market conditions, in HHSE's opinion. When the promised operating funding didn't materialize, the promised high-end productions turned into low-end films, and the promised "big" releases all turned out to be Mandarin-language releases, we knew that the partnership would not deliver what HHSE wanted for our step-up to major independent status.

4).  What's in Store for the first half of 2018?   

a).  Release Activities:  January will see the theatrical release of "BLOODFEAST" - delayed since July due to MPAA re-cut needs.  February will see a massive placement of DVDs and BluRays for "BATTLECREEK" (street date Feb. 6).  That same week, on Friday (Feb. 9), HHSE will commence the initial theatrical launch of "DEATH HOUSE" to theatres.  In April, three titles will be released via Sony Pictures Home Entertainment (including "DAISY WINTERS");  in May, HHSE will release "THE RIOT ACT" to theatres and Cinedigm will release DVD's and BluRays of "THE LENNON PROJECT" for the Company. Other titles in queue for theatrical and / or home video during the first half of 2018 include "MUSE", "INSOMNIUM", "IDENTITY CRISIS", "SLEEPER CELL", "DINOSAURS OF THE JURASSIC" and "SACRED HEARTS" (all but the last title were planned for 2017, but delayed during the Crimson merger pursuit).  

b).  Corporate Governance:  HHSE will be re-filing a Form 10 Registration with two full years of audits (2016 and 2017) early this coming year, during the first few weeks; the CPA review is already underway and much of the documentation and procedural steps for the audit were already assembled during 2017 while planning for the Crimson merger.  We feel that a registration of the shares and the subsequent uplist to OTC:QB will attract more investors and some institutional funds... resulting in a higher anticipated daily trading volume, and a predicted much higher HHSE stock price (based on business results, industry fundamentals and the proven power of Shareholder Enthusiasm). 

c).  New Ventures - With Sony and Cinedigm handling selected HHSE releases, our management time can be redirected towards theatrical releases, higher-end acquisitions (including productions) and our VODWIZ streaming venture.  As will be seen in our 2017 filings, theatrical release activities are the engine that is now driving HHSE revenues in all other arenas.  Theatrical titles get more shelf space and priority placement when released to home video; theatrical titles get larger license fees from Netflix and Television licensors;  and theatrical titles provide two direct revenue streams for HHSE in the form of both servicing fees and revenue participations.  The current mass merchant and key video retail support for "BATTLECREEK" evidences the sales boost that a targeted, limited theatrical release can deliver for the subsequent home video release.

5).  Thoughts on the HHSE Stock Chart - The chart below is divided into two sections.  The top section shows the "approximate market cap" at six-month intervals beginning in June 2010 and continuing through to this week. The Market Cap was calculated by the total of all shares in issue, multiplied by the closing price of the stock during a one-week period during the stated month.  The bottom section of the chart shows the total SHARES IN ISSUE for the company during this same time frame. The dark-blue shares represent those that are "restricted" from sale, and the light-blue shares represent the total share count of restricted plus unrestricted shares for that time period.

Perhaps the most visible trends to see on this chart are that the company did very little in share issuances for the first two years... and none for the past 2.5-years - as seen by the flat-line of total shares in issue.

The next interesting item of note is the tremendous PPS Spike that occurred earlier this year, at which time the Market Cap jumped from $5.4-MM to $24-MM in just a few month's time.  What's interesting about this result is that the company was functionally frozen from new releases during that time, so the sudden shareholder enthusiasm cannot be attributed to improved revenues... it can only be viewed as a reaction to the prospective merger with Crimson.  The current Market Cap of $12.4-MM has been stable for quite a few months now.

A third observation can be seen during the "heavy dilution" time-frames of 2013 to the end of 2015, when TCA (via MAGNA) and JSJ were flooding the market with toxic-conversion shares. What is interesting about this? Well, the market cap stayed surprisingly stable during this dilution... meaning that the average PPS went DOWN while the total float went UP, but the overall Market Cap remained steady.  HHSE Management believes that the Market Cap remained relatively steady during these dilution times due to Investor Relations / Stock Promotions. As the toxic-lenders dumped their HHSE shares onto the market, some effort was being expended (by them or third parties) to create an investor market for their share dumps... which is another reason why HHSE management hates the concept of these toxic-conversion notes.  It also answers the question that some shareholders have posted to HHSE management over the past few years about "why aren't you doing IR / Stock PR now?" The answer is that we are are focused on building the fundamentals of the business rather than on creating a momentary spike in PPS interest while some third party lender dumps out shares.  We are not philosophically opposed to I.R. and new investor outreach. We just feel that the cost of such promotions would be best utilized after our Registration and other major events in the works.

There are more thoughts and developments to share... watch this blog over the holidays, and watch for news releases occuring between Christmas and New Years, as well as during the first week of January.  Happy Holidays / Merry Christmas / Happy New Year and Best Wishes to all our HHSE shareholders!

HHSE VODWIZ welcomes Production Master Technician EARL HALE to our Team!

Greetings Hannover House Friends & Followers - Just in time for the Holidays, we are pleased to announce the engagement of EARL HALE as Technical Services Director for VODWIZ and Hannover House.  Earl has an impressive resume in video production, mastering and technical services, including multi-year directorships at Walmart TV and the Media Center of the University of Arkansas Global Campus.  A formal press release will post in early January, along with VODWIZ supplier and status news.

Watch this blog for an informative overview on Saturday of Hannover House for the past two years, as well as a sneak-peek into major activities for the company in 2018!

...And a very HAPPY Thanksgiving to all HHSE Shareholders!

Greetings to all HHSE Friends & Followers on this pre-Thanksgiving Wednesday!

As we reflect back on the past year, and our current situation, we find much to be thankful for. Some business ventures don't always work out as planned, but circumstances keep working out for the better. The results of this past year generated some definitive conclusions:

1).  COMMERCIAL?  We think it's safe to say that U.S. Theatrical and Video audiences are not anxiously awaiting the next "Mandarin-language" action film.  Despite big production values and big China box office results, the USA theatres and video retailers cannot get traction with films such as "Shock Wave" and "Extraordinary Mission."

2).  GOOD PRODUCT SELLS - U.S. Theatrical Exhibitors and Video Retailers have proven that they WILL strongly support "quality" films with production values, recognized stars and good performances.  Case in point:  our tiny theatrical release of "BATTLECREEK" has now sparked RECORD home video pre-orders for Hannover House - with placements at WALMART, TARGET, BEST BUY, FAMILY VIDEO and "awaiting" final approval from REDBOX.  This is the first HHSE video heavily supported by TARGET in five years!  Our advanced-buzz for "DAISY WINTERS" suggests even more impressive results are likely to follow!

3).  UPLIST - While HHSE does need to "uplist" - we DON'T need to do a corporate-merger with another entity to achieve this goal.  We were enticed by the offer of working capital and access to production funds from Crimson Forest, and thus our long, slow-dance this past year to try and complete a corporate merger.  But in the end, we have determined that we do NOT need to dilute our shareholders by 42% (or any amount) in order to become fully registered and uplisted.  Fortunately, the time we spent attempting to complete the Crimson merger enabled HHSE to get our audit materials and records in order to quickly facilitate a re-filing of our Form 10 Registration promptly following 12-31-17.

Completion of third week for "THE RIOT ACT" Western Production

Greetings HHSE Friends & Followers - The "toughest" footage is now in the can... including all of the OPERA HOUSE sequences (with over 200 costumed characters and extras) and the "Main Street" Sequences (with over 40-animals, 100 extras and 70 truck loads of dirt!).  Only 1-1/2 more weeks of principal photography and this one will be ready for editing and post work.

Meanwhile, here's a link to some local news coverage of the shoot... including a last minute "cameo" recruitment of Executive Producers FRED SHEFTE and ERIC PARKINSON to appear as the Newspaper Photographers (anything to save a buck!).

http://www.4029tv.com/article/movie-filmed-on-historic-main-street-in-van-buren/13639564

To protect the confidentiality of the cast and story elements, the local news journalist on the above story was prohibited from shooting during actual filming of THE RIOT ACT.

THE RIOT ACT is based on the true story of romance, murder and revenge that occurred at the Van Buren Opera House in 1903. The film is planned for an APRIL 27, 2018 Theatrical Release through Hannover House, with top USA Markets targeted.

Nearly 35% of the film's production financing is coming from the State of Arkansas incentive and rebate programs... additionally, the Van Buren Chamber of Commerce, the Convention & Tourism Bureau and the Arkansas Heritage funds have all contributed to provide materials, props, goods and in-kind services equivalent to more than $500,000 in production cost savings. One of the key benefits to making THE RIOT ACT as the first HHSE "in-state" production in Arkansas under the new incentives program, is to prove the accessibility and benefits of the local production support and State incentives, in anticipation of the ambitious "MELTDOWN" feature - planned for principal photography early next year at the Arkansas Nuclear One plant outside of Russellville, Arkansas.

http://www.entergy-nuclear.com/plant_information/ano.aspx

ONWARD>>>>

 HHSE President  FRED SHEFTE atop the lift-gate for Grip Truck 1, utilized on this shoot primarily for the Dolly, Tracks and 12-k HMI lights for the night-time sequences.

HHSE CEO ERIC PARKINSON and FRED SHEFTE on the set at Historic Van Buren

Principal Photography is utilizing the 8K format of the RED MONSTRO, with High-Speed Cooke Lenses, liberal use of Steadicam sequences and the Elemack Spyder pedestal dolly and articulating jib-arm.

What happens when a couple of Exec. Producers visit the set? Sometimes they get recruited for bit parts... and in this case, Shefte and Parkinson portray the Newspaper Photography team for the Fort Smith Times (1903).

If "the South Rises Again," Shefte will be ready to document the next Civil War on this 1890's large format box camera.

General Updates on Various HHSE Corporate / Production & Distribution Activities

Greetings HHSE Friends & Followers - As requested and promised, the following blog highlights some updates on key issues of interest to our Shareholders.

1).  TIMING OF Q3 FILING - We anticipate being a day late on this filing, with the OTC Markets posting expected on Thursday, Nov. 16.

2).   VODWIZ UPDATE - As anticipated, we have closed a major studio venture that will provide tonnage of product to VODWIZ, including a large quantity of recent, theatrical hits.  The totality of programming that will be available to consumers through VODWIZ appears to be on track to being second only to Amazon at this point. We see VODWIZ as a major portal for home entertainment digital streaming access, and potentially "the tail that wags the dog" so to speak. Additionally, we are about a week away from the anticipated finalization of a private funding structure to finance the costs associated with building the VODWIZ website (to Amazon Digital infrastructure standards), and all other pre-launch and initial consumer launch costs for this venture.

3).  IRS ACKNOWLEDGES LEVY ERROR - HHSE management is pleased to report that a levy issued by the IRS for "estimated payroll taxes" has been corrected and relieved after providing required documentation for the payroll reporting periods previously in question. We have been told that the IRS levy will be lifted (and customers notified) within the next 21 days, and the future reporting of payroll taxes (through our third-party payroll service) will correctly identify the Employer I.D. Numbers that sparked the arbitrary / estimated assessment in the first place.

4).  WEEK THREE OF "THE RIOT ACT" FEATURE PRODUCTION - the ambitious, period western (based on a true story and set in 1903) continues to shoot in and around Fort Smith, Arkansas and Van Buren, Arkansas.  We are scheduled to wrap principal photography next Wednesday (just before Thanksgiving). Although we are limited in our ability to publicly release cast photos and other production details, we can share a few "approved" stills below that were previously released through social media.

For THE RIOT ACT feature - the historic city of Van Buren, Arkansas, has been converted into a 1903 Western Town with the addition of 70-truckloads of topsoil onto the main street (and the voluntary closure of auto access and most businesses for five days).

Producer Lauren Sweetser ("Winter's Bone") also portrays the female lead in THE RIOT ACT

The Arkansas-Missouri Railroad has been restored to 1903 period look and utilized in several key scenes for THE RIOT ACT.

Street Scenes and Opera House sequences for THE RIOT ACT have utilized up to 300 fully costumed extras, plus horse, wagons, cattle and other elements of production value.

5).  DISTRIBUTION ACTIVITIES - HHSE is currently gearing up to manufacture and fulfill the large video manufacturing required to fulfill the record-breaking DVD orders received for BATTLECREEK and BLOODFEAST.

The company is pursuing release activity for the long-awaited (and delayed) theatrical launch of BLOODFEAST, as well as the upcoming DEATH HOUSE, GETTING GRACE and additional markets for the WWII drama CHOSEN.

Other distribution activities include the video releases now in motion for both BONOBOS and ALGERIAN (now renamed as "SLEEPER CELL"), as well as the romantic comedy SPICES OF LIBERTY, the Red Bull motorsports actioner RIDE UNITED, and the also long-awaited DINOSAURS OF THE JURASSIC.  Other home video titles include the thrillers IDENTITY CRISIS, MUSE and INSOMNIUM.  Many of these releases were intentionally delayed during the protracted "merger" activities between Hannover House and Crimson Forest, which have thankfully been removed as a distraction from our ongoing productivity.

On the publishing front, the re-release of the novel "QUIETUS" (in "trade cover" format) is on schedule for the Barnes & Noble promotion in February, which will be supported with ads in the New York Times Book Review, Publisher's Weekly and Library Journal, as well as email campaigns, social media and a high-profile publicity outreach promotion from FSB Associates.

Lots of good stuff on our plates and in motion...

Battlecreek Theatrical Launch - meeting and exceeding our ancillary commitments!

Greetings HHSE Friends & Followers - Friday (Nov. 3), marked the launch of BATTLECREEK into  27 theatres in 18 different markets across the USA.

Some shareholders have expressed the need for a clarification blog as to why HHSE has released BATTLECREEK to only 27 theatres and an explanation of the manner pursued - in hopes that this information will illuminate the overall ancillary business model for those who are unfamiliar with the film industry.

What is the rationale for doing a limited theatrical release with limited advertising support? Isn't that a guarantee that a film will not hit a good box office number?

Yes, that's correct. Perhaps blindingly obvious to those who understand our strategy.  If our 27 theatres playing BATTLECREEK had SOLD OUT EVERY SEAT FOR EVERY SHOWTIME this past weekend, we might have grossed about $200,000 - because unlike a film such as THOR which played in large auditoriums, smaller indie releases are usually in 60-to-90 seat auditoriums, and often "split" (shared auditorium) with another indie release. But we didn't sell out all of our shows and we didn't hit $200,000. We generated about $30,000 - and will likely finish the first week with about $45,000 in box office gross.

So, why spend $35,000 in "hard costs" plus $15,000 in "deferred fees" in pursuit of only $45,000 in total box office grosses (that will "settle" out after the theatres keep their share to about $20,000 back to HHSE)? The math from box office returns alone does not seem sustainable. That's correct. It's not a logical venture until you see the massive impact this sort of theatrical release delivers for all other ancillary revenue streams.

Our goal with BATTLECREEK was to enhance the visibility and credibility of the film so that we could MAXIMIZE overall revenues for HHSE.  By opening the film in "at least 8-of the top 25 largest markets" we qualified the film for NATIONAL TV coverage - elevated its stature for home video - positioned the film for a lucrative Netflix contract - qualified the film for a Redbox kiosk placement - and legitimized the film for international markets. From a modest investment, we reap major returns.

How major? Well - based on video preorders already received from Walmart, Target, Best Buy, K-Mart and Family Video - BATTLECREEK will be the largest new release video shipment since 20th  Century Fox Home Video shipped over 250,000 units of "TWELVE" for HHSE back in January, 2011. Because of what happened THIS WEEKEND with BATTLECREEK in theatres, HHSE will have our biggest December ever.

Will HHSE ever have a movie that has more significant box office potential? Absolutely - in fact,,we have solid indications that our Dec. 1 release of DAISY WINTERS could have that special "spark" with holiday movie audiences. If it does, great. If it does not, still great, because we are spending theatrical funds conservatively and  in a targeted manner so that we are NOT dependent on box office magic to thrive. Meanwhile, national TV audiences have ALREADY seen feature stories on BATTLECREEK on ACCESS HOLLYWOOD, ENTERTAINMENT TONIGHT and EXTRA.  Tomorrow morning, ALISON EASTWOOD is slated for FOX AND FRIENDS and HOME AND FAMILY (Hallmark Channel)... major national TV placements that would NOT occur for a "direct-to-video" release... but are available for theatrical titles... and ironically DRIVE the home video demand.

Successfully releasing independent films is a strategy and process involving multiple revenues streams and steps to achieve the best, bottom-line result.  We are happy with the launch of BATTLECREEK, and know that our year-end financials will demonstrate the validity of this strategy.

OPENING NIGHT Screening event was open-to-the-public at the Laemmle's Music Hall in Beverly Hills, where the film has a one-week engagement.

Director ALISON EASTWOOD answers audience questions after the Beverly Hills screening.

In addition to National TV shows, Alison Eastwood also appeared last week on the local NYC program "GOOD DAY NY" and on the L.A. based afternoon news for KABC-TV.

Alison taped her BATTLECREEK segement for Hallmark's HOME AND FAMILY which airs on Monday, Nov. 6, nationwide.

Battlecreek opens FRIDAY in Key Markets!

Greetings HHSE Friends & Followers - Watch for BATTLECREEK publicity on major TV news and entertainment shows this week... and check out your local theatre Fandango or other listings for locations near you.  The initial 25 locations opening this Friday are listed on the film's website:

www.BattlecreekFilm.com

There is also a special event occurring this Friday at the Laemmle's Music Hall in Beverly Hills, with surprise celebrity guests, cast and crew to support director Alison Eastwood and her Q&A.  Event is open to the public, standard theatre admission required.  SEE L.A. TIMES FRIDAY AD BELOW.

Watch for updates!

Update on HHSE and VODWIZ Activities

Greetings HHSE Friends & Followers - This is an exciting week for HHSE for several reasons, including the following:

1).   BATTLECREEK - the acclaimed feature drama from director Alison Eastwood, opens in theatres THIS FRIDAY (Nov. 3).  On Wednesday and Thursday, Alison will be in New York City making key national TV Talk Show appearances.  On Friday morning, Alison has THREE major TV show appearances in Los Angeles. And on Friday night, Alison (along with family members, friends and production personnel) will conduct a Q&A at an "open to the public" screening event at the Laemmle Music Hall Theatre, 9036 Wilshire Blvd., Beverly Hills at 7:30-pm. 

The initial response to Battlecreek from theatres and key home video buyers was strong, and this encouraged HHSE to expand the release from the original plans of ten (10) locations, to the current theatre count of twenty-one (21) locations opening this weekend... with additional expansion dates planned through the end of the year.

Watch this blog on Wednesday, Thursday and Friday as Alison completes her talk show appearances, and HHSE is allowed to release the specifics of each program!

www.BattlecreekFilm.com

2).   THE RIOT ACT - Saturday (Oct. 28) was the first day of principal photography on the HHSE western-thriller, THE RIOT ACT, filming in Fort Smith, Paris and Van Buren, Arkansas.  Based on the true story of a 1903 romance, murder and revenge plot that occurred at the historic Van Buren Opera House, THE RIOT ACT marks the feature film directoral debut of a talented young filmmaker, Devon W. Parks.  Filming is scheduled to be completed on Nov. 25, and the film is slated for theatrical release in April (2018). Watch this blog for news of key cast members!

3).   VODWIZ UPDATE - there's another MAJOR STUDIO ALERT in the works!  Over the past three years of development, two Major Studios (each offering a small "test quantity" of titles for VODWIZ), were secured to support the initial launch of this streaming operation.  Now, we are poised for a very major development of a third Major Studio with over 500 high-profile, ready-to-place titles available for the VODWIZ streaming platform.  HHSE key managers (Fred Shefte and Eric Parkinson) are meeting at the studio in southern California on Friday to discuss the logistics of this venture, which is already documented through a participation term sheet. Watch this blog for updates this coming weekend. 

4).   AFM / ACQUISITIONS - A significant new feature film title has been acquired by HHSE for distribution in North America - which is planned for a formal "American Film Market" (A.F.M.) announcement on Saturday!

As the worldwide entertainment marketplace continues to mature, consumers, theatrical exhibitors and video retailers are migrating towards the support of higher-profile productions (at the expense of lower-end, lower-budgeted films). Generally speaking, most of the film and video properties being sold at the A.F.M. are micro-budget and lower-end titles that no longer meet the evolving entertainment marketplace. But every once in awhile, a gem will emerge, and we are pleased to have identified such a release for acquisition. Watch for the Saturday announcement details!

HHSE Board of Directors approves Uplisting / Registration Costs

Dear HHSE Friends, Followers & Shareholders:  At a special meeting of the Board of Directors of Hannover House, Inc., held on Thursday, October 19 at 11:00-am, the Board voted unanimously to immediately reinstate the prior filing activities to register the company's stock shares with the Securities and Exchange Commission (Form 10).  The Board also authorized the following budgetary expenditures - to be funded from ongoing cash flows - to promptly complete this task:

HHSE
Steps and Budget for UPLISTING
Item	Description	Amount
1	Internal Data Entry	$          4,000
2	Completion of New Library Valuation	$        20,000
3	Outside CPA Review	$          4,500
4	PCAOB Audit	$        50,000
5	Legal Review & Drafting	$          6,500
6	Registration S.E.C. Filings & XBRL	$          3,250
	FIRST TIME - UPLIST REGISTRATION COSTS	$    88,250
	Ongoing Quarterly Auditor's Review	$          5,000
	Ongoing Quarterly Attorney's Review	$          2,000
	Annual Review of Q4 & prior 3-Q's	$        20,000
	Annual Attorney review and drafting	$          3,000
	ANNUAL MAINTENANCE TOTALS	$    44,000

The one-time costs for the registration / uplist are estimated at $88,250.  The ongoing (annualized) maintenance costs are estimated at $44,000 (inclusive of the Quarterly Reviews by the PCAOB Auditing firm, and the annual year-end report and legal review).

Based on current cash flow and resources - and considering the anticipated benefits to the Company and its shareholders for HHSE as a fully registered equity - the Board has authorized the immediate implementation of this plan and the authorization of these expenditures.

The Board believes that Fully Registered Shares will be more attractive to HHSE program suppliers and investors - as well as to institutional investors and hedge funds - and that pursuing these activities now is a good use of ongoing cash flows.

(GETTY IMAGES Press Coverage / NYC Oct. 5, 2017)
ERIC PARKINSON (C.E.O.), DESIREE GARNIER (Director of Marketing), 
FRED SHEFTE (President)

HHSE - Blog Update / Shareholder News Summary

Blog Update / Shareholder News Summary

Over the past few weeks - following the Sept. 30 "deadline" provided to Crimson Forest Entertainment Group regarding compliance issues and documents - HHSE managers have received multiple emails and calls asking for an update and strategy report.  Now, after the formal deadline and subsequent "cure" periods have elapsed, we can finally discuss and disclose the status of the corporate merger and what Hannover House has implemented.

The purpose of this BLOG is to provide our shareholders with a current summary / overview of the principal activities underway; a more formal OTC Markets filing will reflect the additional details of the corporate merger and uplist activities - and wire service press releases will better elaborate the new titles (acquisitions and productions) and ongoing theatrical, video, V.O.D. and International distribution achievements.

1).    Status of Crimson Forest Merger / Uplist Activities - Absent of crucial Crimson Forest documentation and financial support materials that are required for a PCAOB audit, there is no way to bring Crimson Forest "current" (as a fully reporting equity) and as such, there is no good path to facilitate proceeding with the planned corporate merger. Technically, we COULD proceed with the merger... however, Hannover House shareholders would be trading a robust daily equity (in HHSE) for shares in a "STOP SIGN" equity with functionally no trading volume and no path to ever restore itself to fully reporting status (CRIM). This made no sense to HHSE managers - and we put forward a Herculean effort to try and proceed with the merger. But at the end of the Sept. 30 deadline (and a subsequent "cure" period), we felt enough time and effort had transpired, and that alternative corporate paths would bear fruit for our shareholders more quickly.

The past six months have not been wasted, however, as the activities to bring Crimson Forest "current" have been mirrored by HHSE - and our books and records for 2016 are fully completed; as for the current fiscal year (ending 12/31/2017), these can be closed out and submitted to the auditors by January 5.

Additionally, many of the key deals now in place for HHSE were sparked by enthusiasm and introductions resulting from the planned merger.  For instance, five of our highest profile titles came as a result of contacts that occured after publicity on the merger activities appeared in industry trades; the Sony Pictures Home Entertainment, Random Media and Orchard distribution pacts occurred following a burst of publicity momentum on Hannover House; the production funding for SHIMMER and RIOT ACT were sparked from meetings that were originally merger-related; new production funding for MOTHER GOOSE and MELTDOWN includes financing presales from China (contacts that were originally introduced through Crimson Forest and Cannes meetings, but not part of an ongoing Crimson Forest structure); and last but not least, the VODWIZ streaming venture has since closed a deal for 2,006 additional, new titles (New American Library) and partnered with Amazon Digital Services for hosting and operations. These are significant, material-level major events for HHSE.

On the negative side, we have lost a lot of time and momentum this past year. The energy required to work on the Crimson merger meant that many of our own releases were delayed - and thus our revenues from those titles were delayed; the momentum for our own registration was transferred over to the Crimson restoration project; and funding anticipated for major features from Crimson turned out to be cast-dependent and "Mandarin-skewed" in both story-line and market-appeal... which was not what we had been led to believe.  We don't believe that Mandarin-language releases such as "Shockwave", "Extraordinary Mission" and "Tag Along 2" will ever have more than an inconsequential revenue result from the North American marketplace - it's not what theatres and home video retailers in this market are supporting - and this was a creative and philosophical disagreement between HHSE management and Crimson principals.

So, we have agreed to a friendly dissolution of the merger - and a full restoration of our prior relationship as an arm's-length "distributor-and-supplier" structure. "PALI ROAD", "LOST IN THE PACIFIC" and "WHERE'S THE DRAGON" were all contracted under distribution agreements prior to December, 2016.  The merger talks with Crimson started in early January of this year, culminated in a meeting in L.A. on Jan. 25, and ended up with a fully executed document by early March. During those months - and continuing through until last week when the applicable "cure" period after our Sept. 30 performance deadline expired - Hannover House and Crimson were handling the above titles as if we were already a merged entity.  Now, on a going forward basis, the prior status will prevail.

Although the Crimson merger will not occur, the uplist will proceed, and the maturation of the company to "the next level" is already well underway.  We are now partnered with a Major Studio for distribution; we're Executive Producers / Worldwide Distributors on two CURRENT productions; we have two major titles in theatrical release (Nov. 3 and Dec. 1) and four "genre'" titles for more limited release in the next few months (see below); we have more than doubled the title library for VODWIZ, and partnered with the world's leading digital services operator (Amazon); we have new release DVD and BluRays in the pipeline for February, March, April and May (collectively generating over $4-million in gross shipments), and we are in final documentation of major financing agreements to cover the epic productions of MOTHER GOOSE and MELTDOWN (each of which is transformative in what they will do for HHSE's profile and revenues).

Check out the corporate updates below, and get ready to see some visible, measurable action from HHSE over the next few weeks. The future is bright and the future is RIGHT NOW.

2).    New Release Schedule (titles, media and dates);

Working closely with Regal Entertainment and other major theatre chains, HHSE has modified our theatrical release slate to better accommodate screen availabilities, promotional opportunities and for the avoidance of competitively similar releases from other studios.  Principal THEATRICAL title activities for the next few months are:

a).  BATTLECREEK - the acclaimed dramatic thriller from director ALISON EASTWOOD opens in two weeks (Nov. 3), in approx. 20 locations in key USA Markets.  The film's primary star is BILL SKARSGARD, well-known from his current smash hit "IT" (he plays Pennywise, the scary clown), and his upcoming Stephen King TV series, "Castlerock."  We have been fortunate to receive major media support for BATTLECREEK, including National TV show placements on:  ACCESS HOLLYWOOD, EXTRA, E! and ENTERTAINMENT TONIGHT, and Alison Eastwood interview appearances on FOX AND FRIENDS, THE VIEW, TALK, GOOD DAY NY and HOME AND FAMILY.  There will be an "Eastwood Family Screening Event" in Los Angeles on opening night (Nov. 3), which will be open to the public (and is expected to generate good attendance).

BATTLECREEK Director ALISON EASTWOOD is now on the P.R. Tour for HHSE.

Opening Night Screening of BATTLECREEK in L.A. for Eastwood Ranch, Friends, Family & the Public on Nov. 3  at the LAEMMLE MUSIC HALL THEATRE on Wilshire Blvd., in Beverly Hills, CA, is expected to generate solid attendance.

Proper acknowledgment for the participations and work of Hannover House / Medallion and HHSE Principal managers (Parkinson and Shefte) appear on HHSE Theatrical posters for all key releases.

b).  DAISY WINTERS - a much broader release (over 100 theatres) is set for December 1st for this awards-worthy drama featuring stunning performances from Brooke Shields and a breakout performance from young Sterling Jerins in the title role.  The Media support has already begun, fueled by the Hannover House MEDIA DAY in NYC on Sept. 26, plus a special event premiere at the Regal Union Square (NYC) on Oct. 5.  Already, Brooke has appeared on several national talk shows promoting DAISY WINTERS, including Bravo's WATCH WHAT HAPPENS LIVE and the highly rated TODAY SHOW on NBC. Much more to come, including major feature stories in People Magazine, USA Today, Closer, In-Touch, ACCESS HOLLYWOOD, EXTRA and E! TV.

When Superstar BROOKE SHIELDS wants to get a "fan photo" - 

you know your young leading lady (Sterling Jerins) is starbound!

Sterling Jerins and Brooke Shields with Producer Jane Badler at the Regal Union Square 

Special Event Screening, Thursday, Oct. 5 

NBC's TODAY SHOW on Friday, Oct. 6 reached 2.5-million viewers (for the 3:54 second interview), plus 1.7-million social media followers for the short (but cute) LIVE STREAM below (featuring HHSE's "proud parent" photobombing in the background!)

TODAY SHOW Livestream Promo - after a lengthy in-studio interview with Brooke:  "Amazing, Awesome, Powerful, Don't Miss this Movie!" were some of the takeaway quotes.

PEOPLE, US MAGAZINE and CLOSER all picked-up on our October Theme Photo Op with Brooke Shields at the HHSE - REGAL CINEMAS event in NYC, Oct. 5

c).  BLOODFEAST - Now that the MPAA has approved our fourth edit for "R-Rating Status" - we can FINALLY get mainstream theatres to book this picture... watch for a roll-out beginning Nov. 17 into top markets (staggered over a 2-month period).

d).   CHOSEN - this impressive World War II thriller continues to get theatrical bookings in key USA markets, and now into CANADA (Toronto, Ottawa, Calgary and Vancouver)... watch for playdates in December and January.

e).   DEATH HOUSE - A wild horror-comedy from the producer of "Bill & Ted's Bogus Journey" is building strong horror-market enthusiasm from conventions and specialty sites.  Opens Jan. 19, 2018 in a yet-undetermined (but significant) number of theatres!

f).   WHERE'S THE DRAGON - With the dissolution of the merger between HHSE and Crimson Forest, the company is finally cleared to revert back to the terms of the Dec. 2016 distribution agreement for this title.  Accordingly, on February 3, 2018, this enchanting Animated Feature will be released to theatres in key markets, in advance of a May, 2018 Home Video and V.O.D. launch.

Academy Award-Winner KIM BASINGER leads the voice cast for the upcoming HHSE 

family-animated feature, "WHERE'S THE DRAGON?"

Temporary Poster Art 

Adaptation Director STAR NOOR and principal voice actors for WHERE'S THE DRAGON? gather for the group voicing of the closing credits theme song.

g).   GETTING GRACE - Hot on the heels of a major NYC Market festival SWEEP of all major awards, HHSE will be releasing this Faith-Based Comedy-Drama nationwide on February 10, 2018 - with an outreach campaign that includes mega-churches and a key-market BUS TOUR with star and director DANIEL ROEBUCK ("Matlock", "The Fugitive") to drive local market enthusiasm.

3).  REGARDING HOME VIDEO RELEASES - we are pleased to report that substantial video orders have already been received by WALMART and BEST BUY for both BATTLECREEK and BLOODFEAST for FEBRUARY..  Placement of videos for these titles into REDBOX, TARGET and NETFLIX will be determined soon - driven in part by their critical and commercial reception during the upcoming theatrical releases.  NETFLIX STREAMING is no longer assured as a result of limited theatrical release support... but HHSE is still batting 100% for SVOD placement of our theatrical titles.

Other upcoming home video releases include:  The Redbull motor sports actioner RIDE  UNITED, the thrillers MUSE and INSOMNIUM, the historic-drama THE LENNON PROJECT, the faith-based-Christian-appeal films SACRED HEARTS and TRINITY, and the long-awaited home video launch of BONOBOS: BACK TO THE WILD and SLEEPER CELL: THE ALGERIAN through a major and very exciting new distribution pact with SONY PICTURES HOME ENTERTAINMENT for selected releases (Medallion titles will continue to be represented by CINEDIGM;  SONY as an additional wholesale distribution partner for selected Hannover House distributed titles provides the company with the opportunity to represent films that would otherwise not be available). 

4).  REGARDING BOOK PUBLISHING ACTIVITIES - we are pleased to announce the January 23 re-release of "QUIETUS" by Vivian Schilling - and the support of BARNES & NOBLE, BOOKS-A-MILLION, HUDSON GROUP and a U.K. Wholesale Consortium for this release.  We are also on standby for Thursday's release of JFK Assassination Documents - as there is a rumor that these disclosures may SUPPORT the thesis presented in the Hannover House release of "BLOOD, MONEY & POWER: HOW L.B.J. KILLED J.F.K."

5).    Update on Feature Film Productions (titles, status, dates and details);  HHSE has partnered with U.K.'s Silverlining Productions on the Family-Appeal / Creature-Feature "SHIMMER" (about a friendly Welsh Dragon). Commencement of Principal Photography was delayed by a few months to allow more time for the manufacture and tweakng of the Animatronic DRAGON character. However, filming is now on schedule for Nov. 6 in central Snowdonia, Wales.

"MOTHER GOOSE" production finance is cast-dependent, so coordinating the schedules of Shirley MacLaine and Samuel L. Jackson with other production issues has caused delays. By April, if we have not resolved scheduling issues, HHSE will seek an alternative, comparable-stature star for the Valkerna role. A major restaurant promotion (in support of a wide theatrical release) has been structured - and financing is expected through a U.K.-China-Arkansas multiparty presale structure.

"THE RIOT ACT" is an epic western, based on the true story of a romance, a murder, revenge and a haunting that occurred at the Van Buren Opera House in Arkansas in 1903.  Actress LAUREN SWEETSER ("Winter's Bone") leads an impressive cast that will be announced separately in a formal new production release.  Full pre-production is underway for this feature, which begins filming next Saturday (Oct. 28) in and around Fort Smith and Van Buren, Arkansas.  OTHER CAST WILL BE ANNOUNCED THIS WEEK!

"LAST CHANCE FOR HONOR" (formerly "Shuck & Jive") - A financing commitment has been received from a private investment group that will enable this film to shoot in February.  Designated cast includes Lawrence Fishburne, Randy Quaid and Kim Basinger, the participation of each will be pending scheduling coordination issues.

6).    Update on Distribution Partnerships (studio ventures, domestic / international); As mentioned previously, SONY PICTURES HOME ENTERTAINMENT and RANDOM MEDIA / THE ORCHARD are newly added distribution partners for selected titles from Hannover House program suppliers.  These respected and solid partners will help maximize sales of our titles and generate a greater return for the company and our program suppliers.  The SONY relationship includes the opportunity to place Hannover House represented titles into their network of direct distribution divisions in all major territories worldwide.  Medallion Releasing titles will continue to be handled both on a "direct" basis to key accounts in the USA and Canada - as well as through the wholesale participation of Cinedigm Entertainment... including the upcoming (Feb) new release DVD and BluRay copies of BATTLECREEK and BLOODFEAST.

7).  VODWIZ - A separate and detailed update on VODWIZ is planned for next weekend.

GO HHSE!