Good afternoon HHSE Friends & Followers - As shareholders in HHSE know, the purpose of filing the Form 10-12(g) Registration is to elevate the company to fully-reporting so that we can promptly elevate our OTC Status, file a S1 Registration offering, and raise the significant funding needed for a commercial launch of MyFlix (among other corporate endeavors that will benefit from the S1 raising).
So the whole point of the Form 10 Registration has always been to set a receptive stage for a stock offering and raising.
Accordingly, it's not surprising that the company's advisors have strongly recommended (today) to delay the filing of the Form 10-12(g) registration - in the wake of THREE powerful (and not favorable) market indicators. In the past week, the market receptivity to an OTC Markets S1 offering has been impacted by:
1). MARKETPLACE UNCERTAINTY - the Dow Jones declines over the past week are indicative of a general uncertainty within the marketplace.
2). MASSIVE INCREASES IN CORONAVIRUS CASES, HOSPITALIZATIONS and DEATHS - There is concern that the second wave of Covid-19 is now in high-gear and could have a much deeper economic impact than the initial and brief shut-downs from back in March.
3). UNCERTAINTY ABOUT NOV. 3 ELECTIONS AND LITIGATION - There is concern that the results of the election next Tuesday could be contested - adding uncertainty to the markets - and there are additional rumors of impending lawlessness from overly enthusiastic political supporters on both sides.
The HHSE Form 10-12(g) contains a lot of new and not-yet public information, including assumptions that are based on the timely filing of the S1 Registration & Offering. Accordingly, we cannot file the Form 10 unless we are confident that filing the S1 Registration within 5-days is a wise move. As of today - and due to extreme uncertainty in market conditions - we cannot confidently proceed as if this is a great time to file our registration and offering. It's frustrating, to be "all dressed-up and ready to go to the ball..." only to be told that the event venue is on fire at this present moment.
Accordingly, let's all hope for a peaceful resolution to the elections, a thoughtful strategy to attack COVID, and a favorable marketplace response to these developments. The addressing and resolution of these issues are believed to be key factors to re-establishing a greater stability within the markets.
We still have several more weeks before the Sept. 30 financial review (addendum to year-end audits) risks becoming "stale" under S.E.C. timelines. We do not intend to wait longer than a small allotment of this remaining time for the market conditions to improve.
We realize that some HHSE longs have grown impatient. So we ask them, do YOU think this is a good time for us to file? We believe an objective and reasonable analysis of current market conditions will result in the same recommendation as the HHSE advisors. We apologize for those that wanted the filing to occur in October "no matter what." But at what cost do we proceed when conditions are far from ideal? We want to be in a position in which the first $1.5-mm of the S1 sells out in less than 10-days... and market stability is a requirement for this to happen.
MONDAY - Nov. 2 - UPDATE - Greetings HHSE Shareholders: there has been some distress regarding the above blog, in that some are wondering if we are waiting for COVID to be cured, or the Dow Jones to recover (again) before filing the Form 10 and S1. Apologies for creating a lack of clarity.
What we are waiting for is the resolution of the Presidential election and the expected (rumored or predicted?) uncertainty and conflicts to be derived therefrom. Over the past 15-months, HHSE has been communicating with prospective S1 supporters, including companies with existing activities in the digital streaming arenas, who have multiple incentives to support the MyFlix venture. The consensus last week was that the general uncertainty in the marketplace - fueled by at least THREE major factors - would temper the enthusiasm of general market support for the S1 offering. While we cannot wait for a resolution of all issues - we DO believe that a peaceful resolution to the U.S. elections will help calm concerns that are presently impacting the timing of HHSE filings. We are not anticipating post-election issues that are not resolved quickly... and that this resolution will restore market confidence.
Stay tuned....
