Greetings HHSE Shareholders & Friends - Quick summaries on items and issues that Shareholders have been asking about:
OTC MARKETS LISTING - It's been TWO (2) weeks since HHSE paid the renewal fee for our OTC Markets access restoral... and 10-days since we provided additional funds and documents as were requested at that time. In the past, whenever the OTC Pinks subscription expired, all we had to do was wire the funds and it would be resolved the next day. Now, however, there are new procedures regarding reinstatement of listed equities... including a thorough review of the HHSE shareholder's lists (including both Objecting Beneficial Owners - OBOs - and Non-Objecting Beneficial Owners - NOBOs), which the OTC Markets told us "normally takes three weeks" under this new procedure. That said, the primary OTC Markets representative that has been helping HHSE over the past few years said that it was LIKELY that we will be reactivated by tomorrow (Friday, Oct. 16), based on our 10+ years of prior membership and their effort to push us through as a priority issuer. We will update this BLOG as soon as we are reactivated... which could be tomorrow. SUNDAY UPDATE - HHSE was approved by the OTC Markets - after the review of the Shareholder's list - on Friday evening, and our active status has been reinstated. However, our ability to upload the Q2 and Q3 financials requires a manual entry tomorrow - so that will now happen and enable us to restore "current" listing for the company.
TUESDAY NIGHT - UPDATE - HHSE was fully approved (again) as an issuer for OTC Markets, and our access to the site was reinstated Monday night. The company has prepared the Q2 financials and the Q3 financials (along with all required disclosures). There are two issues of compliance that HHSE is addressing in the morning with the OTC Markets (formatting and breadth of disclosure under new rules). We anticipate these being resolved tomorrow and the Q2's posted before end of day / Q3's on Thursday. Moral of the story: due to the new compliance rules for OTC Markets, it's definitely best to NOT EVER allow an issuer's subscription to lapse... it will literally takes WEEKS to get reinstated (!!).
Q2 / Q3 FILING & AUDITS - Once the OTC Markets access is restored, we will file the Q2 and Q3 filings in order to be restored to "current" status. We have also sent the auditors the Q3 reports for inclusion in the Form 10 filing, to preserve the recency of the financials.
MYFLIX INITIAL LAUNCH - We did not hit our target response goals with the initial web teaser ads... which our marketing team consensus blames on "poor graphics" and "too much text." We are reworking these layouts and will try again. That said, the point of these quiet tests is to tweak the promo ads BEFORE we launch the site... so that the day we turn on the MyFlix site and APP, that we have a major consumer blast campaign ready to activate (and one that we have determined "works").
Some Shareholders have also asked for a pre-Form 10 update on a few LEGAL issues for Hannover House. AT THE REQUEST OF CORPORATE COUNSEL (10-21-2020)- WE HAVE BEEN ADVISED TO ONLY POST ON THE "BLOG" ACTUAL COURT FILINGS - AND NOT COMMENTARY OR STRATEGY.
HHSE and MYFLIX have a winning business plan that completely AVOIDS the LUNACY of dealing with micro-budgeted Indie Producers and the acquisition of third-party titles for distribution. HHSE has developed a financing structure for the production of HIGH-END feature films (with significant budgets and legitimate stars), and on the opposite end of the spectrum, MYFLIX is riding the Tsunami Wave of consumers gravitating away from DVD and BluRay in favor of streaming directly to their homes. Two solid business models... combined for strength and diversity as HHSE matures into the ever evolving home entertainment market. STAY TUNED!