Greetings HHSE Friends - after weeks of waiting, the OTC Markets finally approved the updated / newly-formatted filings from Hannover House. Our "Current Reporting Status" has finally been restored.
Several significant news items have developed or finalized over the past few weeks. As stated previously, our goal in releasing these news items was to beneficially impact and motivate shareholders. We were concerned that great news - if timed with a "Yield" sign - would diminish shareholder enthusiasm. Accordingly, getting the OTC Markets to confirm our status was an obstacle that was finally resolved.
There is, however, a new obstacle that we feel could temporarily impede shareholder enthusiasm for HHSE news. The "Lewin NY Judgment" heated up after the resignation and bankruptcy of former HHSE President D. Frederick Shefte. Existing shareholders will recall that Bruce R. Lewin - an investor in the movie "Dancin' It's On" - filed a lawsuit in New York against Hannover House and our two principal officers at the time, even though there is no agreement (verbal, written or otherwise) with Mr. Lewin for HHSE or the officers to have any obligations to him. In fact, the only contract that exists for "Dancin' It's On" is with the production company and director (David Winters), and the company has been performing its obligations under that agreement. In any event, Mr. Lewin's attorneys in New York were able to force a default judgment, which they are NOW (finally, after several years), seeking to enforce in the State of Arkansas. Counsel for Hannover House will respond by the end of the week with the initial filings available under Arkansas law, to stay any such foreign enforcement actions and to open and adjudicate the facts of the matter. Our counsel believes that we will prevail with both goals ("freeze" of enforcement actions and "victory" in the actual matter of the\non-existent agreement with Lewin).
However, this foreign judgment has an absurdly high dollar amount listed - almost $2-million dollars. So, we are concerned that new or limited information shareholders might see this nuisance lawsuit as something real, existential or scary... and thus the impact of positive HHSE news from the real world could be diminished. Accordingly, we will not be releasing significant news over the next few days, until our court filings in the Lewin matter have initiated (later this week). That way, the positive news of our progress and deals will not be diluted by misinformation about a crazy, foreign lawsuit.
Hold tight! The soup is brewing-up wonderfully!
