Resolution of Legal Matters Clears Path for HHSE F10 Registration

Greetings HHSE Friends & Followers - significant steps have occurred over the past four days to clear the path for the Form 10 Registration and S1 Offering for HHSE.

The Arkansas judge in the Lewin foreign default matter decided against opening the case for adjudication in Arkansas. While the Arkansas Code of Civil Procedures Rule 55 ss 16-601 allows for foreign defaults to be contested (with specific emphasis on defaults earned through technicalities or fraud against the original court - as opposed to the merits of a claim), the amount of time that had passed since the New York judgment was filed in Arkansas (despite no collection efforts against HHSE), swayed the judge to defer the matter to the original jurisdiction (NY).  While HHSE has an active appeal in process in New York, our counsel there is targeting December as the hearing date, which would keep this Lewin matter unresolved until that time. Rather than delay our ability to file the Form 10 (without the S.E.C. litigation concerns), we have decided NOT to wait on the appeal process, but to instead move to settlement with Lewin. Accordingly, our New York counsel is working diligently with the lead NY Counsel for Lewin to effectuate a settlement that we expect to have completed and announced in the next few days.

This leaves only two problematic cases to resolve, re-open or dismiss:  the bizarre UPTONE judgment (which occurred AFTER a fully performed settlement agreement was in place) and the DAISY WINTERS judgment - which ALSO occurred after HHSE fully satisfied the licensor's terms for a non-litigious dissolution.  Los Angeles based counsel for HHSE on these two cases feels that the motions to set-aside the UPTONE matter will be filed today or tomorrow... and that the DAISY WINTERS motions will be filed next week.  

The crucial goal for HHSE is to clear-the-path for the registration and offering, as the company has received subscription pledges for a substantial portion of the offering.  The offering proceeds will primarily be used for the consumer support campaign of the MYFLIX venture... but up to 30% will be accessible for prior payables or obligations. So, the offering is a solution for fueling the new business model, as well as for cleaning up any final obligations from the prior DVD based business. 

There will be two exciting news items this week (both via wire service announcements), and some additional "twitter" postings of relevance.  We believe that this is a great time for shareholders to look at the HHSE stock due to the temporary PPS dip - which resulted last week from uncertainty about the Lewin case.  Many shareholders, traders and brokers have shared their predictions with HHSE management that the resolution of these prior judgments -  and the forward progress with HHSE corporate filings, projects and MyFlix - could and should fuel great shareholder enthusiasm and HHSE stock movement. We are about to find out if these stock prognosticators are right...

On a side note - Congratulations to the Oklahoma State University Medical School on the completion and opening of the World's Top-Acclaimed "Teaching Hospital" facility!  This is a very impressive facility - and situated in the heart of the Cherokee Nation.

It's a TWITTER world now - so please "follow" @EricHHSE for news and insights!

Dear Google Blogs - It's been a great 10+ year run.  Thanks for hosting our news and providing a forum for shareholder information.

But we're living in a TWITTER world now, and it's time for us to change the method and frequency of our communications to HHSE Shareholders. Don't worry... we will still use the Google Blog site for longer news, graphics and updates. In this fast-paced world of media and stocks, it's time for HHSE to join the Twitter-Sphere for faster, easier and more frequent shareholder outreach.

We encourage all of our HHSE friends & followers to add CEO Eric Parkinson to their Twitter follows at our just launched Twitter page:

@EricHHSE

THANKS!

Huge News on Monday - Hannover House Pacts for Reality TV Series

 Dear HHSE Friends & Followers - Watch for news to cross the wire services Monday morning concerning an exciting new Reality Television Series - based on the Billion-Dollar Marijuana Industry in Oklahoma!

Hannover House - News for Week of August 9 - 13

 Greetings HHSE Friends & Followers - Listed below are some updates that impact the current filings status for the Company as well as items which are of interest to our shareholders.

1).  LEWIN FOREIGN DEFAULT APPEAL - Last Monday, HHSE counsel in New York filed the appeal to overturn the fraudulent default awarded to Bruce R. Lewin in 2018 (during the time that HHSE President Fred Shefte was hospitalized and unavailable to respond to court deadlines).  The New York appellate court filings are not on the standard e-file court system, so it took a week before last Monday's manual (paper) filing was finally posted to the docet.  The primary pages of the appeal are included in this blog today below (we have withheld the voluminous exhibits due to size). As stated previously, Hannover House had no contractual obligation or relationship with Bruce Lewin (nor did the two company officers listed in the default), and the case would have likely been declared in Hannover's favor had responses back in 2018 been made in a timely manner. Now, the company is appealing the default judgment in pursuit to overturn the default and allow the dispute to be adjudicated on the basis of facts and documents (and not on the absence of a response). The current focus is to overturn the judgment in New York, with the reserve of contesting the default in Arkansas. Updates will be provided as this appeal progresses.

2).  UPTONE and DAISY WINTERS DEFAULTS - The company has hired L.A. counsel to file motions to remove these two defaults, which were filed by Southern California attorney MARC LAZO. The motions in UPTONE will be filed first (possibly this week). The delay in filing is a procedural rule that asks that opposing counsel first attempt to mediate a resolution.

3).  JSJ TEXAS JUDGMENT - Hannover House finally obtained from Standard Registrar and Transfer Co., Inc. the detailed ledger of all stock shares issued to JSJ Investments including the explanation by Standard Registrar of the specification and rationale for each stock issuance tranche. This detail and declaration was the missing item required for Dallas attorney James Carroll to file the declaration and Motion for Satisfaction documents in Texas. This filing will also include a motion for sanctions against JSJ for filing a motion for default for a note that was demonstrably fully retired prior to the default filing.  This action will also support the rescission and expungement of the Arkansas Securities Letter of Oct. 2019, which incorrectly implied that JSJ was an Arkansas based investor and therefore eligible to register their dispute with the Arkansas State Securities Department. 

4).  LEGAL RESOURCES - The company has approved the acceptance of an unsecured loan from a non-affiliated private investor - proceeds of which are to assist with legal fees relating to implementing a dramatic and immediate acceleration of activities to oppose these old default judgments. As required under current OTC Disclosure Rules, the source and the amount of these legal fees will be included within the company's Q3 filings. The removal of the foreign default judgments against Hannover House will take away the key "fear factor" that stock short sellers have been using to fuel concerns - and to enable them to pursue imbalanced press and social media coverage on the company. Legitimate investors and respected media outlets are able to see past these last, few remaining puffs of smoke - to see the bright future for HHSE and MyFlix. 

5).  NEW BOARD MEMBERS - Two additional outside executive have accepted Parkinson's nomination to join the Hannover House Board of Directors, bringing the final count to five (5) directors. Due to the stature of these Director nominees, both have required that the company's obtain Director's and Officer's Liability Insurance - which will be active upon the publication of the company's Form 10 registration.

6).  Q2 FILINGS - Hannover House will be withholding the filings of the Q2 report until Thursday or Friday of this week as we await review comments that are expected to impact certain balance sheet items and disclosures. The company's liabilities have been reduced by almost $3-million in the past few months, which reductions require third-party verifications before inclusion within the balance sheet.

STAY TUNED!