Sunday, December 26, 2021

Countdown to Form 10 Registration - The Emergence of HHSE / MyFlix as a Major Media Company!

Greetings – From the majestic ski-slopes of Interlaken, Switzerland! 

Just kidding – the HHSE Team has not taken any time off for the Christmas and New Year’s Holidays as time is of the essence for our corporate filings and MyFlix activities.  Maybe next year? 

Meanwhile – as we turn the corner on 2021 and close-the-books on the end of the prior HHSE struggles – we find ourselves in a calm state of confidence for our imminent emergence. The paradigm shift of transforming HHSE from a struggling, nearly-drowned DVD distribution company into a multi-studio streaming giant is looking to become one of the big stories and stock plays for 2022. What sort of market-cap is realistically obtainable for HHSE?

In the ten years since NETFLIX transitioned away from DVD’s delivered via US Mail into a Digital Streaming Company, their share price increased from $25 up to today’s price of $615 (a growth of 2,460%) and a current market cap of $252-Billion.  

If HHSE were to have a comparable PPS growth - based on our current share pricing - the company would be trading at $.35 / share with a market cap of $350-mm. What if MyFlix and our high-end feature productions enable HHSE to  grow our revenues to $500-mm annually?  $1-Bn?  More?  Look at the 12-day grosses for “Spider-Man: No Way Home” at over $1-Bn already.  Shareholders have said that HHSE is “one hit movie away” from  being another LIONSGATE, and with funding deals already structured for films like “BELLE STARR” and “MELTDOWN” – it’s no longer a “some day” aspiration… it’s a “working on the productions right now” reality. 

Meanwhile – we are cognizant (and reminded many times each day from shareholders) that there is widespread impatience regarding the filing of the company’s Form 10 Registration.  The original intention of this registration was to improve the company’s credibility and stature so that a major raising could occur via a S-1 offering. The need for the S-1 has dramatically diminished with respect to a more beneficial credit line arrangement for the launch of MyFlix. But the benefits to shareholders for the HHSE F10 registration is the expectation of greater visibility and market support for the stock shares. 

Both the company and HHSE shareholders benefit from the Form 10 Registration. It boggles-the-mind to try to think of good reasons why a public company C.E.O. with a fully registered and reporting company would ever file a Form 15 withdrawal of registration?  Laziness? Incompetence? Disregard for shareholders? But let’s not digress…

HHSE is closing out Q4 right now, and will deliver the audit package for this final quarter on Saturday; we are told to expect to have the details of this final quarter audited and back to us by Jan. 10 for XBRL formatting and submission to S.E.C. Edgar (incorporated within our prior financials and F10 write-up). 

In these final days and weeks before filing, we expect to see enhanced “chat-board basher” pressures as they frantically struggle to fling mud in a desperate effort to cover their short-sell positions. These HHSE naysayers only have a few trading days left before the buying demand from new shareholders is expected to overwhelm their stock-boxing strategies. With a bit of luck, it’s quite possible that a short-squeeze could deliver the karmic ending that these bashers deserve.  

Over the coming days, there will be several seemingly unexciting filings and public disclosures made by HHSE, but all of which are essential items for the F-10 and the MyFlix launch. The BIG news is the F-10 and everything else that happens over the next few days will be in support of that key endeavor. 

If it were easy to do… we would have done it last year. But this has been a huge project (to address all of the company's prior, material issues in order to proceed in a new direction) and we are immensely grateful for the SUPPORT and PATIENCE of our longs and friends!

Stay Tuned!  AND Merry Christmas / Happy Holidays and a WONDERFUL NEW YEAR for all our HHSE Shareholders, Friends & Family!