As we move into "delivery" mode for the WILDFIRE movie to our major studio distribution partner, it's exciting to see how well the final movie turned out! As many shareholders know, the film was forced into a shut-down mode for almost two years due to the COVID pandemic and talent scheduling issues... and then the film had to be re-shot in 2021 and 2022 to accommodate "changing looks" for the teenaged and pre-teen performers over the two-year delay! Quite an ordeal. But the final product is what matters - and there's no doubt that we earned our "major studio" distribution status with this production! The distribution advances are significant - and these funds will pay off HHSE debts and settlements. But, we would be surprised if the film does not generate significant royalty "overages." It's simply that good!
"WILDFIRE" is one of three, simultaneous major ventures for HHSE... the other two being our imminent Form 10 registration and our MyFlix site launch... the "holy trinity" of major, corporate achievements. And it's all in motion right now, when so many of us could appreciate a big boost going into the new year.
One of the Major Studio delivery issues is to provide approved images from the film for potential use in poster art, packaging and ads. Below are 100+ images that are part of our publicity images delivery package, provided herein for shareholder review. Lots in motion, very exciting times...
Happy Holidays / Hanukkah / Merry Christmas & New Year from your friends at HANNOVER HOUSE!
Greetings HHSE Friends - What a simple pleasure to be returned to the world of the living - after seven days of COVID hell that hit HHSE C.E.O. Eric Parkinson. Despite having two vaccines and two boosters, the newest variant of this virus hit him like a freight train on Thanksgiving, requiring hospitalization, supplemental oxygen and lots of rest. The fever broke on Tuesday, and although he is still testing "positive" - Parkinson is back at work again. The new reality is that we will all have to get used to living with COVID as new variants emerge. So, please be safe out there!
As requested by some longs, listed below is a short summary of the current status of key issues of interest:
1). FORM 10 - Write-ups have been updated to reflect the current status of settlements and ventures. There are some legal, tax and audit costs still being juggled, but these do not pose a threat to the timely release of this registration.
2). WILDFIRE - Picture editing continues on a parallel path with the music edit (from the original soundtrack by Michael Martin Murphey), and sound editing. The film looks fantastic and we believe that this truly sets the bar for HHSE to facilitate future productions. Despite internet trolls inventing release dates (and posting them to IMDB), there is not a formal release date yet publicly announced.
3). LAST DAYS OF BELLE STARR - The film's formal submission for competition at Cannes was made yesterday. The acceptance will be conditioned upon delivery of a rough-cut assembly to the festival team by March 11, 2023. If accepted, the film is expected to premiere at Cannes (fully completed / fully mixed) on May 23, 2023... as one of three "pro-Indigenous-themed" features.
4). PRODUCTION FINANCING VENTURE - HHSE is finalizing a venture with an investment group for $5-million as a "production fund" for HHSE-facilitated productions, to bridge those portions of major features otherwise not covered by Incentives or Presales. This off-balance-sheet fund will be a powerful tool for HHSE to help move high-profile features into production - which will feed the MyFlix service as locomotives (and in some cases, "exclusives"). There is no stock-conversion option or stock dilution impact to the manner in which this off-balance-sheet financing is being structured.
5). MYFLIX - Titles continue to be added to the revamped (unpublished) website; promo ads and videos will be ready by mid-December at which time the company will determine the marketing launch for the site. The timing of the MyFlix launch is likely to support the momentum from the Form 10 filing - as opposed to distract - so, the company is coordinating both of these major items to be in synch.
6). OFFICER SHARES - During the 90-day period from Feb. 1, 2023 to April 30, 2023, HHSE C.E.O. Eric Parkinson will have an active Form 4 blind sale of stock shares conducted under S.E.C. Rule 10b5-1, and administered solely and exclusively by a registered broker. This registered sale of 7.5-million officer shares will have a minimum sale price of $.035 / share and a maximum daily volume of 10% of the total stock transactions per day. This advanced notification to shareholders is intended to eliminate any false narratives that investors were not provided sufficient, prior notification, or that the C.E.O. is divesting. Parkinson has not sold any HHSE officer shares since November 2013 - approximately ten years. If for any reason the share price does not meet the minimum sale floor of $.035 during this offering window of time, then the broker will not be empowered to sell any of the shares.
7). STOCK PROMOTION / INVESTOR RELATIONS - As requested by key shareholders and advisors, over the past two years, HHSE has kept a low profile in terms of general publicity outreach. The consensus was that the promotion of activities would fall on deaf-ears until the registration is filed, and/or the launch of MyFlix. Accordingly, the release of news and publicity items supports the company's overall credibility boost from the registration, and each news item can achieve a positive impact. It is the company's goal to create tremendous publicity chatter, awareness and interest in the next few weeks - in part due to the large number of traders with extra time over the holidays - but also in general support of the completion of these key ventures.
Greetings HHSE Friends & Followers - Management received quite a few emails over the weekend from shareholders who were concerned about a "big seller" of HHSE stock on Friday (over 8.5-mm shares), and whether this represented something more than bad-timing or tax loss planning for the seller?
The company will not be able to verify the seller for several weeks (requires running a shareholders list report, which usually involves Broadridge review). But we were informed that this was indeed a former "long" with tax issues for 2022. "The absurdly low price at present for HHSE assisted a tax situation" which does not make great sense in terms of timing (except that there would be no tax loss if the sale were made next month / post Form 10). Most investors would rather sell post Form-10 and just pay the capital gains tax.
Regardless, we may be in the season of some tax loss sales... which may be a lucrative early holiday present for those in a position to buy at the current, absurdly low price.
Management has also been asked about "Investor Relations Outreach" - which some feel will generate fresh attention to the value of HHSE. We agree... but we also feel that the timing of such activities is best when timed with our Form 10 filing (and other material news, such as: Delivery of WILDFIRE, Major Cast filming in BELLE STARR and the Launch of MYFLIX). Investor Relations Outreach PRIOR to any of these key achievements would have limited impact to supporting the company's credibility.
The change-over from Daylight Savings Time reminds one of the popular adage that "it's often darkest before the dawn." We're in the final days for the completion of each of these corporate endeavors - and if HHSE were allowed to buy-back our stock off the open market, we would be doing so. As the Price Per Share may still see some wild fluctuations pre-Thanksgiving, all we can advise is that when the price is down, the only losers are the sellers... not those who push for that extra few yards to cross the finish line...
More to follow...
HHSE is fielding licensing offers from International Buyers for "WILDFIRE" - including Germany, France, Italy, Spain, U.K., Poland (and surprisingly, RUSSIA, which market still has great demand for new programming). The ANNE HECHE music video tribute has worked well as a teaser-trailer to show scenes from the movie.
(Link to IMDB Music Video Trailer - WILDFIRE / ANNE HECHE)
Greetings HHSE Friends & Followers - there's truth to the adage: "The harder I work, the luckier I get," especially when it comes to feature film production. We are honored to have received an invitation to submit "The Last Days of Belle Starr" for competition in the Festival de Cannes (2023). The film's screenplay was submitted as a project "now in production," and was determined to be suitable for an indigenous theme of films participating in 2023 (including Martin Scorsese's "Killers of the Flower Moon.").
Our film tells the story of the weeks leading up to the "Oklahoma Land Rush," told - for the first time - from the perspective of the tribes and the Cherokee Nation residents of 1889. While the infamous Ron Howard "Far and Away" scene portrayed the Oklahoma Land Rush... it did not address that this historic event was created as a result of a total disregard and breach of the treaties which created the Indian Territory.
As part of the diligence in preserving the news value of this film, our cast and our production activities, we continue to operate under a closed set with a full and complete press and social media moratorium. Accordingly, the photos we are sharing today are of locations without actors, and film equipment... but nothing that will betray the moratorium that has been implemented to protect the message track of the film.
We realize that our refusal to over-share cast and production information has been annoying to some shareholders... and even more so to the "critics" (including one who was captured and clearly identified on security video last week, trying to break-into the film's production office in Tahlequah, OK!!). But suffice it to say that we are ecstatic with our cast, and with our production progress.
For clarity, "The Last Days of Belle Starr" has not yet been selected for competition into Cannes 2023. In order to go from "invitation" to "competition," we must submit a rough cut of the full feature by March 11, 2023. We see no issues in meeting this deadline. Regardless, it's hard to envision competing with - and then beating - the $267-million dollar Scorsese feature, which addresses issues in 1924 affecting the Osage tribe. But if the HHSE film is selected for competition, that is a tremendous honor, a huge publicity boost for the release, and a great credibility boost for our company.
Forward progress continues with the Company's other critical endeavors - including the Form 10 filing, the launch of MyFlix and the upcoming deadline for Q3 reporting to the OTC Markets. Stay tuned....
April 22, 1889 – Not as famous of a DATE as November 11, 1918
(Armistice Day) – but in the history of the colonization of the
continental United States, it was a profoundly impactful day.At High Noon, at strategic points along the
border to the INDIAN TERRITORY, cannons fired to announce the beginning
of the “land rush” for persons to make claims on 160-acre plots of land.
This action was an addendum to the Dawes Act of 1887, which in many respects
was built upon the previously passed Homestead Act of 1862.
But there was a big difference in 1889. The land being given
away had already been deeded to the “Five Civilized Tribes” in a series
of treaties and actions (such as the “Indian Removal Act” that created the
deadly and forced “Trail of Tears” march).
The land being “given” away by the United States in 1889 belonged
to the tribes – and they were not happy about this major treaty
violation.
Our current feature production, “The Last Days of Belle
Starr,” is all about this treaty violation and it’s impact to the tribes
and to the Cherokee Nation.In the weeks
before Congressional approval of the Dawes Act addendum, Belle Starr came out
of a self-imposed exile of three years (following the death of her Cherokee
husband, Sam Starr), to speak against this plan. As a white woman living on
Cherokee Land (and then living with Jim July Starr), Belle was the ideal
spokesperson to garner support from the residents of Fort Smith and other
border communities to oppose the take-away of tribal lands. But just one week
after her most persuasive, public speech,
she was shot dead in a murder that the authorities in Arkansas chose to not
investigate.Alas, despite her valiant efforts
and martyrdom for the tribes, the “land rush” proceeded… and it is
therefore an important element in our film.
The “Oklahoma Land Rush” was featured in the 1992 Ron
Howard film, “Far and Away” – starring Tom Cruise and Nicole Kidman. But
the worldview of that movie was to show what a GREAT idea it was to give land
to immigrants and would-be farmers. There is scant mention that the land was
being stolen back from the tribes – it was presented as just a big, happy, Hollywood
ending.
Not so happy for everyone. What about the 100,000+ tribal members that
lost their land and became homeless? What about the Communal Hunting Grounds
that provided habitat for the wildlife that sustained the tribes? What about
the concept of tribal sovereignty that was ignored and expelled as Senator
Dawes moved on to become the “Chairman of the Commission of the Five
Civilized Tribes?” April 22, 1889
was not a happy Hollywood ending for the tribes who lost over90-million acres of land and nearly all of
their sustenance hunting grounds.
Reality does not always deliver a happy ending, but reality
often makes for a more powerful and successful movie. That’s what we believe
and why “The Last Days of Belle Starr” has the potential of becoming an
important and commercially successful feature film.It’s also what has allowed
us to attract multiple “A” stars to the project – critically praised movie
stars with a cumulative worldwide box office of more than $10-Billion dollars.
So, here we are, right in the middle of production on this
exciting, major movie. For security reasons (and for “message track
control”) we are filming with a closed set and without promoting the involvement
of our principal stars until the filming is completed.But it’s been an exciting, exhausting and
exhilarating adventure… including our OWN recreation of the Oklahoma Land Rush
of 1889.
Granted, we do not have the $100-million budget that Ron
Howard had thirty-years ago for his Land Rush scenes. But we’re giving him
quite a challenge with our impressive coverage:six cameras plus a drone coverage of twelve horse drawn wagons, forty-two
horses with riders, and the official government stand with soldiers and
cannons.It’s amazing how “big” a scene
with that many horses appears on screen – enhanced to a degree with long-focal
length lenses that compress the space between the wagons and riders and create
a visual explosion of motion, dust and excitement. Big stuff… shots that will definitely
“make the trailer,” as they say.
Making a movie – ANY movie – requires tremendous work,
clarity of mind, dedication and commitment. It’s likely one of the hardest
creative endeavors of all… involving telling a story, engaging quality
performers to act it out, quality crew and gear to record the performances,
and all of the insane logistics of feeding cast, crew and hundreds of
background extras, having location generators and porta-potty service, fenced-in areas to house the horses (and water and feed for the horses), and the complex
logistics of flying and driving in dozens of people from different locations –
trying to get everyone in the same place at the same time to collectively make magic.
That’s why it’s so amusing when persons who have never
produced a film try to comment on those who are actual creators.Truly, if it were easy, everyone would produce
movies.Only people who have actually PRODUCED
or DIRECTED a major feature film understand the complexities… so the rest of
the wanna-bees (or “never will bees”) would be best advised to just
quietly sit back, watch and learn. The commentary in this paragraph is NOT directed at our legitimate HHSE shareholders... but is addressing the four or five chatroom naysayers who do nothing more than sling mud and fabricate consistently wrong prognostications and criticisms of HHSE and its management. HHSE will not apologize for succeeding and ruining a naked short-sell position. The bashers / short-sellers want nothing more than to scare longs into selling to them now, well below book value, so that THEY become the beneficiaries of the stock's meteoric rise.
Based on our star casting, there is a reasonable expectation
that “The Last Days of Belle Starr” will be licensed to nearly all of
the major territories and media, worldwide.
Accordingly, and based on the deal
structure of fees and profit participation for Hannover House, Inc. (HHSE), it’s
obtainable that the net income for the company could reach $10-mm…
which is approx. $.01 per share in earnings. Current Price-Earnings ratios for
entertainment companies suggests that this production alone could support a PPS
of over $.25 / share.
But “The Last Days of Belle Starr” is just one
element of three that has the likelihood of a combining for an immensely powerful
impact to HHSE this year. The others, as our shareholders know well, are
the basic registration filing (which will allow many traders and funds to
finally support the HHSE stock), and the launch of our own multi-studio
streaming service, MYFLIX.It’s the “Holy
Trinity” of major events that collectively could propel HHSE into a
legendary league.
So much more that we’d love to share now… but our discretion
is for the benefit of our shareholders.
A small army of Animal Wranglers are working on "The Last Days of Belle Starr" - to assure safety for the cast, crew and animals in the film. The production also has a major studio Stunt Team - as well as weapons experts and pyro-technicians (for "faked" bullet hits and blood-bag effects). For insurance and safety reasons, the weapons utilized in this film are all NON-FIRING REPLICAS, designed to be visually consistent with the pistols (Peace-Makers), Rifles and Shotguns of the era.
"FAR & AWAY" Oklahoma Land Rush sequence (1992) - courtesy of YouTube.
Greetings HHSE Friends, Followers, Shareholders & Team - Management has received several emails in the past week inquiring about the status (and "stars") for the current "Belle Starr" production. At one point in time, today (Monday, Sept. 26) had been listed as the "start" date for Principal Photography - so there were questions about that status as well as about the absence of "A" talent on current and prior announcements.
Firstly, today is not the start of principal photography. Today was to have been the first day in which scenes with our lead actress portraying the lead role were slated to commence. Due to scheduling issues that often occur with high-profile / high-demand performers, the availability for this performer commences Oct. 10. This does not impact our wrap date for the film in October - it just moves some of the "Belle Starr" performer scenes further into the film's production schedule.
Next, some shareholders have lamented that none of the principal performers (and big-name stars) currently have been added to the film's IMDB page. This is due to approval restrictions with big-name stars, which limit the use of their name and images without prior / coordinated publicity consent. Obviously, the right to use these star names in the marketing, advertising and artwork for the film will be obtained well prior to such needs. Meanwhile, we have avoided showing unauthorized images on our BLOG and on any cast / crew social media posts.
Thirdly, there seems to be some confusion about whether or not having management forge ahead on projects and activities (such as MyFlix and feature productions) is a "good use of time" in respect that the company's Form 10 registration is not yet published. This comment presupposes that HHSE management has not previously completed all tasks for the Form 10 - and that all required items are not already in the hands of the outside suppliers to complete. Rest assured: if there were anything still remaining for HHSE Management to complete for the registration, it would be our sole focus.
And lastly, some have asked about a tweak in the "Belle Starr" title on IMDB. Previously, the film had been listed as "The Legend of Belle Starr." However, the film is not a full retrospective on the colorful life of this woman, but is instead a focus literally on the last few weeks of her life. By tweaking the title to "The Last Days of Belle Starr," we not only focus on the subject that this movie covers, but we're also suggesting to the audience that a dramatic conflict is imminent. The tweaked title is more specific and more active.
On other fronts - we have agreed to move into a soft-launch of MyFlix, utilizing the titles already fully cleared / onboarded / ready-to-stream. There will be a few days in which the MyFlix.com site will be "down" (but replaced with a "Coming Soon" style home page) - as well as a revamp of the HannoverHouse.com site (which has not had a full revamp in over four years). It is our belief that the launch of MyFlix, combined with the registration filing, the major release of "WILDFIRE," the studio-level production of "BELLE STARR" and three other big news items, will drive awareness to HHSE and traffic to the HannoverHouse.com website to learn more. The could be a significant spike in curiosity, interest in the company and new shareholders. That's certainly our expectation.
More to follow.... meanwhile, to our Jewish friends, Shana Tova!
The National Parks Service granted "BELLE STARR" with access to shoot scenes inside the actual JUDGE PARKER COURTHOUSE in Fort Smith - which is the first time ever that a feature film has been allowed to film in this authentic setting (previously, only educational / documentary projects were granted a filming permit).
Seen in this behind-the-scenes still is screen veteran ROBERT RUSLER as Prosecutor W.H.H. Clayton, 2022 Tony Award Winner JASON VEASEY as Bass Reeves, and ERIC PARKINSON as Marshal Heck Thomas.
Greetings HHSE Friends & Followers - in respect of the boom-time at present for video-on-demand streaming services (and as we start to move into colder weather months in which more programming is consumed via V.O.D.), we have been encouraged to proceed with a "soft" launch of MyFlix - rather than wait for the majority of the service's available titles to be live for streaming.
We have previously been resistant to launching without mega-dollars for ad support... and without some of our key program suppliers (who prefer or require that the company be fully registered for credibility). But industry data is showing that huge revenue dollars are accessible WITHOUT major titles and WITHOUT major advertising support. A soft-launch will enable any operational kinks to be adjusted or procedures to be tweaked.
Greetings HHSE Friends & Followers - If you google "Warren Buffett investment strategy," you will most likely get the statement below or some variation to come up at the top of the search:
Warren Buffett's investing strategy is value investing. Value investing involves selecting stocks whose share price is trading below its intrinsic value or book value.
Mr. Buffett's Berkshire-Hathaway looks at the direction of a company and where they fit into the marketplace as well as their inherent value... as opposed to looking at the momentary / daily / weekly fluctuations in share price. This "long view" has taken the emotional-panic out of the equation and enabled Berkshire Hathaway to become one of the world's largest and most successful investment funds.
Over the past few weeks, there have been some emotional-panic sellers of HHSE, which we believe is supremely unfortunate for them.... but a windfall for those who snapped up these shares from weaker hands. As HHSE steps into the commercial phase of MyFlix - along with the stock registration - many stock and entertainment analysts have provided extraordinary predictions for the potential impact to the HHSE share price... ranging from a PPS of $.10 to as high as $1.00 per share. Will these stock and industry analysts prove correct? Time will tell.
But we do know this: Warren Buffett would never sell a stock poised for greatness (as we feel HHSE is) just because a few impatient shareholders poorly timed the sale of their holdings. As Buffett said on a recent CNBC interview: "I'm happy when the stock of a company I hold goes down in price, because then I can buy more!"
Just food for thought. HHSE management cannot provide stock buying or selling advice. But we can remind shareholders of what the company has already achieved in our pre-registration "corporate clean-up" and our exciting MyFlix model for the future.
Who knows? Maybe someday Berkshire Hathaway will take a look our way, too?
Greetings HHSE Friends & Followers - the Company has been intentionally quiet during the final Form 10 pre-release date - in order to avoid any disclosures that might impede our forward progress. However, we have received approval for some quick, overview updates on the registration activities - as well as on other activities that we did NOT plan to discuss, but which were picked-up by other media (so they broke the news).
Some shareholders have asked why our June 30, 2022 filings STILL had the prior Library Valuation listing and previous verbiage about re-doing the library? This was done in order to conform the quarterly and annual disclosures to the Form 10 audits. The revised filings of the company's year-end 12-31-2020 and 12-31-2021 disclosures on the OTC Markets will be published at the same time that the Form 10 is filed - to avoid the risk of getting a temporary "Yield Sign" on the company's stock. If we had changed the Library Valuation for 6-30-2022, we would have telegraphed information not yet formally opined upon (in the audit letter), which would have been a breach of protocol.
In any event, the filings and publishing procedures are complex in terms of the proper order and timing of items... but it's all in motion and imminent.
Progress on the onboarding and creation of the off-line MyFlix site continues at a furious pace. It's been comforting to watch the growth of a similar site, TUBI-TV, which (purportedly) has been generating more than $35-million per month with virtually NO advertising budget. This suggests that the prior calculation of millions needed for the support of the MyFlix launch may be significantly over-estimated in order for us to reach the MyFlix goal (which is only $40-million in the first 12-months - a target which is less than 1/10th of the TUBI current volume).
The recent and tragic death of our WILDFIRE star, ANNE HECHE was the inspiration for the creation and release of a dedicated Music Video - showcasing our new version of that classic song (recorded for the movie), and intercut with scenes from the film. At present, it's available ONLY on IMDB... but this will changelater this week as our press announcement of the music video will likely spark a lot of sites, cable outlets and other media to create their own links.
Lastly, due to our receipt of a special permit from the National Park Service in Washington, D.C., the HHSE facilitated production of "THE LEGEND OF BELLE STARR" got unprecedented access last week to film scenes INSIDE the actual Judge Parker Courthouse in Fort Smith, Arkansas. This was a tremendous blessing for the film in that the production values of utilizing authentic locations instead of movie stages that have to be expensively "set-dressed" saves the film over $500,000 per our prior expectations. Principal photography on THE LEGEND OF BELLE STARR starts Sept. 26 - with three major box office stars slated for the roles as Belle Starr, Senator Henry Dawes and Judge Isaac Parker. It was a great opportunity to get these other scenes shot out as second-unit - and now, already into editing. The finished film is expected to be a multimillion dollar asset for HHSE that will generate positive cash flow for decades.
Some PRODUCTION STILLS are below (key scenes have been excluded to due to quarantine on story themes). More to follow....
Director ERIC PARKINSON, with "Fur Traders" ALDEN ANDERSON and HARRY BOTTS framing in ROBERT RUSLER ("Weird Science") who portrays prosecutor W.H.H. Clayton in "The Legend of Belle Starr."
JASON VEASEY - lead star of the current TONY AWARD winning Broadway Musical, "A STRANGE LOOP" - took off four days from sold-out shows in New York to join our film in the esteemed role as Marshal BASS REEVES. Another Jason, JASON JAMES RICHTER(who first broke into stardom from his lead role in "Free Willy"), flew in from Los Angeles to portray Estus McEvoy, one of the businessmen scheming to steal land from the Oklahoma Land Rush setting of this film.
Prisoners to the jail...
Bad guys listening in to the Marshal's at the West End Hotel.
Two of the town Marshals discussing the spike in crime prior to the Oklahoma Land Rush.
Character of Mark Epperson is the antagonist, with a motley crew of henchmen.
State Orphanage is kept full from executions by hanging, ordered by Judge Parker.
The Natives & Marshals oppose the Land Rush, but everyone else clamors for "free land."
Schemes to foreclose on plat claims are launched by a group of shady businessmen
Filming scenes inside the authentic Judge Isaac Parker Courtroom
"The Legend of Belle Starr" is being produced by special-purpose Oklahoma corporation Snowy Morning, Inc., SAG Registration 005-26879. All images copyright (c) 2022 Hannover House, Inc., OTC: HHSE. Permission is hereby granted to legitimate websites, entertainment journalists, broadcasters and publications to utilize any of these images for the sole and expressed purpose of referring to the current feature film production.
Good Afternoon HHSE Friends & Followers - Over the past two years, the Securities and Exchange Commission has tightened the rules and enforcement procedures regarding unregistered issuers and the Rule 144 restrictions on stock share issuances.
According to HHSE Securities Counsel, Ms. Morgan Petitti, this has resulted in an extension of the "holding period" for restricted share issuances. Ms. Petitti writes:
"The current exemption applicable to HHSE is 4(a)(1) which carries a 2 year holding period."
While this rule change and interpretation was not known to HHSE until now, it does impact the holders of restricted stock shares - including those issued in satisfaction of legal settlement agreements. Shares issued for legal settlement are now subject to the 4(a)(1) holding period of two years. But this timeframe can be shortened down to six (6) months AFTER the filing of the company's Form 10 Registration Statement. This is surprising and unexpected development - which underscores the importance of our commitment to completing the registration and to become a fully-reporting company. But in the short term, this rules and interpretation change will block any sales of previously issued settlement shares - for at least six more months.
Hannover House does not control the Securities and Exchange Commission and their various rules changes. So, we cannot be held responsible for this regulatory change. However, the legal settlement share recipients will likely benefit from this eligibility change... as the date in which their shares move into free-trading status will likely be at a point in time when the HHSE stock is well north of $.05 per share (as opposed to it's currently challenged pricing level).
Meanwhile, HHSE has made deals to "buy back" 1.6-million restricted stock shares, issued years ago to HHSE vendor suppliers. These shares will be returned to Treasury, and will reduce the total amount of shares outstanding and in issue as a result.
Lots of activity and projects in motion... hold tight and stay tuned!
CHEVEL SHEPHERD and "WILDFIRE" (aka "Pancho") on the set of the upcoming HHSE major feature film, "WILDFIRE: THE LEGEND OF THE CHEROKEE GHOST HORSE."
Last month when HHSE selected July 28 as the filing date for
our Form 10 registration, this was based on Q2 review time needed for the auditors,
and the additional formatting and XBRL time needed for M2 Compliance prior to
submission to the S.E.C. Edgar Database.
We knew last month, that HHSE would separately
be required to make additional changes, updates and new filings in order for
all disclosures and accounting procedures to be consistent with the audit
report and Form 10. The most time-challenging remaining items on the Form 10 HHSE plate have been: revision of 2019, 2020 and 2021 Federal
1120-S tax returns to conform to a cash-only accounting basis, and a
restatement and re-filing of the 12-31-2020 and 12-31-2021 OTC Markets Annual
Reports to also reflect the cash-basis accounting and revisions to the Film
& Television Rights Library. Previous obstacles - all major events - were already completed (including the Library update, the settlement or resolution of material legal matters and significant balance sheet strengthening through negotiated debt reductions).
Theoretically, this could have all been done by today’s goal.
But without a support staff, and working within the physical limitations of a 24-hour day (and the occasional need for food and sleep), the target goal has proven itself
impractical.Accordingly, the Form 10
registration was not released today – but a lengthy delay is not this project's destiny. HHSE must make these updates and revised filings first before we can publish
the registration.There is also a logistics
issue to resolve in that restating the 2020 and 2021 Annual Reports will
require a new attorney opinion letter, and needs to be implemented in a manner
to minimize the risks of a temporary change in the OTC Markets status for the
company. But it's all doable (and everything requires some investment of time).
Some shareholders have reached out to HHSE CEO Eric
Parkinson for status updates on the Form 10 – which information cannot be given
out individually under disclosure rules, but which must be publicly
disseminated, such as via this blog.So,
apologies for the lack of response to these shareholders.
Bottom Line is that great effort has been made to complete the HHSE agenda items
– but July 28th proved to be an unobtainable publishing date. If all other HHSE
issues, projects, calls and operational obligations had been completely ignored
– there would still be the limitation of a 24-hour day and a seven-day week. So,
sincere apologies on behalf of the company and individually from Eric
Parkinson.It’s all getting done, and
literally could not be completed any faster under the reality of a linear-time.
Over the next few days – watch for OTC Markets filings (and
a SEC Form 8 Information Disclosure) – all of which are components of the registration
process. Then one morning, very soon, watch this blog for a link to the S.E.C. Edgar site and the HHSE Form 10.
We realize that there are some exhausted shareholders - and some that might decide to sell their HHSE shares now, at the worst possible time for their own self-interests. If this occurs, this could be a fantastic upside opportunity for those following the WARREN BUFFET strategy of buying for value and buying for where a company is headed... not for the momentary peaks and dips from emotionally-charged day trading. HHSE was founded in 1993 (29-years ago), and is a long-term serious play. There are occasional "day trade" opportunities such as buying into a stock pump promotion behind a company with no assets, zero revenues and $235-MILLION in debt (yes, some shareholders suggested that HHSE should operate more like a particular - unnamed - OTC issuer that purportedly is an "entertainment" company despite nothing more than mountains of debt and a stock promotion !!!). But that's the opposite of the HHSE operating business model. HHSE is not a stock pump... and with MyFlix and the HHSE slate of high-end original productions, HHSE is turning into the big, long-term score you can brag about to your kids and grandkids.
Greetings HHSE Friends & Followers - As mentioned in recent months, Hannover House is embarking on an exciting new chapter for the company - one that best reflects the current market conditions for the worldwide entertainment industry and the direction of new trends.
Rather than handle the DVD (and other format) distribution of third-party-owned features, Hannover House is instead focusing on a two tier business model with primary efforts on:
2). ORIGINAL PRODUCTIONS - the creation / production / ownership of feature films and television properties without the distraction and dilution of third-party owners.
As many HHSE longs know, the prior business model of handling distribution for third-party-owned, primarily low-budget, independent productions spiraled into nothingness as the consumer market for collecting physical DVD copies evaporated. During these declining years (2015 - 2018), Hannover House found itself as the target of five producer lawsuits, in which the program owners improperly blamed HHSE for the changing market conditions.
All five of these lawsuits could have - and should have - been dismissed immediately for lack of factual merit. However, Fred Shefte, in-house attorney and HHSE President (at that time) was struggling with dire health issues, and as a result, the company did not respond to these cases in a timely manner (and ended up with "default judgments"). Unfortunately, Shefte has since passed-away from his health challenges... however, the default judgments survived, and it was essential that HHSE deal with these prior to filing the S.E.C. Registration Statement.
How has HHSE dealt with these? In a snapshot, one could modestly proclaim "quite well" >>
* Default Judgment Debts - Originally $3.879-million dollars in total - were negotiated into settlements for a total of $627,500 in cash payments, a reduction of EIGHTY-THREE PERCENT.
* Cash Payments on Settlements (since Sept. 2021) have been $207,500, with monthly installments over the next 9-months from existing company cash flows sufficient to entirely wipe out all remaining balances.
* No New Lawsuits - Reflecting the company's refocus away from outside acquisitions, there have been no new lawsuits of any nature stemming from activities since the release of "Getting Grace" in March of 2018.
MEANWHILE - HHSE is in the final pre-filing stages for the Form 10-12(g) registration, the launch of the MyFlix streaming venture, and the completion of the feature film, "WILDFIRE: THE LEGEND OF THE CHEROKEE GHOST HORSE" (which was produced with financial and other assistance by Hannover House along with private investors and lenders for that specific project). The company is also in final pre-production for the Principal Photography of the epic $12-mm feature western, "THE LEGEND OF BELLE STARR" (although four days of seasonal-specific second-unit scenes have already been filmed).
The future is bright - the future is now. This is the beginning of an exciting new chapter for the 29-year-old Hannover House operations!
Speaking of "THE LEGEND OF BELLE STARR," HHSE C.E.O. (and Belle Starr feature director) ERIC PARKINSON was hosted by the City of Wichita (Kansas) Parks Service and Historic Cowtown facility last week - for location scouting of scenes for this feature. Cowtown consists of approx. 65 period-correct (and fully functional) buildings from the late 1880's on a forty-acre city-owned park site. Cowtown has over 250 registered "wardrobe-correct" re-enactors available to appear in Belle Starr as background-extras - and the fully furnished homes and buildings will save the company hundreds-of-thousands-of-dollars in art, props and set-dressing costs. All these savings will ADD to the bottom line for HHSE, to enhance the benefits already enjoyed from production overhead fees and eventual sales & licensing income.
Greetings HHSE Friends and Followers - we are pleased to announce the addition of WEBULL to the family of on-line retail brokerage services supporting the buying and selling of Hannover House (HHSE) shares. WEBULL is one of the emerging services to cater fairly and efficiently to the masses of traders in the market - the new generation of investors that have proven their power through Reddit and through “punch-the-powers-that-be” in the face with rallies behind GAMESTOP, AMC and other stocks.
Some of the dinosaur trading platforms - especially E-Trade - have purposely created obstacles for traders to buy stocks such as HHSE… as they stack the rules to favor their institutional clients and short sellers. But WEBULL believes in the democracy of trading access — and they are reaching a broad base and new generation of investors: the sort of people that recognize the huge upside of a streaming service such as MYFLIX, and the benefit of owning major feature productions and Television Series programs.
HHSE and WEBULL are a perfect fit to enable smaller fund traders to benefit from what media stock analysts have predicted will be a meteoritic rise for HHSE in the coming weeks and months. If you don’t already have a trading account with WEBULL, check it out! They are offering sign-up incentives in the form of free stocks!
www.WeBull.com
Go HHSE!
In other news, HHSE mourns the death this week of Elspeth Tavares (center) - editor and publisher of BUSINESS OF FILM. Elspeth was a friend and business colleague of HHSE C.E.O. ERIC PARKINSON, for over 30-years.
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