Greetings HHSE Friends - As requested, here are some additional updates on CANNES activities and other general activities for Hannover House, Inc. / MYFLIX and our affiliates.
1). INTERNATIONAL SALES - Direct licenses were made for FRANCE, ITALY and SPAIN on selected HHSE titles, most notably, "UNHOLY SONG: THE EXORCISM OF EVIL." A separate deal was consummated for all sales, licensing and distribution rights to WILDFIRE outside of North America (however, the licensor retains the right to control the timing of the announcement).
2). MULTI-MILLION DOLLAR PRODUCTION FINANCING VENTURES - Although we are still under N.D.A. restrictions on two of the titles, we can announce that major financing was structured for THREE (3) separate major features. Two of these are slated for production in Hungary and Germany (budgets are $6-mm and $12-mm), and one of these is slated for production in Malta and France. For the Hungarian-German co-productions, one of the films features a 2023 Academy Award nominated actress, and the other film features one of the highest ranked stars in the world (both in terms of IMDB Star Ranking as well as worldwide box office results). Again, N.D.A. restrictions are required due to the partners and stars involved. Any one of these movies are major "game changers" for HHSE in terms of production fees, distribution fees, profit participation and general stature / credibility for the company. To have three such projects in the same year is beyond significant for the future of HHSE.
3). MYFLIX PARTNER STUDIOS - lots of meetings at Cannes and support and enthusiasm continues high for MyFlix. However, all of the major suppliers agree with the strategy of launching MyFlix with the multi-faceted marketing strategy originally planned for the venture. There was no support, only concern, that buckling to pressure from shareholders to proceed with the venture without proper marketing and ad support would likely result is a failed launch. Timing wise, HHSE has several likely financing sources for MyFlix, all triggered by the current OTC: QB Uplist project.
4). WILDFIRE RELEASE & GENERAL UPDATES - Prior to the major studio streaming launch of this title, HHSE will be given a 60-day window for the exploitation of North American theatrical rights. As of this date, the V.O.D. premiere window date has not been finalized (although, we're being told that it will LIKELY be between Thanksgiving and Christmas this year - prime time for family programming). Accordingly, the most likely theatrical launch date will be MID-SEPTEMBER.
Meanwhile, we have not come to terms with Warner-Chappell Music on the use of our new "WILDFIRE" song master, except for the use of this version withing the movie itself. We will need a separate license for using this recording within a TRAILER, or as a component of a free-standing MUSIC VIDEO. Accordingly, we have pulled down both the trailer version (from last year) and the Anne Heche music video tribute, as these utilized the new master, but did not have the "publishing rights" for these additional uses. We were already making a new trailer for the film which does NOT use our new recording as featured in the movie. It is possible we may go back and license the rights to use our own version of the song for use within a film trailer... but it's also possible that our key distribution partners will agree that the new trailer works very well with the other music already owned outright. So, to be clear: the rights to the "WILDFIRE" song were previously licensed "for use in the movie" but not for other uses. I know it sounds crazy that we cannot use a song master that we own outright, but that's how "music publishing rights" work: the master of a recording and the "copyright elements of the song" are considered two separate assets, each subject to separate licenses. Definitely not a big deal, but we wanted to clarify.
5). OTCQB UPLIST - Yes, still awaiting final audit opinion, but are otherwise ready to submit. There will be no advanced warning at this point. We will publish the OTC:QB documents as soon as the final audit opinion is provided. Could be any day, any moment. As mentioned before, conforming all of our assets, balance sheet items, payables, receivables and contracts is hardest "the first time" - and then these are established assumption items for all subsequent financial reports.
6). REVISION OF Q1 2024 FILING - In December, 2023, Management filed with the Wyoming Secretary of State for an increase in the Authorized Shares of HHSE to a max A/S of 1,250,000,000, as opposed to the prior ceiling of 1,100,000,000. This application was not immediately processed by the Wyoming Secretary of State for unknown reasons, and as a result, the A/S was not formally recognized on the company's 12-31-2023 year-end report. However, it was accepted in January, and acknowledged by Standard Registrar in February of 2024. Accordingly, the 3-31-2024 Quarterly report has been updated and corrected to show this higher A/S which was, in fact, effective during that reporting period. The purpose of the higher A/S is to allow for a cushion of unissued treasury stock in order to meet some current financing structures, which include the option - but not the assurance - that shares might be issued in part for major production and MyFlix ventures. To date, no such "options" have been issued; however, counsel advised that the A/S needed to be adjusted to allow such deals to be pursued.
