New Era in Trading Ease with HHSE now a DWAC / DTC / FAST approved Equity!

Dear HHSE Friends & Followers - it's an "invisible" achievement unless you are the beneficiary of a certificate issued directly by Hannover House. But the approval for DWAC / Electronic clearing of our shares is a huge step towards our overall credibility with major traders and funds.

For the vast majority of buyers and sellers of HHSE on the "open public markets" (such as brokers platforms like ETrade, Scottrade, TD Ameritrade, etc...), your purchases and sales of HHSE shares have already been processed electronically.  But for direct-issued stock certificates (such as consideration from the company), until now, these have been "Paper Certificates" physically issued and released.

The existence of HHSE shares in paper form has actually created a greater risk of "Naked Shorts" for cover to short sellers... as the inability to immediately verify access to (or ownership of) HHSE shares electronically created a plausible cover for some of these manipulators.  Now, however, with shares instantly clearing electronically, it will become obvious if a short-seller does not control HHSE shares at the time of a fake sale.

In any event... Electronic Clearing is just ONE of the major benchmarks... and was confirmed last week by AMY MERRILL of our Transfer Agent, STANDARD REGISTRAR & TRANSFER CO., INC.  A copy of Amy's email is reprinted below.  She has invited shareholders to call for verification.

ONWARD!!!

UPDATED:  Apparently, a support staff worker at STANDARD REGISTRAR misinformed a caller about our status, as she simply did not handle the matter.  Her email to the shareholder correcting this error is below.  Please note that EVEN THOUGH our HHSE shares are now DWAC / DTC / FAST cleared, this does NOT change the tacking / aging period requirements of anyone receiving shares.  For instance, HHSE President's FRED SHEFTE's ex-wife (Diana) will be issued shares of HHSE in the next two months following certification of their divorce settlement. The date of the shares that Ms. Shefte receives will start the clock for a 12-month aging before they are eligible to sell. This is a Rule 144 legal requirement, regardless of what "the sky is falling" proven stock manipulators try to convince you.

Hannover House resubmits 3-31-2020 Financials to Conform to Specific OTC Markets Formatting

Dear HHSE Friends & Followers - HHSE Management (and some shareholders) were surprised to see that the OTC Markets had downgraded our disclosure status from CURRENT to YIELD.  This was surprising because we had not only include EVERY item that the OTC Disclosures requires, but that we had ALSO included quite a few of additional disclosures and reports that the Securities and Exchange Commission requires for 10Q and 10K filings. 

However, the OTC Markets is not the S.E.C., and they have the ability to require that filings be in a particular order and format.  So, in order to restore our CURRENT listing status with the OTC, the 3-31-2020 report has been chopped in half, and reformatted and re-ordered to fall into the compliance structure that is the preferred layout for OTC review.

That said, all of the additional disclosures will remain on the S.E.C. 10Q report for 3-31-2020, and for those preferring a condensed version, the OTC Markets listing will suffice.

ONWARD!

HHSE hires staff for MyFlix Launch - Sets August 25, 2020 as Initial Consumer Launch

Greetings HHSE Friends & Followers - As previously communicated, the current market conditions from the worldwide COVID-19 Pandemic have resulted in nearly a doubling of industry-wide revenues from Streaming Media (and Video-On-Demand sites). This dynamic market trend perfectly complements our strategy for the launch of the MyFlix one-stop digital superstore site.

MyFlix has hired four full-time staff members for a pre-build beginning Monday, June 1, 2020 - and an initial consumer launch on August 25, 2020. At this time, MyFlix is targeting to have "at least 2,500" titles available on the launch date (from a combined catalog of more than 15,000 titles from 43 supplier studios).  To enhance the credibility of the site, an assortment of approximately 90 titles from Major Studio Suppliers will be prominently promoted, along with genre-categorized offerings from all of the independent and television supplier partners.

Initial marketing will be targeting high-consumption film audiences, reachable through entertainment media specific websites and through targeted social media.  As revenues grow - supplemented from proceeds of the Hannover House S1 Registration - hundreds of additional titles will be added each month and consumer advertising and publicity outreach will grow proportionately.

The MyFlix staff and executives will be practicing "social distancing" at the offices, including the wearing of safety masks until such time that scientific and medical data supports a relaxation of such precautions. The August 25, 2020 launch date corresponds with the anticipated "second wave" of required lock-downs for the USA Market, resulting from the premature relaxation of social distancing practices that some states are now encouraging.  MyFlix believes that the many millions of consumers impacted by the ongoing COVID-19 pandemic will continue to actively purchase direct-to-home streaming entertainment... and that the wide variety of independent, art, foreign, action, genre and esoteric programming available on MyFlix will prove to be a welcomed alternative for those with "Netflix Fatigue" or general exhaustion of key titles from other high-profile sites.

Newly hired positions are:  Marketing Director, Web Programming Director, Data Manager and Programming Coordinator.  UPDATE (June 8, 2020):  On or about June 1st, a general press release will be posted listing these new staff hires, along with a group photo of the MyFlix team at work. Two of our four new MyFlix support staff hires did not start last week as previously planned... one was due to delays in relocation to NW Arkansas and the other due to a slightly longer requested "notice" period for a prior employer (to wrap-up a prior streaming-related project). This does not impact our timeliness for the August 25 initial consumer launch.

* * * * *

OTHER HHSE UPDATES:

*  DWAC / DTCC - We have been informed that our application for Electronic Clearing of HHSE stock shares has been APPROVED. This is actually a surprisingly impactful development for several reasons:

     a). LARGE INVESTORS - we have been handicapped from attracting some large and institutional investors to become HHSE shareholders because of the prior "paper certificate" handicap. With share issuances now available electronically, this obstacle has been removed.

     b). TRACKING AND POLICING OF SHORT SALES - The DTCC clearing makes it easier to track and block short-sellers by eliminating the uncertainty of potential share availabilities against which to borrow to cover a short sale position.

     c).  SUPPORTING BROKERS - There are only a few brokerage houses at present in the USA that will handle the clearance of paper certificates. But the electronic clearing opens up HHSE Shares to be cleared by almost all brokerage houses.

It will take up to two weeks for Standard Registrar to complete the process of converting HHSE transactions over to all electronic issuances. Additional updates will be provided on this blog.

*  FORM 10 UPDATE - HHSE continues to resolve the issues of third-party audit verifications and other document requirements.  HHSE has also received pledges of funding commitments of more than $1-mm from the initial $1.5-mm of the S1 Offering (i.e., 50-mm shares at $.03 each).  So, there's a tremendously attractive and beneficial reward within reach.  Additional updates will be provided on this blog.

*  BELLE STARR - HHSE has been negotiating a film financing venture to secure $5.5-mm to cover all costs for the production of the historic western, "The Legend of Belle Starr" (which will have two major "A" level stars). Subject to COVID-19 safety considerations, this film could begin shooting in September, 2020.  Additional updates will be posted on this blog.

*  WILDFIRE & "VIRTUAL CANNES" MARKET - The first-ever "theatrical trailer" from the current feature production of WILDFIRE is in the works... and will debut at the Virtual Cannes Market that is being held next month (in lieu of the physical Cannes Market in France, which was cancelled due to COVID-19 issues). While the trailer will have it's world premiere debut via the Virtual Cannes Market, HHSE shareholders will be able to see it the next day, via a link that will be posted on this blog site.

HHSE THANKS OUR SHAREHOLDERS AND OUR "LONGS" FOR YOUR SUPPORT!

HHSE Shareholders - What would you do if you were holding a winning lottery ticket?

Good Morning HHSE Friends & Followers – Recent stock trades for HHSE sparked the question that some of us would face when holding a winning lottery ticket.  Do we immediately announce it, cash it in, and decide what to do with the proceeds later?  Or, do we proceed with careful deliberation, strategic planning, and perhaps even implement the behind-the-scenes formation of a trust or tax-beneficial entity for the receipt of the proceeds before alerting the Lotto officials?

In the wake of the current COVID-19 Pandemic and its impact on businesses and task efficiencies, HHSE managers are facing a lot of pressure to cash our winning lotto ticket NOW.  Yes, our Form 10 Registration, our substantially pre-subscribed initial S-1 Funding, our MyFlix launch and our backlog of exciting HHSE news is like holding a winning lottery ticket in our collective, corporate pockets.  We know that in short order, sophisticated traders predict that HHSE shares will be trading for north of $.05 each and with the level of robust volume that makes a “last minute manipulative trade” of 5,000 shares ($41) - to “paint” a false value on the stock - into a non-event from desperately pathetic parties.

Yes, the HHSE stock has been targeted by a group of stock manipulators – actually more akin to some punks on a street corner than an actual organized crime effort by career players.  Regardless, HHSE management has been working with the FBI Special Crimes investigators for several years now, and we know the identities of these four individuals.  Even more telling, we know exactly which trading accounts they are using, and know that each of their transactions are being monitored and recorded… so we know when they put up a large “wall” of shares that it’s not real, and we can see when they post economically unjustifiable sales and wash-trades to attempt to manipulate the HHSE stock price.  Seriously, these four have made many HHSE sells of under 100 shares with a face-value of less-than-one-dollar ($1) in order to artificially manipulate the share price. What’s the average retail commission on trades?  Is it $6.99 per trade?  

Well, there’s a boatload of trade evidence of uneconomical transactions designed to “paint down” the HHSE stock price… so it will be quite a karmic moment to watch these guys try to squirm around the conflict about what brilliant stock traders they think they are, reconciled with so much evidence of intentional loss trades.

There’s so much in motion for HHSE right now that it’s very tempting to start releasing the news.  We would love to update shareholders on the financing for Meltdown, Belle Starr, Wildfire and four other films not previously mentioned.  We would love to release news about record-breaking streaming revenues in March and April.  We would love to release news about new suppliers (and “exclusive programming”) for MyFlix…. and so much more.

But instead of immediately jumping up and declaring our wins from the Lotto, we are instead following a path that we feel is ultimately best for our shareholders:  careful and deliberate movements so that the volume and value of HHSE shares and the company can be maximized.

In the meantime – it would be telling to see the results of a bit of buying pressure on the HHSE stock… now that these guys have finally pushed it to less than a penny (and instantly releasing a pre-written brag post to stock chat boards).  What would it take to pop the stock to $.02 immediately?  1-million shares?  2-milion shares?  Maybe even less.  But it seems like even $.02 would be a good base for HHSE as the corporate filings and current activities arguably support a far higher valuation.  Time will tell.  But for now, we have the confident and quiet smile across our faces… because we know we have what is essentially a winning lotto ticket in our HHSE pockets. 

So please don't let the street punks pee on your path.  HHSE is a winning company and the winds of positive momentum will blow that mess back into their faces.  Stay strong, stay safe!

Update on Form 10 Filing

Greetings HHSE Friends & Followers - As communicated in a recent blog, all of the work required of the HHSE management for use in the updated Form 10 (including the recently added 3-31-2020 details), was completed in a matter of days (by mid-April). 

However, getting third-party responses to various issues (including audit verification of material items and revised corporate tax returns to reconcile with the amounts of the IRS payroll tax levies), have both proven to be impacted by the current COVID-19 general shut down of businesses in the U.S.A.  While our audit team is still working "from home" - the GAAP requirement of receiving third-party verification on all major items of material value is challenging when the third parties are businesses that are functionally closed at this time.  Even trying to contact the IRS telephonically is impeded - so these issues have created a slightly longer delay in the finalization of the Form 10 than would customarily exist.

We are investigating the options to file "as is" under the COVID-19 limitations, and if such a move would be deemed reasonable by the S.E.C. under the current circumstances. 

There is no precedent in the history of the Securities and Exchange Commission for exceptions to customary requirements in a time of general emergency. Yet, there is also no precedent for the general shut-down that COVID-19 has inflicted on our society and business and governmental operations. In fact, the S.E.C. was one of the very first agencies to recognize the contamination threat from the Coronavirus when they made the decision to indefinitely shut-down their Washington, D.C. offices back in early March.  Accordingly, there is an expectation from HHSE advisors that a reasonable request would be considered. 

As new information is obtained, we will update this blog.

Meanwhile, stay safe and stay long.

Best Wishes - HHSE MANAGEMENT

HHSE Filings

Happy Easter / Passover and Spring to our HHSE Friends & Followers!

The company's 3-31-2020 filings have been submitted to both the OTC Markets site, as well as to M2 Compliance for XBRL Formatting and submission to the Securities and Exchange Commission.

Based on short-staff at the present moment for M2 Compliance, the formatting process will take slightly longer than is customary. However, they are indicating that the filing should be published onto EDGAR by Tuesday.

Stay Safe and Best Wishes!

HHSE MANAGEMENT

HHSE Strategy to maneuver through COVID-19 delays issues with the Securities and Exchange Commission

Greetings HHSE Friends - As everyone now knows, the COVID-19 pandemic has resulted in the functional closing of most businesses as well as the governmental service agencies moving into either a complete hiatus - or in some instances, reduced staffs or work-from-home staffs. 

The Securities and Exchange Commission was one of the first governmental agencies to move to a work-from-home policy in early March, and this immediately raised concerns for Hannover House with respect to our Form 10 Registration filing and the timing of the S.E.C. review of that submission. 

In respect of what is already being predicted as a 45-to-60 day backlog with the S.E.C., it has been recommended that Hannover House include the just completed 3-31-2020 numbers into the Form 10 filing (under a  CPA "review" quarter to supplement the two full "audit" most recently completed full years). The purpose of adding in the 3-31-2020 numbers is to protect against the possibility that the Form 10 could become stale while awaiting S.E.C. comments or approval.  It is unknown if the prior policy of automatic registration for issuers on the 60th day following a registration filing is still in effect.  Assuredly, we are advised, the S.E.C. comments to the HHSE Form 10 would not be provided before the 60th day if we were to file at this unusual moment in time. 

Accordingly, we are taking the safe route and including the 3-31-2020 numbers.  Early this week, this quarterly report will be released to the S.E.C. Edgar site (and simultaneously to the OTC Markets site). Days (not weeks) later, the 3-31-2020 numbers will be included in the Form 10 filing, which will be updated through the XBRL formatting process to be consolidated into the company's Form 10 registration filing.

Meanwhile - we continue to navigate the other issues that have been impacted by the COVID-19 shutdowns.  For instance, all of the courts for which HHSE has active matters are technically shut down, except for electronic access of filings for parties already recognized by the clerks of the court as an approved and recognized respondent. Accordingly, some of the filings that HHSE has prepared or submitted do not yet appear on publicly-searchable court docets.  It's "as if time were frozen" in the Arkansas, California and Pennsylvania courts back in mid-March.  Our attorneys have assured us that ANY filings made electronically by any other parties will not usurp the additional time that the courts have granted to ALL respondents in ALL cases as a result of COVID-19 courthouse closures.  So time remains frozen at the courts, and nothing of consequence can occur until the courts re-open and the time clock returns to the moment when the courts were closed (in respect of the number of days that a particular response would have been due prior to the closure of the courts). 

One more item of interest, and it seems a bit mercenary to even mention this. But, HHSE titles on streaming sites are having a RECORD month.  People are following the CDC guidelines to "stay at home" - and streaming services are reaping the benefits.  It's an unexpected silver lining to an otherwise very dark cloud that has cast its shadow over our economy, our nation and the entire world.

Stay strong, stay safe, stay at home and STAY LONG on HHSE!

Pick-up Shots and Second Unit Filming continues on the feature film "WILDFIRE" - while adhering to the State of Oklahoma guidelines to limit gatherings to ten persons or less, and "social distancing" as much as possible. Special Thanks to the CHEROKEE NATION MARSHALL'S DEPARTMENT for providing emergency vehicles and officers for key Third Act search and rescue sequences.