Are you ready for some good news?

Dear HHSE Friends & Followers - apologies for being non-communicative for the past couple of days.  But we have a good reason for this distraction.  HHSE is finalizing the biggest financial (dollar-value) deal in the company's 28-year history.  This is a venture which will dramatically increase the company's revenues, bottom line and visibility.  The news of this venture will be released via a joint-announcement with "the other party" which could occur as soon as this Friday.  UPDATE: The company that we are venturing with is a top media / entertainment entity ranking in the upper echelon of the Fortune 500. We are discovering that the procedures for press release review and approvals are significantly slower than at HHSE. As a result, it is not likely that the news of this venture will be released today...

After 2-years of fighting to remove the fraudulent legal claims against HHSE - and generally struggling to hold it all together - it's VERY EXCITING and INVIGORATING to be focused back on the big revenue issues and activities.

Stay Tuned!

Update on HHSE Legal Resolutions

 Greetings HHSE Friends - As requested, here is a quick summary of legal activities during the past week that are part of the company's path to registration.

1).  LEWIN MATTER - HHSE complied with and satisfied the required benchmarks set for Oct. 22, and is on track for the long-term resolution and settlement of this matter.

2).  UPTONE - There is a hearing on Monday (Oct. 25) as set by the HHSE attorney, in order to dispute issues with that foreign default.  We will update this blog with a summary of the Monday hearing by Monday night.  UPDATE:  Attorney Daniel King left a message for Parkinson on Monday of a procedural issue that will move the date of the Monday hearing, "all good, will explain later."  

3).  ELITE ENTERTAINMENT - Although "Satisfied in Full" in 2014, the recording of this Acknowledgment of Satisfaction of Judgment" was never filed with the Arkansas courts... and HHSE was advised to complete this task in order to further evidence the completion of that former dispute.  The filing in Washington County, Arkansas was made yesterday (Oct 21).

https://images.arcourts.gov/IMAGESimg/CK_Image.Present2?DMS_ID=37E5FCA1550BCE279852FDB08FDB865F0AB970F319DD3256E91E13AB73D8A18FFB27CFB838599917399C35F9BF21A1ED23CC5B392A48FE8E3227AC1C78F45E7C&i_url=https://images.arcourts.gov/IMAGESimg

4).   DAISY WINTERS - L.A. Counsel is still preparing the motions for this matter, so this filing is not yet released.

 

MyFlix and HHSE Registration Updates

Dear HHSE Friends & Followers - What an amazing moment-in-time we are now witnessing! 

The North American Film Industry is in the middle of the greatest paradigm shift since the invention of the VCR.  None of the "old rules" apply anymore and the new media markets are in many ways comparable to the Oklahoma Land Rush of 1889.  

So many industry pundits predicted a revenue disaster when release-time windows between theatrical openings and home-streaming started shrinking. But the doom and gloom did not occur - and now a movie like "HALLOWEEN KILLS" can open #1 at the USA Box Office (with an opening weekend gross of $50-million) and launch on the same day direct to homes via Peacock streaming.  Instead of a revenue disaster, the rights holders and studios are now experiencing a revenue bonanza... as streaming revenues are paid almost immediately and do not have the traditional 50-50 (or greater) splits with theatrical exhibitors. More money and faster payment:  it's hard not to love this new media distribution model.

Which brings us to Hannover House and MyFlix.  

The MyFlix multi-studio streaming service combines the best of subscription models with the broad selection and pay-as-you-go options of the transactional sites.  The MyFlix portal also plans to include an educational channel, a gaming channel and a personal-access channel (similar to the YouTube service).  Already, over 40-supplier studios and film libraries representing over 15,000 titles have committed to participate with MyFlix,  Over 2,500 programs have already been fully mastered and formatted.  It's the right business model and the right time.

So, what does HHSE need to do to LAUNCH this site and make the service active, public and revenue positive?

For over two years, HHSE management has been responsive to shareholder enthusiasm to get MyFlix launched as-soon-as-possible.  We have set - and missed - several internally-scheduled launch dates, and always missed for the exact same reason that is unrelated to the merits or status of the MyFlix venture.  It's always been impeded due to the costs to properly launch this service.

HHSE calculates that the company needs about $500,000 in final on-boarding, design, consumer branding and pre-launch costs for MyFlix. The venture will then need about $500,000 more for the initial consumer outreach of publicity, P.R., bartered ads, paid ads and social media. Then, our post-launch activities to keep-the-train-rolling (and hopefully accelerating), will need another $1.5-mm over the six-months following the initial 90-day  cycle (these ongoing funds will be going for continued and enhanced ads, promotions and new title on-boarding costs).  At that point - approximately 9-months from initial launch - MyFlix could and should be cash-flow positive. So, it's a $2.5-mm investment in a venture that could turn into a $100-mm revenue machine. 

This is why the company's focus for more than two years has been on the steps needed in order for the necessary fund-raising to occur. We lost a lot of momentum in 2020 due to COVID shut downs impeding the legal resolutions as well as the sort of face-to-face relationship meetings that are needed when raising significant capital. But over the past six months, most of these obstacles have been removed and the pathway for completion has finally been simplified. 

The high-altitude view of the road map looks simple:

1). File the Form 10 Registration for HHSE;

2).  Use the new "fully-reporting" status as the basis for a S1 Offering to sophisticated investors that prefer to invest in fully-reporting equities.

With respect to item "2" above, HHSE has been in communication with major investors and feels confident that the first-tranche raising of the S1 ($1.5-mm) is fully committed, and that the second tranche ($2.5-mm) is very close to being fully committed. 

With respect to item "1" above, securities counsel for HHSE has advised the company to resolve "legal issues and financial obligations that meet the standards for material impact" in order that the company's registration not be subject to "going concern" issues by the Securities and Exchange Commission.

Three legal disputes were identified as issues requiring that HHSE take action, based on the dollar value of the claims:  Lewin vs. HHSE (N,Y,), UPTONE vs. HHSE (CA Fed) and Daisy Winters / Shuttlewoods vs. HHSE (L.A.). HHSE was informed that the filing of affirmative defenses in these actions would be sufficient to address the "going concern" issue; the filing of the Form 10 registration would not need to be delayed until each matter was actually adjudicated, but only delayed until the filing of legally meritorious responses. 

The Lewin case has now moved into settlement mode; the Uptone case has been filed, and the Daisy Winters filings are in final preparation for filing in California within days. Accordingly, the Form 10 is being updated to reflect the modified status of these items - and will be ready to release upon verification of the final legal response filings (and the acknowledgment of the legal merits of the filings). 

Back at ground-level, the details and documentation required to properly respond to these legal claims (or the time and resources required to make a settlement), can be all-consuming.  If HHSE focused 24/7 solely on the legal issues, then operational issues (such as MyFlix onboarding, Wildfire post-production and Belle Starr prep - which are essential to show the S.E.C. current activities and revenue generation), would stop. But until the Form 10 and S1 are filed, HHSE does not have the cash resources to hire a big enough staff to handle all projects simultaneously. So, despite management's good intentions and competencies, pretty much everything has been progressing these past few months at 2/3rds of our preferred speed.  

So, when will the Form 10 and S1 be filed? Is it the same day as the filing of the final legal dispute... or is it a few days later, following securities counsel's review of the going concern actions?  Will the 2019 and 2020 audits be sufficient if also supplemented with review statements for recent quarters?  How quickly will the S1 fund since HHSE has already been in communication with funding parties?  When will MyFlix go "LIVE" so that the site / portal and APP can be accessed by consumers?  When will WILDFIRE start to monetize revenues back to HHSE?  How much in production fees will HHSE earn from "Belle Starr" and when will this be paid?  What's the status of "Meltdown?" Can you release the names of the four cable / streaming / broadcast networks that are interested in licensing Season One of "Cowboys of Cannabis?" 

These are all questions that have been posed to HHSE management within the past two weeks by Shareholders. They are all good questions, and we understand the curiosity and excitement among our shareholders for these answers and the applicable timing of these activities.  So, let's jump back to the high-altitude vantage for a clearer view of the roadmap.

1).  Legal Filings & Review of going-concern items.  This triggers...

2).  Form 10 / S1 Filings.  These trigger...

3).  Initial S1 proceeds (Tranche's 1 and 2). These trigger...

4).  MyFlix Consumer Launch - promotion, growth and into positive cash flow.

Item 3, S1 Proceeds also trigger:  enhanced HHSE and MyFlix support staff; up to 30% of new revenues for payables / debt management; development of additional income-generating production ventures. 

HHSE cannot neglect any of these items or issues. Nor can we deviate from the orderly implementation of each without jeopardizing the success of each step.  We know that we cannot properly launch MyFlix without proper funding... and while raising this funding, we must still show current operational viability to minimize S.E.C. commentary on the filings. We recognize and acknowledge that some shareholders have lost patience and that all shareholders wish we were already "there" at the finish line.  In response to the many shareholder questions, what we can pledge is to update this blog over the next few days as the final legal issues are attacked and filed... which triggers the more exciting S.E.C. filings and activities resulting funding and new ventures resulting from the filings. 

We believe that MyFlix and the HHSE model for creating production revenues with the facilitation of locomotive-level titles provide a reliable, two-tiered business model that will maximize revenues and value for our shareholders.  This is not blue-sky hopes:  these are activities and ventures already in motion.  We believe that as awareness of the HHSE / MyFlix business model expands, that the volume and pricing of HHSE shares will reflect this enhanced profile. We see significant rewards for those betting on our success.

Watch this space...

Update / Status on HHSE Motions in "Daisy Winters" California Case

Good Evening HHSE Friends & Followers - California Litigation Attorney Daniel J.Y. King informs HHSE management that the timeline for filing in the Daisy Winters matter is still a few days away.  Previously, we had hoped for the company's motions to be filed by now.  However - during the past two weeks, King has reviewed the documents and communications regarding the prior settlement agreement, the proof of HHSE's full compliance with those settlement terms, and the subsequent release of the film by different distributors (DVD through Echo Bridge, from former HHSE VP of Sales TOM SIMS), as well as through Amazon Prime / IMDB-TV Streaming. 

In filing an opposition to the default, attorney King will argue the principal, applicable issues (including fully performed settlement), but will also argue issues "in the alternative" - including the mitigating / offset of revenues that the film received from the new distribution ventures.  These additional items require more time for drafting and supporting Exhibits.

Shareholders have been anxiously awaiting an update in this matter - as the DAISY WINTERS dispute is the last of three key legal issues that HHSE Securities Counsel felt should be addressed prior to the filing of the company's Form 10 registration and S1 offering.

Watch this blog space for updates on MyFlix and the registration filings this week...

Court Filings Evidence Forward Progress on Lewin vs. Hannover House Settlement

Dear HHSE Friends & Followers - Some shareholders have inquired about the filing made today in the Washington County (Arkansas) court docket in the matter of Lewin vs. Hannover House. As can be seen by Plaintiff's filing (below), ongoing activities have occurred regarding a settlement in this matter, the terms of which remain confidential at this time. Plaintiff has created a time-frame for HHSE to perform on certain settlement terms, which require that the enforcement writ be extended forward in time until after full satisfaction per the terms, or the final date set for this satisfaction (Oct. 22).

Due to the impediment that the Lewin matter has created for the company's registration and offering filings, the HHSE Board determined that an expeditious settlement was more advantageous to HHSE shareholders and operations than if we were to wait for the December appeal process in New York. Having reached these principal terms removes the matter as a "going concern" obstacle for the S.E.C., even though additional performance issues are still due in the near-term future. 

Corporate counsel for HHSE is also moving to set-aside or re-open two California based default judgments (UPTONE and DAISY WINTERS) so that ALL material impediments to the S.E.C. registration have been addressed.  Watch for updates in the next few days regarding the California actions.

Clarification on HHSE Press Release # 1 Today via Access Wire

Good Morning - HHSE Friends - After approval yesterday of the Production Update News Release to Access Wire, an eagle-eyed editor contacted HHSE to point out that the Parkinson quote in the release below could be misunderstood. To clarify, "WILDFIRE" is the first (announced)  HHSE facililitated-production that will have exclusive placement onto MyFlix after the first-window of Major Studio sales. As worded, it could sound like MyFlix might not have any other titles... which would be surprising news for the 51 pre-existing studio suppliers that collectively represent over 15,000 titles for MyFlix.  

HHSE is structuring a model for movies like WILDFIRE, LEGEND OF BELLE STARR and MELTDOWN (and other high-profile, original productions) wherein the first-run release will occur via a Major Studio partner (news coming soon!), with MYFLIX handling them thereafter. The company's days of dealing with low-end product and outside producers is over. 

ANYWAY - there is LOTS good stuff in motion.  The new WILDFIRE song with Michael Martin Murphey and Chevel Shepherd (music video shot on Tuesday) sounds like a big HIT - and something accessible to an all-new generation of music lovers! 

MORE TO COME....

Adrian Paul and Cara Jade Myers Join Cast for Hannover House Feature, "Wildfire: The Legend of the Cherokee Ghost Horse"

SAN ANTONIO, TX / ACCESSWIRE / September 3, 2021 / Television star Adrian Paul and Native American actress Cara Jade Myers have joined the cast of "Wildfire: The Legend of the Cherokee Ghost Horse" which is currently finalizing principal photography in southern Texas, announced distributor Hannover House, Inc. (OTC: HHSE). Adrian Paul is best known for his long-running, hit television series, "Highlander." Cara Jade Myers just completed filming the principal role of Anna Brown in the current Martin Scorcese period-thriller, "Killers of the Flower Moon" (which also stars Leonardo DiCaprio, Robert De Niro, Jesse Plemmons, John Lithgow, Lily Gladstone and Brendan Fraser). The addition of these final characters has allowed for the completion of this Hannover House-facilited production.

Chevel Shepherd, winner of NBC's "The Voice" competition plays the film's lead. Other stars in the film include box office star Anne Heche ("Six Days, Seven Nights"), singer-songwriter Michael Martin Murphey ("Lonesome Dove"), Native American star Mo Brings Plenty ("Yellowstone") and Major Dodge ("Cobra Kai"). Newcomers are Olivia Slatton-Fite, Mariah Davis, Harmony Holmquist, Ginny-Grace Ledbetter and Tyara Noon Thomas. Major Dodge IV, a recurring child star of "Roswell, New Mexico" plays Chevel's little brother in the film. Producer is Chris Large and writer-director is Eric Parkinson, who is also the C.E.O. of Hannover House.

"This is a huge step for Hannover House in completing our support of this film's production," said Eric Parkinson. "The film represents the foundation of our new business model which avoids third-party productions in favor of higher-profile films that the company facilitates. It is also our first film that will have an initial release through a major studio and the first title that will have a MyFlix home placement thereafter. We received many inquiries and offers from international buyers at the Cannes Film Festival in July, and the expeditious completion and delivery of the film will be a huge boost to the cash flow for Hannover House," he concluded.

Hannover House stock shares are traded on the OTC markets under ticker symbol HHSE. Large shareholders in Hannover House believe that credibility and enthusiasm for the company will dramatically increase with the current corporate filings, the completion of "Wildfire" and the launch of the MyFlix service.

For More Information Contact: Eric Parkinson, Eric@HannoverHouse.com 818-481-5277

Adrian Paul, Cara Jade Myers, Major Dodge IV and Chevel Shepherd are a happy family in "Wildfire: The Legend of the Cherokee Ghost Horse."

OSU COM Medical Facility in Tahlequah, OK was a state-of-the-art location for all hospital scenes in "Wildfire: The Legend of the Cherokee Ghost Horse." Pictured left to right: Producer Chris Large, Dr. Natasha Bray, Actor Adrian Paul, Administrator Ashlie Ashmore and director Eric Parkinson.

Country Music legend Michael Martin Murphey is joined by "The Voice" winner Chevel Shepherd in an all-new arrangement of the former # 1 hit song, "Wildfire," which inspired the film, "Wildfire: The Legend of the Cherokee Ghost Horse." The new Wildfire song and video will debut on CMT and is expected to receive strong radio play support - which distributor Hannover House feels will be of great assistance in promoting their upcoming movie.

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.