Hannover House Discloses Structure of $8-MM Funding for MyFlix Streaming Venture

Rhea-AI Summary

Hannover House (OTC PINK:HHSE) announced a revised stock offering aimed at raising $8 million for its streaming service, MyFlix. In response to increased share volume and pricing, the offering will consist of three tranches: 30 million shares at $0.05, 30 million shares at $0.08, and 40 million shares at $0.10. This modification allows the company to achieve its fundraising goals while selling fewer shares than previously planned. MyFlix aims to launch this summer with over 15,000 titles from more than 40 suppliers.

Positive

• Revised stock offering structure aims to raise $8 million for MyFlix, reducing total shares sold from 150 million to 100 million.
• Increased investor interest in Hannover House and MyFlix, indicating a positive market reception.
• MyFlix set to launch with over 15,000 titles, enhancing content attractiveness.

Negative

• None.

FAYETTEVILLE, AR / ACCESSWIRE / June 16, 2021 / In response to improved volume and pricing of its shares, Hannover House, Inc. (OTC PINK:HHSE) has modified the structure and pricing for up to eight-million dollars that the company hopes to raise this summer from a premium stock offering to support the new, multi-studio streaming venture, MyFlix. The company had previously stated its intention to offer large investors, funds, private individuals and institutions shares to support MyFlix at a price that would be a premium to the prevailing market price for HHSE shares. As interest in Hannover House and MyFlix has grown over the past few months, the company was motivated to modify the asking prices for shares under the offering.

The company's offering will be comprised of three tranches of stock. The first 30-million HHSE shares will be offered at $.05 each; the second tranche of 30-million HHSE shares will be offered at $.08 each; the final tranche will consist of 40-million HHSE shares at $.10 each.

"As awareness for MyFlix builds, we believe that smart investors will recognize the incredible, ground-floor opportunity and historically low share pricing for the first multi-studio digital streaming superstore," said Eric Parkinson, CEO of Hannover House and MyFlix. "We believe that the company's business model can support a share price that will quickly make even our third tranche pricing into a tremendous value," he concluded.

The complete share pricing strategy for the MyFlix raising by Hannover House, Inc. was disclosed in a Form 8 Information Statement posted with the Securities and Exchange Commission. The S.E.C. disclosure covering this topic reads as follows:

S1 OFFERING - INITIAL PRICING ADJUSTMENT - In respect of a recent improvement in both the volume and price per share for HHSE common stock, the Board of Directors reviewed a proposal to adjust the S1 offering to set higher pricing and lower total shares sold as a means to achieve the same corporate fund-raising goal (e.g., $1.5-mm initially, $2.5-mm as a secondary raising and $4-mm as a final raising). As previously structured, each raising was to offer 50-million common stock shares. The first offering was to offer shares at $.03 each, followed by offerings at $.05 and $.08 for the second and third tranches, respectively. Due to the improvement in the HHSE share prices, the $.03 share level for the first S1 tranche may no longer represent a significant premium price over market trading, which has been a stated goal of management. It is management's position that a premium price for the S1 tranches can be justified both from a standpoint of the demonstrable improvement that occurs to the HHSE pricing when faced with volume buys, as well as the goal to create a greater incentive for the S1 purchasers to hold onto the shares for a longer than the short-hold cycle that many in the general marketplace. Accordingly, and subject to consultation from legal counsel, the Board approved a revision of the S1 offering to be modified as follows: a). The First Tranche of shares will be offered at $.05 each, with an allocation of 30-million shares; b). The Second Tranche of shares will be offered at $.08 each, with an allocation of 30-million shares; c). The Third Tranche of shares will be offered at $.10 each with an allocation of 40-million shares. This plan, if approved by counsel and implemented, will result in a total potential issuance of 100-million shares, as opposed to the prior structure which would require the sale of 150-million shares to raise substantially the same amount of capital for HHSE (e.g., $7.9-mm instead of $8-mm).

https://www.sec.gov/Archives/edgar/data/1069680/000149315221004946/form8-k.htm

Hannover House has been operating continuously since 1993, with activities in publishing, video distribution, theatrical exhibition and feature film production. The new MyFlix service will launch to consumers in late summer, and is comprised of more than forty supplier studios with over 15,000 titles currently available.

FOR MORE INFORMATION CONTACT: Eric Parkinson, Eric@HannoverHouse.com / 818-481-5277

SOURCE: Hannover House, Inc.

View source version on accesswire.com:
https://www.accesswire.com/651919/Hannover-House-Discloses-Structure-of-8-MM-Funding-for-MyFlix-Streaming-Venture

FAQ

What is Hannover House's stock offering structure for MyFlix?

Hannover House is offering three tranches: 30 million shares at $0.05, 30 million shares at $0.08, and 40 million shares at $0.10.

How much capital is Hannover House aiming to raise for the MyFlix streaming service?

Hannover House aims to raise $8 million for the MyFlix streaming service.

When is MyFlix expected to launch?

MyFlix is expected to launch to consumers in late summer.

What are the benefits of the revised stock offering for HHSE?

The revised offering allows Hannover House to raise funds while selling fewer shares, potentially supporting a stronger share price.

What content will MyFlix offer?

MyFlix will feature over 15,000 titles from more than 40 supplier studios.