Resolution of Legal Obstacles Clears Path for Hannover House Registration Filings
Hannover House (OTC PINK:HHSE) is addressing two of three legal issues impacting its Form 10 Registration with the SEC. CEO Eric Parkinson anticipates the resolution of the last matter within two weeks, enabling the filing of the S1 offering. The company plans to raise funds by offering 60 million shares in a three-tranche offering at $0.05 and $0.08 each to finance its new MyFlix streaming service and feature films. The shift from DVD distribution to direct-to-consumer streaming aligns with market trends, aiming for higher margins and profitability.
- Resolution of two legal issues facilitates Form 10 registration.
- Proposed S1 offering to raise capital for MyFlix and feature films.
- Strategic shift towards streaming aligns with market demand for direct-to-consumer services.
- Ongoing legal matter may delay the registration process.
- Dependence on prospective S1 offering could signal financial instability.
FAYETTEVILLE, AR / ACCESSWIRE / September 27, 2021 / With two of three legal issues now settled or addressed, Hannover House, Inc. (OTC PINK:HHSE) projects a short timeframe for release of the company's long-awaited Form 10 Registration with the Securities and Exchange Commission, announced C.E.O. Eric Parkinson. The final remaining legal matter is scheduled to be addressed by corporate counsel through motions to be filed in California within the next two weeks, which will clear the path for the release of the company's registration statement. All three of the legal issues that had impacted the company's registration filing were "foreign default judgments" that occurred during the timeframe in 2018 that former HHSE President Fred Shefte was hospitalized and non-responsive to court deadlines.
"We see a quick resolution for this final legal matter," said Parkinson. "But we are not required to wait for the court to rule on final adjudication. We merely needed to show that the company has presented and filed strong responses. This will enable us to release the Form 10 registration and the companion filing of the S1 offering statement and implement our two-tiered business plan," he continued.
Hannover House, Inc. will be launching a new multi-studio streaming service, MyFlix, as well as developing major feature productions with proceeds from a proposed S1 offering that will occur immediately after the filing of the Form 10 Registration with the Securities and Exchange Commission. The company will be offering 30-million shares at $.05 each initially, and 30-million more shares at $.08 as part of a three-tranche S1 offering to qualified investors. Hannover House has been in communication with major investors and media companies, and feels that there is strong support for the full subscription of these first two rounds of the S1.
The launch of the MyFlix service requires a significant investment in consumer advertising and publicity which the company plans to finance with proceeds from the S1 offering. Accordingly, resolution of the legal issues impacting the filing of the Form 10 and S1 have been a priority for management over the past six months. Hannover House, Inc. has also been in development of a slate of high-end feature film productions, including two announced titles, "Meltdown" and "The Legend of Belle Starr." Although the production costs for these (and other) major features is being funded through presales and incentives, the company intends to allocate a portion of S1 proceeds for feature film development costs.
In other HHSE news, the company's first facilitated production, "WILDFIRE: The Legend of the Cherokee Ghost Horse" is now well into editing and post production, having wrapped principal photography in South Texas earlier this month. Filming on the Pilot of the upcoming reality TV series, "Cowboys of Cannabis" was completed last week, and pre-production was launched for the spring 2022 major feature of "The Legend of Belle Starr." A full revamp of the company's website is also underway to update these and other projects and to refocus on the company's business model of original productions and the MyFlix portal.
For the past twenty years, the primary business model for Hannover House was to distribute DVDs and BluRay units of independently produced feature films. As the market shifted away from physical units in favor of direct-to-home streaming, Hannover found the physical DVD business to be more problematic than profitable, and began moving resources into the streaming arena with the MyFlix portal concept. Contemporaneously, as the market has evolved to favor bigger budget features with major stars, the company has been developing original productions that will generate operating income, long-term profits and serve as high-end locomotive titles.
"We are on the front line of the two most lucrative business sectors of the entertainment industry," said Parkinson. "Direct-to-consumer streaming via MyFlix offers higher-margin, faster cash flow than the physical home video model. And the major feature productions will provide overhead, asset growth and long-term profitability. The next few weeks will set up the company for a very exciting growth phase in these lucrative arenas and we are excited to deliver these results to our shareholders," he concluded.
For more information contact:
Eric Parkinson
Eric@HannoverHouse.com
818-481-5277
SOURCE: Hannover House, Inc.
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