Welcome to the Hannover House Investor Relations Blog

Friday, August 18, 2017

HHSE Updates - Friday, August 18, 2017

Greetings HHSE Friends & Followers - Below are a few updates as requested by shareholders.

1).  MERGER UPDATE - The stock-for-stock swap, as originally structured back in March, placed a value on the Crimson Forest assets side which ultimately could not be reasonably supported by independent valuations. Accordingly, the ratio of stock for HHSE shareholders under the Crimson merger will need to be adjusted in favor of HHSE shareholders maintaining a larger percentage of the combined stock issued - and therefore, a higher premium-to-market formula. These Crimson Forest asset valuation issues impacted their balance sheets as well as the ongoing auditing process, but now seem to be heading towards a final resolution in the next few days. It is likely (but not assured) that the Newco post-merger company will be branded under Crimson Forest World Media, Inc., symbol CFWM.

2).  LEGAL UPDATES - Settlement in principal has been made with the producers of "UNION BOUND" through mutual legal counselors.  Settlement also seems imminent (according to HHSE counsel) in the XVIII matter; meanwhile, in anticipation of resolution and settlement, counsel for XVIII has extended the time for HHSE to file a response until the end of August. No other legal matters represent a material issue impacting the company outside of the ordinary course of business.

3).  NEW RELEASE ACTIVITIES - No formal theatrical re-launch date has been set for "BLOODFEAST" until the film receives the MPAA "R" rating (currently under appeal, after two rounds of editing).  There are THREE significant theatrical releases from HHSE for Q4, however, in respect of the merger activities and co-branding with other distribution partners, these titles have not yet been formally announced.  The first is opening in theatres Oct. 6 (so announcement needs to be done very soon).  The second release is November 3 and the final release of these three is Dec. 1 - all are significant level theatrical openings.  On the home video front, HHSE withheld / delayed the street dates to five titles that would otherwise have hit the video market during Q2 - and three additional titles that were slated for home video release during Q3.  These titles will begin hitting the home video, V.O.D. and Electronic / Digital platforms in Q4 and Q1 (2018).

4). NEW VODWIZ PARTNERSHIP - We are pleased, honored and excited to announce a new partnership with Amazon Digital to host the VODWIZ streaming platform - which is being tailored to fit the infrastructure of the Amazon Prime operations.  This major development has breathed a hurricane of new life into VODWIZ, so watch for updates on this venture beginning next week...

Tuesday, July 11, 2017

Production & Character Design Launched for MOTHER GOOSE, Major Feature

Greetings HHSE Friends & Followers - Two top visual effects & character designers have joined the MOTHER GOOSE production team, and have begun the process of designing the look of the principal characters in the film (including:  Mother Goose, Jack and Gillian, Old King Cole, Humpty Dumpty, Jack Horner and Tatiana Queen of the Faieries).  We're very excited to be moving forward with this long-awaited, epic family adventure, and will be releasing crew, talent and scheduling specifics through separate press announcements.

Friday, June 30, 2017

Shareholder Q&A - Pre-Holiday Weekend Post

Good Morning HHSE Friends & Followers - and Happy Pre-Fourth-Of-July Mega Weekend!

Over the past few weeks, HHSE / Crimson managers have received a variety of emails from shareholders asking for greater specificity regarding issues of the merger, operations and strategy.  These questions have been consolidated into TEN (10) key subject lines and are briefly addressed below, following a review with counsel as to breadth of disclosure and appropriateness.

* * * * * * * * *

1).  WHEN WILL THE STOCK-FOR-STOCK SWAP OCCUR - At this point, we have achieved the requirements to enable us to functionally 'do the swap" at any time (and simultaneously file the final docs with the Nevada S.O.S., and OTC Markets). There are no further regulatory obstacles impeding this final step. However, Crimson Forest is still "not fully current" with their S.E.C. reporting / filing... and we are advised that we cannot change the ticker symbol until "current reporting status" is restored. We do not want to do a stock-for-stock swap of HHSE shares into "CRIM" only to have to repeat some steps days later under the newly approved and issued ticker symbol. Plus, we feel it would be a psychological detriment to exchange robustly trading HHSE shares for Crimson stock while a "STOP" sign still exists on the current Crimson Forest Entertainment Group OTC listings page.

2).  WHAT IS THE TIMING AT THIS POINT?  HHSE / Crimson engaged a superb PCAOB auditing firm that will be submitting the review letters for 2-28-16 and 2-28-17.  This firm imposed some formatting requirements onto the workbooks and back-up for Crimson, which have been handled by a competent outside CPA firm (unaffiliated with either HHSE / Crimson or the auditing firm). Under PCAOB rules and Sarbanes-Oxley procedures, the internal control requirements rise above a consumer-level of QuickBooks and Excel formatting. So we were very excited to have this formatting step completed by a competent team of CPAs. Although our auditing firm has specifically requested that we not predict a particular "day" that they will release the report to us for inclusion in the Crimson filings, we are authorized to say that everything is on track for this to be completed "at some point during July."  FYI, July starts tomorrow, and ends in about four weeks from now.

3).  ARE THERE ANY MAJOR VENTURES READY TO "JOIN THE FOLD" FOLLOWING THE STOCK-SWAP?  Yes, several supplier issues, a major distribution venture, several mid-to-large level funding deals (including P&A Marketing, and VODWIZ), and one very significant corporate acquisition.

4).  WILL THE END-FORMULA OF SPLIT (Presently disclosed as being about 57.5% for HHSE and 42.5% for CRIMSON), STAY THE SAME?  No, during the course of the filings and various review procedures (including valuation analysis), the value of HHSE vs. Crimson has changed in HHSE's favor... so the final split will be more beneficial to HHSE shareholders.


Basement, Belle Starr, Delirium, Final Minute, Kung Fu Cowboys, Mother Goose, Shimmer, Shuck & Jive, True Freshman?

Each of these films is in various stages of development, pre-production or production. In respect of our filmmaking teams, investors and co-production partners, we feel that updates for each deserve a separate and more thorough forum than a general blog post summary.


American United In Support of our Troops, Blood Feast, Dinosaurs of the Jurassic, Extraordinary Mission, Identity Crisis, Ride United, Shockwave, Spices of Liberty, Time Matrix, Where's The Dragon?

Blood Feast, Time Matrix and Where's the Dragon are all upcoming summer theatricals.  The other titles are slotted already into our Q3 / Q4 release schedule for home video / VOD.  Each merits their individual New Release announcement.


Yes, four high-profile, very commercial titles have been acquired for 2017 theatrical release, each meriting separate announcements and fanfare.  Each of these titles will also be handled by HHSE / Crimson for home video, VOD, SVOD and Television release (for 2018). Additionally, there are three "specialty" titles that were acquired in Cannes that have not yet been announced - but are expected to be released theatrically in Q4 or Q1 2018.

8).  WITH TCA FULLY DISMISSED, ARE THERE ANY OTHER "MATERIAL" LAWSUITS IMPACTING THE COMPANY?   While there are still some clean-up issues regarding the resolution settlements with Andersons, Bedrock, JSJ and a few supplier-creditors, Management does not see any of the remaining issues as falling outside of managerial control or the ordinary course of operating a business of this nature.

9).  IS THE FINANCING FOR ALL OF THE ENHANCED THEATRICAL RELEASE ACTIVITIES NOW UNDERWAY COMING FROM "CRIMSON" SOURCES OUT OF CHINA?  Not at this time.  All of the P&A for the next eight (8) significant releases under HHSE / Crimson is being provided by either the producer clients directly, or through a marketing-fund venture (secured against title-specific revenues). The financing associates and affiliates of Crimson Forest in China are primarily interested in title-specific pre-sales of distribution rights into China, which provides a financing mechanism for the films to be produced and distributed by HHSE / Crimson in all other worldwide territories.

10).  BOTH OF THE CORPORATE WEBSITES FOR HHSE AND CRIMSON ARE VERY INCOMPLETE AND OUTDATED AT THIS POINT...WHEN WILL HHSE AND CRIMSON HAVE FULLY UP-TO-DATE WEBSITES, DESCRIBING THE COMPANIES, THE STAFF, THE RELEASES?  We expect that during July, both the Hannover House.com and CFF.TV sites will be fully updated, and "cross-connected" so that visitors to EITHER site will have access to both catalogs and content.


Monday, June 26, 2017

HHSE Pacts with Director Rick Walker on production of "THE BASEMENT"

Good morning HHSE Friends & Followers - We are pleased to announced that HHSE is partnering with director Rick Walker on a fourth project together - this time for the September feature film production shoot of "THE BASEMENT." Previous projects with Rick Walker included the horror film "FUN PARK," the college football documentary "SOONER MAGIC," and the upcoming science-fiction thriller "THE FINAL MINUTE."

"THE BASEMENT" will be shot in and around Fayetteville, Arkansas, in order to make use of the production equipment and post-production capabilities of Hannover House-Crimson - as well as the lucrative State of Arkansas rebates (which can be monetized to receive rebates for up to forty percent of a film's eligible expenses).  The thriller tells the story of a reclusive old woman in a large and spooky house - who is keeping a dark secret in the basement.  Negotiations have commenced with a major star for this role, with additional, commercial cast members expected for the roles of the two nephews as well as the Police Chief who unravels their scheme.

Production is planned for a four-week shoot commencing September 25 - and the film is expected to be a late spring (2018) theatrical release through HHSE-Crimson Forest.

Watch here for more details!

Old Lady Nelson is having some guests for Dinner...
She's cooking-up a special meal for you in 
T H E   B A S E M E N T

(Teaser Art - Not Final Campaign)

Friday, June 23, 2017

VODWIZ activities at Cannes Market bring Supplier Studios count to 22 - representing over 4,500 titles!

Good Morning HHSE Friends & Followers - One of the many exciting aspects of the new financing from the merger of with Crimson Forest, is the long-awaited availability of funding to finally launch the VODWIZ consumer portal.  In anticipation of the current frenzy of mastering activities underway, HHSE executives Eric Parkinson and Fred Shefte held many meetings at the Cannes market last month, to recruit additional large supplier studios for the venture.  The results of the Cannes meetings were to functionally double the number of feature titles now available for upload to VODWIZ, to a count in excess of 4,500 titles.  This quantity (if all were posted and available), would rank VODWIZ in the top five for programming breadth of North American video-on-demand portals.  

As stated in the past, we have felt that "there's only one chance to make a first impression" with consumers visiting the VODWIZ portal.  Accordingly, we have withheld the formal launch of the service (and consumer support marketing), until we can make a strong first impression. We feel that a site with a broad selection of titles - ranging from recent theatrical titles and major studio fare, along with esoteric and hard-to-find independent titles - is the formula to build consumer excitement and viral buzz.  We can finally see the finish line that marks the consumer launch for this exciting venture. Watch this space!!

Wednesday, June 21, 2017

Busy Release Slate for the Post-Merger Summer / Early Fall Months

Good Afternoon HHSE Friends and Crimson Forest Partners - The next few months will see significantly expanded activities, including a release slate and distribution breadth that represents the highest level of consumer visibility ever for Hannover House theatrical releases.

Five titles (two of which have been previously announced) will see theatrical openings on more than 100+ screens beginning in July... and continuing non-stop through October.  The announced titles ("BLOOD FEAST" and "WHERE'S THE DRAGON?") are up first... but three others (which will each be announced individually) are already in queue for August, September and October... resulting in a relentless march of increasingly commercial releases to theatres, These higher-profile theatrical titles will also drive greater placements and revenues into the home video, VOD and SVOD windows in the months following.

A WIRE SERVICES PRESS RELEASE detailing additional information on these national theatrical titles... as well as updates on new PRODUCTIONS, new FINANCING and MERGER (STOCK-SWAP and FILING UPDATES), will be posted today (or pre-market Thursday at the latest). The delay in releasing these updates involves obtaining third-party approvals of release details, as well as attorney review of language relating to the merger updates.

Friday, June 16, 2017

HHSE thanks Academy Award Winner KIM BASINGER for being our "Eternal Goddess!"

Dear HHSE Friends & Followers - we are honored to announce that Golden Globe and Academy Award winning superstar KIM BASINGER has completed her role in the Crimson Forest-Hannover House production of "WHERE'S THE DRAGON?"

Ms. Basinger performed the role of "Eternal Goddess" and was recorded in Santa Monica, CA at Villa Formosa Studios. Crimson Forest Chairman JON LIM and WTD Animation Director SING CHOONG FOO were in attendance, with English-Adaptation director STAR NOORBAKHSH supervising via ISDN from Crisp Recording Studios in Fayetteville, Arkansas. "WHERE'S THE DRAGON?" will be released to theatres nationwide this summer... watch this space for more details!

UPDATE: Tuesday, June 20 - HHSE / CRIMSON FOREST partner with REGAL ENTERTAINMENT GROUP for a high-visibility, national theatrical launch of "WHERE'S THE DRAGON?" opening Friday, August 25.  This date has been selected to maximize family support for this animated feature, and to position the title for ancillary sales success in the following months (Home Video / V.O.D. / S.V.O.D. and Television).  Competitively, in the category of animated family features, THE EMOJI MOVIE is releasing July 28 (Columbia), and the next major animated title is NUT JOB 2 on August 11 (Open Road), and LEAP on August 30 (Weinstein Company). 

Star Noorbakhsh (Foreground) supervises some of the voice-talent performers in "WHERE'S THE DRAGON?" during the recording of the closing credits ensemble song at Crisp Recording Studios.