Welcome

Welcome to the Hannover House Investor Relations Blog

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.

5).  WHAT SORT OF UPDATES CAN YOU PROVIDE ON PREVIOUSLY ANNOUNCED PRODUCTIONS (alphabetically):

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.

6).  WHAT SORT OF UPDATES OR SCHEDULE CAN YOU PROVIDE ON UPCOMING THEATRIAL & VIDEO RELEASES (including):

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.

7).  ARE THERE ANY NEW "MAJOR" RELEASES FOR 2017 NOT YET ANNOUNCED?

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.

HAVE A GREAT AND LONG WEEKEND!!






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.

Thursday, June 15, 2017

... yet another victory for HHSE!

Greetings HHSE Friends & Followers - As reported in this blog, the prior litigation and loan dispute between Hannover House and TCA Global Master Fund was settled quite some time ago, and finally filed with the Florida courts on May 17.  The 10-mm collateral shares have been cancelled, and this matter is closed.

Again, this is ancient news for those reading this blog site (and recognizing the legal obligation HHSE is under to report with full accuracy on the status of issues at the date of such disclosures).  But in respect of those few, remaining naysayers who prefer "willful denial" to truthful reality, here's the court docet listing.  ONWARD!!



Wednesday, June 14, 2017

Be patient, my friends and you will be rewarded

Good morning HHSE Friends & Followers - As the days turn into weeks, some shareholders have lost patience awaiting the final closure of the impending CRIMSON FOREST-HHSE Merger and how that will impact the bottom-line value of their HHSE shares.

We can state unequivocally that the value of the HHSE shares post-merger is substantially over the $.03 / PPS level - and furthermore state that following a lengthy telephone call with FINRA on Monday, that the few, remaining issues impacting the final step (the stock-for-stock swap) are being resolved and will promptly remove any final impediments to the stock exchange.

For those of you who have grown impatient and feel you must sell-sell-sell now, we bid you farewell and safe journeys.  But we also have an obligation to disclose that the stock-for-stock swap is based on a much higher value to HHSE shareholders (regardless of the temporary, day-to-day variations of the current trading price).  Selling now will only hurt those particular sellers, who we suspect may feel rather foolish in the coming days.  As the merger is structured, HHSE shareholders are being issued newly re-branded Crimson shares based on the predetermined level of the company's assets... not based on the momentary trading price of the HHSE stock prior to the swap.

Unless you have an urgent need for liquidity, veteran traders will be sitting it out for this final, brief pre-swap spell. This morning's blog is being posted now, in the final days before the stock-swap, as an advance rebuttal for anyone who might later claim "we didn't know" (about the short time frame to the swap, and the HHSE valuation being established at substantially over $.03 / PPS).  

For those of you hanging on... it's going to be an AMAZING Summer, followed by a consistent and accelerating momentum in revenues and results through the next few years.  This is the "prize" that HHSE management has been working to achieve:  a fully-reporting equity, substantial operational and marketing funding, and a slate of star-driven, high-profile movies to serve as revenue locomotives!  Watch this space...




Tuesday, June 6, 2017

Corporate Updates on Merger Events / Resolutions

Good afternoon HHSE Friends & Followers - In anticipation of our pending merger approval, HHSE has been working with our attorneys and key creditors on the final resolution of some of old issues that have been fuel for stock critics - but which were never material threats to the operations of our business.  Here's a quick recap of some recently resolved matters and pending transactions:

1).   TCA GLOBAL MASTER FUND - as stated previously in this blog, a settlement was made with TCA to fully close all maters... well it's finally been filed with the courts in Florida... as the court-recorded documentation of settlements sometimes occurs weeks / months after the deals are made.  In any event, HHSE stock certificate #1530, issued June 18, 2013 as collateral for the TCA Investment Advisory Fee has been cancelled, and these 10-million shares will be returned as unissued treasury stock.

2).   JSJ INVESTMENTS - Principal terms of a settlement are expected this week, based upon communications between attorneys.

3).   ANDERSONS P&A - Principal terms of a settlement are expected this week, based upon direct communications with the lenders.

4).   BEDROCK VENTURES - Company has engaged counsel to re-open the case under Arkansas Law, as compelling evidence exists to have the California matter vacated.

5).   AMITYVILLE ASYLUM - New counsel has been engaged in this matter, which is expected to be settled (or adjudicated) by June 27.

A separate Blog Posting on Merger activities with Crimson Forest is being prepared for later today.

********************************************************************************
UPDATE:  Greetings HHSE Friends. The update planned for Tuesday got hijacked by some post-merger funding details that monopolized managerial time for the past two days.  As alluded to in some of our recent, prior blogs and filings, five significant media players (all China-based) will be conducting various financing transactions "post-merger" that will provide production funds, releasing funds and operational resources.  It is our belief that the balance-sheet value and revenue benefits from these various transactions will not only transform the company, but will also elevate the business to a level of qualifying for the NASDAQ exchange.

Meanwhile, here are some quick updates for those issues which we are authorized or empowered to disclose at this time:

1).  MERGER APPROVAL - we have not received any regulatory feedback that would indicate any issues, delays or problems with the valuation methodology and the stock-for-stock swap.  We have separately applied for a Crimson ticker symbol change, and are awaiting word on that matter as well.

2).  DTC / STOCK FOR STOCK SWAP - Our advisors tell us that HHSE shareholders will not need to do anything in order for each of them to receive Crimson Forest shares on the date of the stock-for-stock swap.  Crimson shares are DTC (electronic) and this will avoid the prior issues some shareholder incurred regarding paper certificates from HHSE.

3).  PREMIUM VALUATION - as structured, HHSE shareholder will receive Crimson shares at a significant premium value-to-market.  We cannot disclose the percentage structure until we receive full-regulatory approval.  However, the bottom line is that a shareholder owning "$X" worth of HHSE shares will receive "$X++" of newly re-branded Crimson shares.

4).  CRIMSON SHARE SUPPORT - Contemporaneous with the merger, several of the China-based affiliates will be buying blocks of Crimson stock on the public markets.  It is our belief that this will further support the Crimson share price and result in an even greater appreciation of value for HHSE shareholders.

5).  POST MERGER ACTIVITIES - Besides the launch of several high-profile theatrical productions post-merger, the newly re-branded Crimson-HHSE will be (finally!) launching the VODWIZ portal, and embarking on three, very exciting new distribution ventures involving North American activities, International Sales, and Theatrical Distribution in China.  It is our belief that these significant post-merger activities will have a dramatic impact on the company's revenues, visibility and valuation.

6).  TIME FRAME - we believe that we are only days away from completion of the tasks that are required for the regulatory approval of the stock-for-stock swap, and the physical share exchange.  However, as this time frame is driven by outside agencies, we cannot provide a more specific prediction of the precise day that all of this will be completed.







Sunday, June 4, 2017

Post-Cannes & Merger Follow-Up Blog Post Slated for Tuesday, June 6

Greetings HHSE Friends & Followers - At the request of a good number of legitimate shareholders, we have been asked to release both a "post-Cannes" follow-up report... as well as an update / status blog on the present status of the Crimson Forest-HHSE merger completion.

Both topics require third-party approvals of information (or legal counsel);  accordingly, we have set Tuesday (June 6) as our target date to release whatever level of new information is approved for disclosure at that time.

As stated previously, the Cannes Marche du Film was brisk and productive for the combined entities of Hannover House - Crimson Forest, and there were significant new venture deals structured for an impressive slate of high-profile theatrical titles with major stars.

Also, as per prior disclosures, the two companies (Hannover House and Crimson Forest) are already operating as a combined entity, with the only outstanding issue being the stock-for-stock swap (of Hannover House shares into a newly rebranded Crimson equity); the steps for this final process are well into motion, but require regulatory review and approval which is outside of the direct control of HHSE-Crimson managers.

For a variety of reasons, the Cannes Film Festival and Marche du Film is the unquestioned, dominant world market for high-end films.  The luxurious destination is an attraction for the major buyers, and the costs and obstacles to travel and obtain festival credentials pose obstacles to keep away the sort of peripheral non-industry-outsiders who might otherwise clog the lobby of the AFM Lowes Hotel in Santa Monica. The coveted Cannes Buyer's Badge is the ultimate pass to all locations and major events, but requires multiple, positive-referrals from registered sellers.  So, we have been very honored to have achieved this recognition status for the past four years:  a validation of Hannover's stature, proclaimed by top industry insiders and some of our current and prior program licensors.

Assorted photos from Cannes meetings are below and on prior Cannes blogs...



Sunday, May 21, 2017

What a difference a YEAR makes!! Brisk Cannes Reception for HHSE-Crimson as PreSale Buyer!

Greetings HHSE Friends & Followers - Parkinson and Shefte are enjoying a brisk market reception at CANNES to the news of the Crimson Forest merger - and the combined company's subsequent availability of $65-mm in presale financing for high-end feature film projects.  The caliber of meetings and products being presented is unprecedented for the Company - and lots of deals are being made.  In respect of the caliber of these films, each new acquisition will be announced via a separate and formal press release.  But for now, here's some quick images from the first three days of the 70th Annual Cannes Market for Hannover House / Crimson executives....

Dual Registration as Crimson and Hannover House. 

Fred and Diana Shefte at the TV Rights Dinner.

MAJOR feature announcement (our biggest budgeted film EVER) coming soon between HHSE-Crimson and UK's SILVER LINING Films (Parkinson pictured with Grant Bradley of Silver Lining).

Non-Stop action on the Palais Steps.

Lovely little alcoves, stairways and hidden gems in Canne's historic old town.

The Castle that overlooks the Canes harbor is atop the distant hill.

The Future is Bright - and so is the Cannes Beach (Parkinson really should be wearing shades!)

Wednesday, May 3, 2017

FIRST LOOK: Official Theatrical Poster of "BLOOD FEAST" has Horror Fans and Publications Hungry for More!!

Greetings HHSE Friends & Followers - The June 23 release of "BLOOD FEAST" keeps growing in stature, breadth and consumer enthusiasm.  To best position the film for theatre lobby light-boxes and ads, we chose to go with a "lighter background" concept for the official poster... and consumers have told us that it's deliciously evil! (pardon the puns).  Watch for more news as it develops... and if you have time, check out the link below for a nice article about the release.



Monday, May 1, 2017

Opening at theatres this FRIDAY: Action-Extravaganza SHOCK WAVE!

Hannover House and Crimson Forest Entertainment Group, Inc. announce the theatrical release of "SHOCK WAVE" - launching this Friday to theatres in top markets in the USA and Canada, as well as a simultaneous release to nearly a 1,000 theatres in China.


https://www.youtube.com/watch?v=f_nvtHX9QOc

Distribution office staff are getting the posters, trailers, final week ads and masters out to theatres now!

"SHOCK WAVE" is from acclaimed action director HERMAN YAU (director of the international hit "Legend of IP Man" series) - and features international superstar action hero ANDY LAU (most recently co-starring with Matt Damon in "THE GREAT WALL" as well as "INFERNAL AFFAIRS"). This is an AWESOME and EPIC action-adventure!






HERE'S A PARTIAL LIST OF "SHOCK WAVE" LOCATIONS / MAY 5 / MAY 12

Theatre City
AMC Empire 25 New York City
Regal Commerce Center 18 North Brunswick
AMC Orange 30 Los Angeles
AMC Puente Hills 20 Los Angeles
AMC Atlantic Times Square 14 Los Angeles
AMC Cupertino Square 16 San Francisco
Riverview Plaza Stadium 17 IMAX & RPX Philadelphia
Regal MacArthur Marketplace Dallas-Ft. Worth
Countryside 20 Washington DC
Regal Hollywood Stadium 24 @ North I85 Atlanta
Edwards Marq'E 23 Imax Houston
AMC Studio 30 Houston
AMC Gulfpointe 30 Houtson
Regal Thornton Place Stadium 14 Seattle
AMC Sunset Palace 24 Miami-Ft. Laud.
UA Arden Faire 6 Sacramento
AMC La Jolla Village 12 San Diego
AMC Bloomington 11 Indianapolis
AMC Newport on the Levee 20 Cincinatti
AMC Lennox 24 Columbus
AMC Grove City 14 Columbus
Regal Dole Cannery 18 Honolulu

Thursday, April 20, 2017

HHSE nears final completion of "WHERE'S THE DRAGON?" - Coming soon to theatres!


We still have a few more tweaks to the mix and final cut... but "WHERE'S THE DRAGON?" will hit theaters nationwide in June - and will be one of the first highly-visible, mainstream theatrical titles under the newly merged corporate structure.  

As stated previously, the HHSE Merger activities are expected to have regulatory approvals on or about Monday, May 1st - which will be well-timed for the company's presence at the Cannes Film Festival and Marche du Filme as both a seller of major theatrical titles, as well as an acquisition licensor for North America rights under a new, Major Studio distribution pact. 


Very exciting times... 

Monday, April 17, 2017

The beginning of something truly significant…

Those who cannot remember the past are condemned to repeat it.”
George Santayana, The Life of Reason, 1905.

For fifteen of the twenty-three years that Hannover House has been operating, the company has been involved with the acquisition and release of movies and television programs onto DVD and other home media platforms.  Since that time, the company has released or represented over three-hundred-fifty (350) titles, ranging from significant sell-thru hits, to specialty home videos for targeted audiences.  At last count, the company had sold a total of over 34-million home video units to retailers in North America (primarily DVD, but some on the BluRay format and in the early years of Hannover’s home video distribution, some were sold on the VHS cassette format). 

Not every title acquired and released by Hannover House to the domestic home video market these past 15-years has been a financial success for the company.  The biggest failure of expenditures-compared-to-revenues was the 2005 release of “Off The Lip” – which, despite a theatrical release expenditure of more than $350,000, did not manage to inspire a single one of the nation’s top mass merchants for home video placement.  Fortunately, the loss with “Off The Lip” occurred at the same time when Hannover House had seven (7) of the top ten (10) best-selling indie video titles at Walmart – when we were literally selling-thru to consumers over 100,000 units per week through Walmart nationwide.  So that initial theatrical release endeavor was expensive, but not deadly.  And a valuable lesson was learnt:  opening movies at theatres only helps the retail home video response if the movie actually DESERVED (commercially) to have been released to theatres. 

As Hannover released more titles to the home video market, trends began to emerge, even as the market itself was maturing and evolving.  By 2008, when Walmart, Target and Best Buy started aggressive merchandising of the (then) new BluRay format, the shelf space was usually reallocated away from independent DVD titles, and migrated for use in displaying BluRay units of major studio releases.  That was a big loss for all indie distributors – and making our second-tier titles “available on BluRay” did not pick-up the slack.  By 2010, certain genres of home videos for indies studios were drying up or functionally non-starters:  “no-name comedies”, “dramas” and “special interest subjects” could no longer be placed at the big-box retailers due to sluggish retail turns.  The major studio theatrical releases were holding their home video sales volume, but at the expense of diminishing shelf space and placement frequency for the indie distributors.

It was about that time (late ‘2009 / early ‘2010) that Hannover House was offered the opportunity to “reverse-merge” with Target Development Group, Inc. and become a publicly-traded company.  This was not a desired goal for either Eric Parkinson or Fred Shefte.  But the TDGI venture came with an attractive investment-banking arrangement with Bedrock Ventures:  in consideration of the merger, Bedrock would place $1.5-mm as a direct stock purchase agreement, and would separately fund loans of $500,000 towards acquisitions and $300,000 towards P&A (theatrical releasing costs). 

Energized with these funding commitments in hand… and motivated by a positive thumbs-up from several of the industry’s top consultants… Hannover House took the leap-of-faith and decided to try for a mid-level, nationwide theatrical release.  In January, 2010, Hannover House surprised the industry by beating out SONY, FOX and LIONSGATE at the Sundance Film Festival for the acquisition of director Joel Schumacher’s teen-angst thriller, “TWELVE.”  The cost was high:  $1.75-mm plus a theatrical release commitment to open on not less than 200 theatres simultaneously.  But the upside seemed greater, and after all, the funding had been secured (or so we thought).  While Bedrock did, indeed, fund the $500,000 as a loan for the down-payment for rights to “TWELVE(and later, funded $300,000 of the $2-million+ spent on theatrical releasing costs), their original agreement to fund $1.5-mm as a direct stock purchase never occurred. 

With only a few weeks to go before “TWELVE” hit theatres on August 6, 2010, Hannover House was in full-scramble mode, working diligently to try to secure vendor credit, private loans, and ancillary sales advances to help cover the theatrical costs.  We went from being a reliable (but small) indie distributor, to being full time managerial firemen, moving from one emergency flash outbreak to the next.  The release of “TWELVE” suffered, the relationship with Bedrock tanked, and the company was put into full scramble mode for months thereafter.

Over the next six years that followed – the history of Hannover House has been a bit of a roller-coaster ride, for both management and shareholders.  High moments – such as a multi-million-dollar sponsorship from SEA WORLD in 2011 (for “Turtle: The Incredible Journey”) were met with humiliating lows, such as the principal cast’s refusal to attend the red-carpet premiere of “All’s Faire In Love,” in New York City (also in 2011). In each of the successive five years, Hannover House has overcome significant obstacles, and met with welcomed successes, only to face financial challenges and legal struggles.  Finally, when the most notable events in 2016 were the bankruptcy or closure of the company’s top two wholesalers, it became clear to management that it was time to look at a whole new business model:  one that meets and leads the dynamic edge of the industry, rather than seeks out the occasional crumbs from the trailing tail.

In order to build a better company, it is essential that HHSE managers and shareholders take a high-altitude look at the trends in the industry to best determine the direction in which the consumer market for entertainment is moving.   Skipping over the volumes of industry research, sales trends and analytical studies to reach the consensus bottom-line conclusions, we see Ten Essential Trends:

1)      DTV - “Direct-to-Video” programming is rapidly declining in retail value in the North American retail marketplace;

2)  RENTAL – Except for Redbox Kiosks, Family Video and a handful of stubborn independent video specialty stores, there is functionally no more retail “rental” home video market in the USA;

3)  VOD - “Video-On-Demand” continues to grow, but disproportionately in favor of theatrical titles;  VOD is the new “rental experience” for the emerging generation of consumers;

4)  SVOD - “Subscription V.O.D.” license fees are dropping precipitously as Netflix now favors major theatrical hits or their own programming over independent or non-theatrical titles;

5)  INTL - Key International Markets are booming for specific film genres:  Action, Sci-Fi and Horror; but low-budget, no-stars or non-theatrical titles are functionally impossible to sell today;

6)  PRODUCTIONS – Due to the availability of significant international pre-sales for selected programming, as well as State and Federal tax and rebate incentives, there is a viable business model that includes the facilitation or physical production of films as a revenue source;

7)  DISTRIBUTION PACTS – As the retail market shifts away from independent titles – in favor of Major Studio titles – the value of a major studio partner has grown exponentially… both for domestic release, but more crucially for international territories;

                  8)  WHAT ARE CONSUMERS, INTL. BUYERS & RETAILERS RESPONDING TO?  
a)      High-Concept Films – action, science-fiction, horror, family-appeal;
b)      Films with one or more “name” stars;  Films shot in "original language" English;
c)       Films with wide theatrical visibility, momentum and credibility;

9)      WHAT ARE CONSUMERS, INTL BUYERS & RETAILERS NOT RESPONDING TO?
a)      Low-Budgeted releases, without stars or theatrical visibility;
b)      Comedies & Dramas are dead genres, unless driven by credible stars in lead roles;
c)       Micro-budget production values that do not compare to mainstream quality expectations;

10)  BALANCED RELEASE SLATE – There is an economy of scale for a distributor in the current marketplace to release ONE (1) “major” theatrical title per quarter, plus ONE (1) “mid-level” theatrical title per month, and supplement these with one or two third-party acquired titles that still are essentially “direct-to-video” or V.O.D., but are now supplemental revenues (rather than the company’s primary cash-flow source).

*******************************************************************

WHERE ARE WE NOW - WHERE ARE WE GOING FROM HERE?

Last Month, on March 10 specifically, Hannover House managers signed a letter-of-intent to join with another publicly-traded company, two private companies and a major studio distribution partner, to create a new structure that addresses each of the Ten Essential Trends described above, and which we feel will bring substantial value to our shareholders.

Over these past five weeks, the legal, operational and structural changes that are required to effectively launch such an ambitious merger have been in motion.  The two privately held companies will join with the two publicly-traded companies into an overall venture that is fully reporting, fully registered, and sufficiently funded to allow for a realistic pursuit of a NASDAQ listing.  This venture involves the placement of approximately sixty-five million dollars (USD $65,000,000) from pre-existing international presales and feature film private investor commitments, and will provide us with both the high-end “major” titles as well as the first two-years of the “mid-level” theatrical titles.  Due to availability of State and Federal incentives and rebates on the productions, the company will also be well funded with theatrical releasing resources – as well as earning lucrative production company service fees upfront.  A major studio partner will handle most of the domestic home video and V.O.D. activities (excluding VODWIZ.TV) as well as international sales through their existing distribution units in over 100 territories worldwide.

Upon regulatory approval, existing Hannover House shareholders will receive a significant premium-to-market redemption, and overall, the Hannover House shareholders will retain a majority control in the combined entities.

Over the next few days, details of the venture partners will be released through mutual public announcements. As the merger L.O.I. contains performance triggers (including specific funding requirements and regulatory approvals), Hannover House has honored the temporary, proprietary confidences imposed on all parties - as is customary for a venture that involves four separate companies and a major studio distribution partner.

For the principal venture parties involved in this new structure, we all feel that this is a marriage in which the whole is greater than the sum of the parts.  The consensus is that this is the “launch moment” for a truly significant entertainment company… and a move that will bring substantial value to all of our shareholders.

We wish to thank the company’s many patient, “long” shareholders, and we are excited that you will be rewarded for your loyalty and support as we have navigated a winning plan in this evolving media sector. The new management team includes some of the industry’s most respected and successful executives, and our future as a successful, independent studio and media distributor is bright.  Watch for updates on this BLOG, including advance notification of Form 8 Information Statement Filings.

*****************************************************************************

LAST - BUT NOT LEAST - Watch for the Hannover House - CMC Pictures / Crimson Forest Release of "SHOCKWAVE" to key theatres in the USA and Canada on Friday, April 28 - with a simultaneous release across China. This is a specialty release for the North American market (Mandarin with English-subtitles), to reach this responsive and targeted audience.

https://www.youtube.com/watch?v=qwKno-hnjik






Sunday, April 16, 2017

Resolution of legal issues / concerns impacting new funding and structure for HHSE

Good Afternoon to HHSE Friends and Followers - Happy Easter, Happy Passover and Happy Sunday!

As forecasted within the year-end filing  (period ended 12-31-2016) certain legal issues impacting the structure and receipt of substantial new funding for HHSE were resolved as of last Friday (April 14).

Additional details on this venture - and the substantial premium it delivers to HHSE shareholders - will be released pre-market tomorrow. 





Wednesday, March 29, 2017

Epic Action-Adventure "EXTRAORDINARY MISSION" - Opens April 7 from HHSE, CMC & Crimson Forest

Good Morning HHSE Friends & Followers -

The $30-mm (USD) production of the epic action-adventure, "EXTRAORDINARY MISSION" will be launched to theatres in the USA and Canada next weekend (April 7th) by Hannover House - in association with CMC Pictures and Crimson Forest.  The film was produced in Mandarin and will be released with English subtitles. The North American theatrical release will concentrate its marketing outreach primarily to appeal to the large markets of Chinese-origin populations (see release chart below) - although, there are precedents for similar productions that ultimately cross-over to mainstream movie audiences (e.g., "Crouching Tiger, Hidden Dragon" and "Hero" among others).

In selected markets - such as Monterrey Park, CA (Los Angeles metro), "EXTRAORDINARY MISSION" is expected to outperform all other major studio releases next weekend by a solid margin... due to the heavy concentration of Chinese immigrants and Mandarin speakers in that market.  Other major markets include New York, San Francisco, Toronto and Vancouver - as well as "single screen exclusive engagements" in other top 25 DMA markets as well as Honolulu.

"EXTRAORDINARY MISSION" is the first of three theatrical productions that HHSE has been hired to handle for theatrical, home video, V.O.D., S.V.O.D. and Television in North America from CMC Pictures - one of the largest media distributors in China.

Pictured below is a stack of the theatrical light-box posters that have shipped out to the applicable theatres. The Hannover House logo is in the lower right corner.

LINK TO TRAILER:

https://www.youtube.com/watch?v=nF_2eM3ZR5Y


LINK TO CHINESE CABLE MEDIA ADS (for USA & Canadian Markets):

https://www.youtube.com/watch?v=FjT0ePKPV38






Monday, March 27, 2017

RIDE UNITED - a motorcycle / moto-cross Epic from REDBULL - coming to Home Video in June!

Good evening HHSE Friends & Followers -

One of our hotter action-sports title is the epic adventure RIDE UNITED from Redbull and Four Oh Four Productions - coming to home video from HHSE this June.

Checkout the trailer:

https://www.youtube.com/watch?v=A3NYaQcxjp0

Hannover House released Redbull's "ON ANY SUNDAY: THE NEXT CHAPTER" to over 230 theatres in 2015, grossing over $500,000 at the box office - and we later assisted with the placement of home videos into Walmart, Best Buy, Target, and many other key, retail accounts.

We're excited to have the opportunity to fulfill video orders directly now with "RIDE UNITED" and plan to earn the vote-of-confidence bestowed with this new release.





The Vote of Confidence from the Production Community with HHSE

Greetings HHSE Friends & Followers - As we move into the final days before our major, corporate filings, we wanted to take this time to thank the many program suppliers and producers who have demonstrated their support in HHSE over the years - best evidenced in the repeat business (new titles) from the same licensors.  While we have had disputes in the past with some program suppliers - and either lost or simply discontinued the titles to avoid conflict - virtually every "notable" or commercially viable title lost has eventually come back to us later, after the producers realized the value of the HHSE / MEDALLION services and results.

Of the 18 new releases for HHSE in the past year, 12 of them were titles from licensors that the company had previously represented.  For the current year (ending 12-31-2017), of the titles that have been announced, six-out-of-ten are from pre-existing HHSE suppliers.

With respect to our catalog, below is a partial list of titles that were represented by Hannover House - then later "discontinued" or expired in term - then eventually came back again to HHSE for continued representation (listed alphabetically).

As the company grows in to bigger-budgeted, theatrical caliber films, the value of these ongoing relationships will enable HHSE-MEDALLION to continue its trajectory to becoming one of the Major Independent distributors.  We thank our producers, suppliers and shareholders for the opportunity to grow the business to a level that we can now emerge as a substantial entertainment and media company.

PARTIAL LIST OF RE-LICENSED TITLES

20,000 LEAGUES UNDER THE SEA
AHI ESTA EL DETALLE
AMERICAN FIGHTER PILOT
ANDO VOLANDO BAJO
AROUND THE WORLD IN 80 DAYS
AYE QUE TIEMPOS SENOR DON SIMON
CHRISTMAS IN THE CLOUDS
CIVIL WAR STORIES
CLASSIC COMEDIES
COLECION CLASSICA
COME AWAY HOME
CUANDOS LOS HIJOS SE VAN
DECEPTZ
EL RAPTO
FRIDA: NATURALIZA VIVA
FUTURE SHOCK
GRAND CHAMPION
I GOTTA GO
JOURNEY TO THE CENTER OF THE EARTH
LAST SAMURAI
LOS VAN VAN
MACARIO
MARTIAL ARTS PACK
ON LIFE AND ENLIGHTENMENT
PROJECT ELIMINATOR
RIGO TOVAR: UNA CONFESION TOTAL
SAMURAI ACTION PACK
SANTO Y BLUE DEMON
SAVAGE LAND
SOONER MAGIC
STRIKER
THE FUN PARK
THE MAGIC VOYAGE
THE WILD, WILD WEST
TREASURE ISLAND
TV CLASSICS PACK

Unfortunately, not every prior licensor and every previously released title remains attractive for HHSE to consider with respect to future business.  For instance, Fantastic Films, Origin Studios and Northbank Entertainment are suppliers that we would likely not be responsive to for any new release submissions.  We have found that some suppliers cannot be satisfied - and as HHSE grows, it's imperative that we work only with experienced suppliers with realistic expectations and reasonable demands.

Having a repeat supply of quality, new release titles from the same producers has been a great blessing for HHSE, and a great testimony to the support our suppliers have in the company.



Sunday, March 26, 2017

Don't bet against HHSE!

Greetings HHSE Friends and Followers. We're told by some longs that there is a filed lawsuit against HHSE / MEDALLION by the producers of UNION BOUND. As we have not been served and have not seen the lawsuit, it's not possible to fully respond.

However, the "high altitude" view of this topic is that an attempted legal action by UNION BOUND is frivolous AT WORST, or financially beneficial to us AT BEST.  You see, they never provided the required P&A to HHSE/MEDALLION, and instead left us stuck with covering over $200,000 of their bills. Their promised "specialty support" that they said would be provided by the "alt right" media never materialized - or if it did, it certainly did not deliver the $2,000 per screen results promised by Mike Davis, which promise was relayed to the major theatre chains as an inducement to provide theatre screens.

Despite HHSE signing the agreement, we never received back a countersigned copy - and we did not receive the $700,000 required for the release and specified in the agreement. If they are now deciding to acknowledge the existence of the agreement, one of our responses would be, "fine, where's the P&A money?"

The agreement also specifies that the court in the event of a dispute or legal action shall be the jurisdiction of the defendant - and we see no court filing made in Washington County, Arkansas.

As described in the past, some producers like to pick-and-choose certain items in a contract that fit their position while ignoring other key elements. The courts don't judge contracts that way, however. So we're certain that we will quickly prevail in having this absurd matter dismissed.

If you think we're wrong, remember that we also told shareholders on this blog that TCA was fully paid, FFI was moving to a satisfaction filing, and that the D.C. Photog case was ridiculous. If you want an accurate analysis of what is happening at HHSE, check HERE, don't check on stock-manipulator chat boards. We are legally obligated to express the truth as it exists at the time of posting. Are the chat board posters required to be truthful... or are they motivated to be deceptive?

On an unrelated note, this is an epic week for HHSE. Just watch!

Friday, March 24, 2017

Greetings from L.A. - it's a beautiful day for HHSE!

Good morning HHSE Friends & Followers - The L.A. Meetings this week went very well, and details will begin to be released in coordination with corporate filings and disclosures.

Meanwhile, some shareholders have asked us to comment on the favorable outcomes and closures of two litigation matters.

a).  With respect to FFI, the company has demonstrated full payment of the obligation, and is moving for a judicial declaration to discharge the matter.

b).  With respect to the litigation filed by the D.C. event photographer, as stated repeatedly in this blog and in disclosures, there was never any authorization granted for the filing of a copyright in the work-for-hire images taken at a HHSE Screening event.  The case has been formally dismissed by the court.

Cheers!  HHSE

Friday, March 17, 2017

The wait is over: Horror-Film Fans will see the official remake of BLOOD FEAST from Hannover House, in theatres April 28

Greetings HHSE Friends & Followers - Gore-meister director HERSCHELL GORDON LEWIS shocked his way into horror film legend with his 1963 gore classic, "BLOOD FEAST."  Now, more than 50-years later, producer EMSCH SCHNEIDER and director MARCEL WALZ have re-envisioned the film as bigger budget, European remake, shot in Paris last year.

Hannover House will release "BLOOD FEAST" to theatres in key markets across the USA beginning on Friday, April 28.  Most of the cast and principal production team will be on-hand for the USA Premiere screening on Tuesday, April 25 at the Chaplin Screening room at Raleigh Studios in Hollywood.  Home video and V.O.D. will follow in September.  Watch here for more news!

SEE ARTICLE BELOW FROM TODAY'S ON-LINE EDITION OF JOBLO.com
http://www.joblo.com/horror-movies/news/the-remake-of-blood-feast-is-coming-to-theatres-in-april-126

Blood Feast Robert Rusler Marcel Walz

It's been quite a while since we've heard anything about director Marcel Walz's remake of the 1963 H.G. Lewis cult classic BLOOD FEAST. Things have been pretty quiet on the BLOOD FEAST front ever since the remake's trailer was released online last June.  The silence has now been broken, as Walz shared some very good news with the folks over at Shock Till You Drop: a U.S. distribution deal has been secured and Medallion Releasing will be putting BLOOD FEAST out in theatres in the United States on April 28th.  The original film is known for being the first "splatter movie". The synopsis for Walz's take on the material goes like this: 
Fuad Ramses and his family have moved from the United States to France, where they run an American diner. Since business is not going too well, Fuad also works night shifts in a museum of ancient Egyptian culture. During these long lonely nights, he is repeatedly drawn to a statue representing the seductive ancient goddess ISHTAR. He becomes more and more allured by the goddess as she speaks to him in visions. Eventually he succumbs to her deadly charms. After this pivotal night, Fuad begins a new life, in which murder and cannibalism become his daily bread. He starts to prepare a ritual FEAST to honor his new mistress, a lavish affair dripping with BLOOD, organs, and intestines of human victims. As butchered bodies are heaped upon the Altar of Ishtar, Fuad slowly slips further into madness, until he is no more than the goddess’s puppet, who also thirsts for the blood of Fuad’s wife and daughter...
The remake stars Robert Rusler, Caroline Williams, Sophie Monk, and Sadie Katz.  I'm glad to hear some release news on this one, and am especially glad that the movie is coming out so soon. I'm looking forward to seeing what this modern BLOOD FEAST is like.

TRAILER LINK:  https://www.youtube.com/watch?v=AswhdZP_mlQ

Blood Feast Sophie Monk Marcel Walz


HHSE Licenses North American rights to KUNG FU COWBOYS

Greetings HHSE Friends & Followers - Hannover House, Inc. has signed a licensing agreement with Crimson Forest Entertainment Group for the North American distribution rights to the epic western, KUNG FU COWBOYS.  This is an English-language production filming this summer... two significant American Stars are expected (with offers currently out to their agents).


KUNG FU COWBOYS – is a Western based on racial and immigration conflicts following the passage of the “Chinese Exclusion Act of 1882” which prohibited Chinese immigration into America, and turned many citizens against the Chinese residents in general. Forced to protect their lives and families, group of immigrant workers pit their martial arts skills against those attempting to take away their rights and their property.  A major cast is expected for this August, 2017 shoot under the direction of Jonathan Lim.


Under the terms of the agreement, Hannover House / Medallion have committed to an initial North American theatrical release onto not less than four-hundred (400) screens... making this film, by far, the largest theatrical release to date for the company.
Check back for more updates on casting, shooting and release activities...