Hannover House, Inc.

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Hannover House on track for rapid growth in Revenues, Profits and Stock Support

Sep 24, 2014

OTC Disclosure & News Service

New York, NY -

The successful launch of a multi-studio distribution pact and several other key ventures has independent media company Hannover House, Inc. (OTC: HHSE) poised for rapid growth, said managers in the company's first newsletter to shareholders.  Three major benchmark achievements are already in place with four others set for the coming weeks.  Bottom line say managers, is that revenues are expected to more than triple, and shareholder value should soar by a factor of 10.


The shareholder newsletter is the first from Hannover House, and is planned for each upcoming quarter, to be sent via US Mail to confirmed shareholders of record.  Issues addressed in the newsletter include:


1).  New Multi-Studio Distribution Pacts Under the direction of recently hired VP of Sales, Tom Sims (a top entertainment industry executive), Hannover House has entered into distribution or sales agency pacts with ten outside studios for the representation of their video titles to major retailers and mass merchants. The first titles under this pact are already in release, with "American Justice" (Paseo Miramar Studios) poised to be the highest grossing video of 2014 for Hannover House.  Prior to joining Hannover House, Sims was the Video Buyer for Walmart at Anderson Merchandisers, and later established similar multi-studio ventures at Vivendi / Universal Music Group and Allegro Music Group.  The Vivendi studio venture was generating annual sales of more than $150-million under the structure implemented by Sims.


2).  Enhanced Theatrical Release Activities In order to elevate the stature and revenue potential of Hannover releases, the company is expanding its presence with national theatrical releases.  The first major release is a partnership with Redbull Media House for the Nov. 7th launch of "On Any Sunday: The Next Chapter" to more than 250 theatres.  Based on the media and promotional plans in place with Redbull, Hannover House forecasts that the title will be the company's highest grossing theatrical and video title of all time.  Three other theatrical releases are slated to follow the momentum that Hannover expects to generate with Redbull and the "On Any Sunday" release. 


3).  Proprietary Video-On-Demand Venture Hannover House has pacted with a total of twelve studio suppliers for its exciting new VODwiz streaming site.  With over 6,000 titles now available to VODwiz, Hannover House feels that the venture's launch to consumers can be impressive and very successful.  VODwiz will offer consumers the option to stream popular as well as hard-to-find feature films and television programs directly to their homes or internet enabled mobile devices.  Pricing will range from only $.99 per movie to studio prices comparable to (but more competitive than) I-Tunes, On-Demand and Amazon.  The company's original goal was to offer 2,500 titles, but the response from outside suppliers exceeded Hannover's projections.  Industry insiders are projecting that VODwiz will become a destination website and IPTV streaming portal.  Specific launch details will be announced in a separate release.


4).  Major Productions Fuel Foreign Sales, Balance Sheet and Production Revenues Hannover's international sales and marketing venture, Medallion Releasing, was launched in May at the Cannes Film Festival, and is handling the production and release of eight major feature films.  These higher-profile titles are expected to become the tent-pole releases to drive Hannover's schedule in 2015, as well as contribute the greatest amount to revenues and profits.  Announced major titles include "Mother Goose: Journey To Utopia", "The Legend of Belle Starr", "Shadow Vision", "Clown Town", "Bridge to Redemption" and "The Unwelcome."  Under Medallion Releasing, Hannover House is accessing international presales, state and federal tax incentives and bank financing to facilitate the production funding.  The initial slate represents a production investment of over $20-million, with conservative revenue forecasts in the range of $35-to-$50-million for Hannover House.


5).  Corporate Governance & Filings The HHSE Shareholder Newsletter describes the company's recently completed Form 10 Registration Statement and forthcoming filing with the Securities & Exchange Commission.  Hannover House management feels that this key new filing will enable the company to "uplist" its stock exchange status within the next few weeks, and improve investor access to buy the stock.


6)  Stock Price Analysis The Newsletter describes management's analysis of the artificially low price for Hannover House stock at present, and the factors that have created a substantial opportunity for rapid PPS growth.  The company's growing revenues, new actvities and the industry P/E averages suggest a stock value of more than 10-X the current pricing.  HHSE management feels the stock price has been unreasonably impacted in the past few months by modest share dilutions of approximately 6% which were announced last December. "There's no logical basis for such a tiny dilution of shares to justify an artificial beat-down of the HHSE price," says the newsletter.  The new activities and achievements should easily overpower any PPS suppression, making the current pricing into a tremendous growth opportunity, say managers.


7).  New Staff Introductions The shareholder newsletter also introduces five new staffers to HHSE shareholders, all of whom are working out of the company's primary offices and warehouse in Springdale, Arkansas (located nearby to the world's largest DVD and Blu-Ray retailer, Walmart Stores, Inc.).


Hannover House was established in 1993 as a book publisher, with a DVD product line added in 2002.  During the past 12 years, Hannover House has released over 150 titles to the home video market in North America, and has added theatrical, television and video-on-demand activities over the years as title demands would merit.  The company's film and television library now has over 250 titles.


In addition to the core release activities of Hannover House in the entertainment packaged goods market, the company has successfully expanded into the international marketplace, with a robust launch and booth presence this year at the Cannes Film Festival and Marche Du Film, and a booth presence at the upcoming American Film Market in Santa Monica. The company's proprietary video-on-demand portal, VODwiz.com, will launch to consumers in the next few weeks, expanding beyond the beta-test site and rolling out with more than 2,500 titles (and up to 6,000+ titles), most of which are being provided through twelve participating supplier studios. The company's international sales and financing activities are being handled through the recently launched Medallion International Pictures / Medallion Releasing division, which has been designed by Hannover House as a financing vehicle and releasing label for higher-end, theatrical programming. The VODwiz website and IPTV venture has been described by the Media Analyst Group as "the Netflix of independent studios" based on the business model of offering movies for streaming both under a "pay-per-transaction" basis, as well as through a monthly subscription model.


Existing, key retail accounts for Hannover House consumer packaged products include Walmart Stores, Inc., Redbox, Netflix, Barnes & Noble and thousands of independent video retailers, schools, libraries and booksellers. The company also sells entertainment products to a wide range of internet sites, and services most major video-on-demand portals. The company has been profitable for each of the past eighteen quarters, and feels that the 2014 and 2015 new activities will significantly increase both revenues and bottom line results.  Hannover House stock is currently traded on the OTC Markets under ticker symbol: HHSE.



This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.

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