I see. I emailed Eric about it and he told me the same thing and clarified it for me.  He also put an update on facebook so that everyone was fully aware of the situation.  A great situation to be in I might add.

I'm out of posts until happy hour on iHub or I would post the facebook news so if anyone wants to relay it be my guest.

From the HHSE Facebook page

Hannover House Update for clarity: for those who did not read the May 8 disclosure filing, Hannover House has an "either / or" deal for this film. Either the producers pay us a substantial fee to release our distribution rights, or we end up as USA Distributor. We win either way, and either way, wish the producers the best of luck and continued success with the casting and production!