$HHSE: Mandatory disclosure of Material-Level Events
Monday, September 22, 2025
https://hannoverhousemovies.blogspot.com/2025...level.html
Greetings HHSE Friends & Followers - A few weeks ago, HHSE disclosed that we had entered into a letter of intent (LOI) for a credit-enhancement bond to support a bank credit line of $3.5-million dollars. HHSE Securities counsel advised that we had a legal obligation to make this disclosure within five business days - even if there were still weeks / months of work to occur before the bank funding occurs. Under public-company securities laws and practices, events of a "material" level nature must be disclosed to shareholders. In this case, proceeding with this funding deal means that we cannot proceed with an alternative form of bank funding until it's funded or until it's abandoned. While we have no intention of seeking alternative bank deals, as long as this particular credit-enhancement venture is in motion, we are bound. Conversely, if something transpired that resulted in a withdrawal of this venture, HHSE would have a mandatory 5-day disclosure for that news as well.
Events of a "material" nature depend on the issuer. While this credit line is a HUGE step for HHSE (and therefore a "material event"
, it would be a daily interest rounding error for APPLE, and therefore NOT a material level event relative to the size of that company.
As of Sept. 22, 2025, we do not foresee any obstacles to meeting the bank requirements . There are issues with the credit enhancement bond and how the fee for issuance will be paid. But these are being addressed, and seem to be on a track to resolution. If we cannot resolve this issue (or any others), we would have an obligation to promptly disclose this to our shareholders.
Some shareholders have asked WHY Hannover House has not pursued "traditional bank financing" lines of credit in the past? The primary obstacle has been the existence of three "foreign judgments" against the company - which (even though settled and performing) - cast a shadow over the company's ability to get an unsecured line-of-credit until "satisfaction of judgments" are filed with the applicable courts. Accordingly, a credit-enhanced bank line is a good solution for HHSE, even with the additional costs for the surety bond.
Lots of exciting stuff in motion for HHSE. If this were not the case, we would be required to disclose as such!
Monday, September 22, 2025
https://hannoverhousemovies.blogspot.com/2025...level.html
Greetings HHSE Friends & Followers - A few weeks ago, HHSE disclosed that we had entered into a letter of intent (LOI) for a credit-enhancement bond to support a bank credit line of $3.5-million dollars. HHSE Securities counsel advised that we had a legal obligation to make this disclosure within five business days - even if there were still weeks / months of work to occur before the bank funding occurs. Under public-company securities laws and practices, events of a "material" level nature must be disclosed to shareholders. In this case, proceeding with this funding deal means that we cannot proceed with an alternative form of bank funding until it's funded or until it's abandoned. While we have no intention of seeking alternative bank deals, as long as this particular credit-enhancement venture is in motion, we are bound. Conversely, if something transpired that resulted in a withdrawal of this venture, HHSE would have a mandatory 5-day disclosure for that news as well.
Events of a "material" nature depend on the issuer. While this credit line is a HUGE step for HHSE (and therefore a "material event"
, it would be a daily interest rounding error for APPLE, and therefore NOT a material level event relative to the size of that company. As of Sept. 22, 2025, we do not foresee any obstacles to meeting the bank requirements . There are issues with the credit enhancement bond and how the fee for issuance will be paid. But these are being addressed, and seem to be on a track to resolution. If we cannot resolve this issue (or any others), we would have an obligation to promptly disclose this to our shareholders.
Some shareholders have asked WHY Hannover House has not pursued "traditional bank financing" lines of credit in the past? The primary obstacle has been the existence of three "foreign judgments" against the company - which (even though settled and performing) - cast a shadow over the company's ability to get an unsecured line-of-credit until "satisfaction of judgments" are filed with the applicable courts. Accordingly, a credit-enhanced bank line is a good solution for HHSE, even with the additional costs for the surety bond.
Lots of exciting stuff in motion for HHSE. If this were not the case, we would be required to disclose as such!
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