5). What's the update on "Mother Goose"? How c
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5). What's the update on "Mother Goose"? How can HHSE finance a $12-mm production when the Company is otherwise tightly managing cash flow?
A: There's a lot of exciting activities happening with this production, from distribution partnerships and presales, to an amazing cast of box-office superstars. HHSE is not "financing" the movie with existing credit lines, cash flow or debt. The film is being financed primarily through a bank structure that includes a direct assignment of international presales, tax incentives, rebates and a senior lien on the asset and revenue streams. The announcement of distribution partners will be withheld until its deemed most beneficial for the partners (perhaps timed for a major festival or market, or timed to correspond with a theatrical and network broadcast debut of the first teaser-trailer). The announcement of cast members will be subject to the approval of the agents, managers and publicists for the principal stars, as required.
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