LOS ANGELES, CA / ACCESSWIRE / June 22, 2017 / The recent merger of operations for Hannover House, Inc. (OTC PINK: HHSE) with Crimson Forest Entertainment Group, Inc. (OTC PINK: CRIM) has sparked a significant increase in a wide range of activities, including new title acquisitions, original feature film productions and an enhanced releasing slate, reports Chairman Jon Lim. The more aggressive posture for the combined companies is expected to have a significant impact to the company's revenues for 2017, and set the stage for major growth in 2018.
"We are taking the steps and making the investment to build our company into a significant distributor for the North American market, and feel that we can become the preferred home for many independent producers and program suppliers," said Lim. "As the major studios move further away from limited releases and specialty programming, we see a major void in the marketplace that is not being addressed. Well-made independent films, with strong stories, solid-casts and commercial elements are being ignored by the major studios in favor of super-hero films and bombastic tentpoles. Audiences want more, as evidenced by recent Academy and Golden Globe winning independent films. We believe that the Hannover House - Crimson Forest Entertainment Group model has the opportunity to excel in the arena of quality films under $10-million in cost," he concluded.
On the feature production front, the company's combined 2017 slate represents an investment of nearly $20-million dollars, led by the current action-western, "Kung Fu Cowboys" (directed by Jon Lim), along with "Delirium" (directed by Dean Jones), "The Final Minute" (directed by Rick Walker) along with three other features. Despite the company's target to limit individual production costs to under $10-million, the total production investment for additional titles set for the company's 2018 slate is already more than $50-million dollars, due to the number of films set to shoot.
On the distribution side, theatrical release activities will see a significant expansion with two titles this summer ("Where's The Dragon?" and "Blood Feast"), each achieving nationwide breaks through Regal Entertainment Group. Hannover House and Crimson Forest will be announcing title specifics in the next two weeks for three more nationally-released theatrical titles set for September and October. These key theatrical titles will serve as the locomotives to drive the company's home video, V.O.D. and Television activities during Q4 of 2017 and into early 2018, which will be supplemented with four additional theatrical titles (limited release) and eight additional direct-to-video releases.
The company's video-on-demand streaming portal, VODWIZ, INC., will also see a significant ramp-up in activities in preparation for a major consumer launch of the site this calendar year. The VODWIZ concept was developed several years ago by Hannover House as a one-stop portal for consumers to access and stream thousands of independent movies, many of which are unavailable through other streaming platforms. The consumer launch of VODWIZ was delayed due to the time and costs required to master and configure the programming, including high-definition versions, closed captioning and delivery infrastructures. With new funding available as a result of the merger with Crimson Forest, the company can now make the capital investment to complete the mastering process and move into a consumer launch of the service. More than 20 different supplier studios have partnered with VODWIZ, collectively representing over 4,500 titles available to the site for streaming. Consumers accessing VODWIZ will have the option of streaming films on a per-transaction rental basis, or signing up for a monthly subscription service for unlimited viewing of participating titles.
Crimson Forest is working with a consortium of well-established media companies out of China, and has accessed these relationships to obtain production presales and international distribution rights. Previously announced venture partners include China Film Alliance, IQIYI, Shanghai Holdaing Culture Co. and CMC Pictures. Crimson Forest operates an international investment office out of Shanghai, China, to coordinate these activities.
Although the operational merger of Hannover House and Crimson Forest is completed, the stock-for-stock swap element of the merger is still awaiting final valuation approval and implementation. Under the swap agreement, as presently structured, public shareholders of Hannover House, Inc. will receive shares in Crimson Forest at a valuation that represents a significant premium over current stock trading levels. The combined company's ticker-symbol will be rebranded in a nearly-simultaneous transaction. Operational management for the combined company will be Jon Lim (Chairman), Eric Parkinson (CEO), Fred Shefte (President) and Tom Sims (VP Sales, and President of VODWIZ). Three additional outside board members will also be brought into the combined company, promptly following the stock-for-stock swap. Distribution offices for HHSE-Crimson will continue to operate out of N.W. Arkansas, near the company's primary home video retailer, Walmart Stores, Inc. Crimson will also operate a production office out of West Hollywood, California, as well as the existing offices for international finance out of Shanghai, China.
Hannover House - Crimson Forest enjoyed a robust reception at the recently completed Cannes Film Festival and Marche du Film, including the acquisition of ten new titles for North American release. The original feature production of "Shimmer," with U.K.'s Silver Lining Productions was the company's first announcement from the Cannes market.
Hannover House was founded in 1993 and has been operating continuously since that date in the field of book publishing. Hannover House added DVD products in 2002, and the company has since built a film library of more than 400 titles, with cumulative unit sales of over 25-million DVD discs. Crimson Forest was established five years ago, initially to accommodate the production of the Jon Lim directed feature film, "PALI ROAD." However, the company later expanded into acquisition and distribution activities, in response to evolving market opportunities.
FOR MORE INFORMATION CONTACT:
Maryevelyn Jones
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SOURCE: Hannover House, Inc.