Indie Studio continues to build catalog revenues with multipack DVD assortments
Los Angeles, CA, June 6, 2012 (GLOBE NEWSWIRE) — Hannover House, inc. (Pinksheets: HHSE) will continue its expanded activity in catalog sales and multipacks with the August 14 release of the “Family Movie Night” 4-pack. The DVD assortment contains four, full-length family films, including “Grand Champion”, “Joyriders”, “Savage Land” and “Come Away Home” priced at only $9.95 suggested retail, with wholesale pricing to enable major retailers such as Wal-Mart and Best Buy to sell the item for as low as $5.00 to consumers.
Thematic multipack DVDs have become a hot selling category for major retailers, and have proven to be capable of selling hundreds-of-thousands of units. The “Family Movie Night” package features four of the best selling family movies from the Hannover House catalog. Accordingly, the company expects consumer response to be significant.
“Grand Champion” is rated “G” and stars Emma Roberts and Joey Lauren Adams. The film also features notable roles by Bruce Willis, Julia Roberts and country music superstar George Strait. It was released to theatres in 2004, and launched initially to the home video market by Hannover House in January, 2005. “Come Away Home” is rated “PG” and stars Lea Thompson, Thomas Gibson, Raul Dooley and Martin Mull. The film was released to theatres in 2007 and released onto DVD by Hannover House in January, 2008. “Savage Land” is rated “PG” and stars Graham Greene, Corbin Bernsen and Charlotte Ross. The 1994 production was produced by Hannover House CEO Eric Parkinson and based on his original story. The film has sold over 500,000 video units, and was noted by Video Store Magazine as being one of the top 10 most profitable releases (ROI) of 1994 for video store owners. “Joyriders” was a 1999 production by notable producers Midge Sanford and Sarah Pillsbury (“Desperately Seeking Susan”, “Eight Men Out”), starring Martin Landau and Kris Kristopherson. The title was initially released onto DVD by Hannover House in 2006.
In other corporate news, following meetings over the last week in Los Angeles, Hannover House has agreed to proceed with a bank financing line-of-credit from a major, California based institution. This bank credit line will be utilized to fund current and upcoming marketing costs for Hannover House releases, along with funds for general operations and payables management. The company had recently been considering various forms of financing, including a private-equity loan (with stock shares as collateral) and a general debt conversion venture. Due to a variety of factors, including shareholder feedback and a recent drop in the company’s stock share price, the bank credit facility was deemed to be far more beneficial at this time than the private-equity proposal or debt conversion. The Hannover House managers believe that the recent drop in the stock share price has been caused by uncertainty in how the company will resolve its growth issues and cash needs, which have been exacerbated recently by significant increases in the company’s DVD and Blu-Ray sales (which have created a short-term cash demand for the manufacture and shipment of merchandise). As the enhanced sales currently occurring mature into collections, Hannover House will be better positioned to continue its policy of reinvesting revenues into building sales and the asset base. The company will continue to seek shareholder feedback on such issues. Specific details of the bank financing line will be released upon approval of the institution.
SAFE HARBOR STATEMENT
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. The sales forecasts prepared by management represent the company’s reasonable expectations for performance by titles and media, but in no way constitute a representation, warranty or guarantee that these specific sales and revenue achievements will be achieved.
CONTACT: Eric Parkinson, 818-481-5277 / HannoverHouse@aol.com
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