HHSE Hannover House Inc (PK)

Other Events

a). The Board of Directors of Hannover House, Inc. (“Company”) have approved the engagement of the law firm of Hinds & Shankman (Los Angeles) to serve as plaintiff’s counsel in a lawsuit to be filed by Company against Blackbridge Capital, LLC (“Blackbridge”) and Standard Registrar and Transfer Co., Inc. (“SRTC”). The purpose of the lawsuit is to compel the return of approximately 9.8-million shares of Company’s stock that was released by SRTC to Blackbridge without Company’s approval and without a legal basis for such an issuance or release. Company has served notice to both Blackbridge and SRTC demanding the return to treasury of the shares that were issued, but neither has complied.

b). The Board of Directors of Hannover House, Inc. (“Company”) have approved the engagement of the law firm of George B. Morton & Associates (Fayetteville, AR), to file a civil action in Federal District Court against defendants Joseph A. Chaskin, John Zehr, Mickey Britt, Thomas Evertts and other alias defendants, co-conspirators and alter-egos utilized by these defendants in a criminal scheme to manipulate the market for the Company’s stock. The lawsuit will seek damages of $15-million dollars, or such additional amounts as the court may deem appropriate, to be distributed to Shareholders under a damages formula. The Company will continue to work with the FBI and the US Attorney’s office to assist with their separate investigations into the criminal violations of the defendants. The Company will reserve the option of naming additional defendants to this action.

c). The Company’s Board of Directors has approved the second cash installment payment to TCA Global Master Fund (for “October” 2015). The final issuance of debt-conversion shares to TCA through Magna Investments, which was initiated on July 2, 2015 and allowed to survive under the cash-retirement agreement with TCA has been completed through three conversion actions, each consisting of approximately 5.8-mm shares. Company does not anticipate any additional share conversion issuances for the benefit of TCA and the balance still due to TCA from Company as ongoing monthly installments from the Company’s cash flow are expected to fully retire the balance of this obligation.

d). The Company’s Board of Directors has approved a payment plan to retire the P&A Loan balances due to JoLynn Anderson and Dennis Anderson in cash and through quarterly installments funded through the Company’s cash flow. Company does not anticipate the need for any share conversion activities to deal with this obligation, or any other obligation as currently situated within the scope of operations and relationship management.