Hannover House unveils up to $100 million financing plan for film deals

Hannover House says it has created a financing structure that could support up to $100 million in off-balance-sheet production and acquisition deals. The company is moving into two major projects and several smaller films as it tries to scale up its independent studio business.

Why it matters: - Hannover House is trying to use a new credit-enhancement structure to fund bigger films and acquisitions without putting the full burden on its balance sheet. - The company says the tool could help it compete with larger independent studios that can offer bankable guarantees, advances and production money. - Hannover House says the strategy could lift annual revenue above $250 million.

What happened: - Hannover House, a 33-year-old independent entertainment and media company traded on OTC Markets under HHSE, announced a financing tool for higher-end productions and acquisitions. - The company says the structure can support up to $100 million in high-value properties. - Hannover House says it is immediately moving into two high-profile productions and about six smaller films and ventures. - The combined value of the projects already under contract is $26 million. - The company says additional film announcements are planned over the next three weeks.

The details: - The major projects already in motion are the sci-fi action adventure Tempus Porta and the historic drama November 17. - Mid-level projects include Modern Antiquities, Indian Territory, The Meat Man and Shadowland. - Hannover House also plans to allocate funding to a production studio facility in Arkansas. - Hannover House plans to fund the launch of its indie-film streaming service, MyFlix. - The financing is being supported by investors and lenders providing production funding secured against Hannover House distribution contracts and collateral structures. - Acquisition consultation and production legal services are being handled in part by veteran producer and attorney Jere Hausfater, formerly senior vice president at Disney.

Between the lines: - Hannover House is repositioning away from the low-budget DVD-era model that built the company early on. - Eric Parkinson said the decline in DVD sales forced the company to focus on star-driven, higher-end features and new financing structures. - The company appears to be using the success of its Wildfire rollout as proof that the model can work for larger productions and distribution deals. - That pitch is aimed at investors, lenders and potential production partners looking for a distributor with collateral-backed financing capacity.

What's next: - Hannover House plans more announcements over the next three weeks tied to productions funded in whole or in part by outside investors and lenders. - The company expects the new financing approach to expand its production slate and distribution pipeline. - Hannover House is also pushing ahead with its Arkansas studio facility and MyFlix streaming launch. - Parkinson said the company wants to build into a major independent studio on par with A24, Neon and Briarcliff Entertainment. - For more information, see the company's announcement and the video post.