NEW YORK, Feb. 21, 2012 /PRNewswire/ -- Hannover
House, Inc., the recently rebranded corporate name for Target
Development Group, Inc., (Pinksheets: TDGI) has established
unusually high standards for its operations as a public company,
says company President D. Frederick
Shefte. These policies, when factored in with
consistent profitability, reporting transparency and minimal
dilution over the past two years, make the company's stock a
tremendous value, according to Shefte and company CEO Eric Parkinson.
"We disagree with the manner in which many OTC market companies
conduct their operations," said Shefte. "Most show no
hesitancy to dramatically dilute the shareholders through
relentless issues of equity, in effect treating the shareholders
like an ATM. In our first two years since taking managerial
control of TDGI, the total net increase of shares in issue has been
only 1.4%. We feel that our reluctance to issue shares underscores
our ongoing commitment to minimize the dilution of our
shareholders. As substantial and majority shareholders of the
Company, we are constantly seeking to maximize profits on a per
share basis," he continued.
One of the first corporate actions taken in 2010 was a Board of
Directors resolution to reduce the total Authorized Shares by
1300%, further supporting the company's shareholder-friendly
commitment. In January 2010, at
the time that the management control of Target Development Group,
Inc. was assumed by Hannover House executives Eric Parkinson and D.
Frederick Shefte, the total of Shares Issued (or reserved)
was 471,206,692-million. In January, 2012, after two years of
operations by the Hannover House managers, the total of Shares
Issued (or reserved) was 477,995,139, an increase of only 6,788,447
(1.4%). In January, 2010, the total of authorized shares
under the company's corporate structure was 10-billion. Hannover
House managers reduced this number to the far more reasonable
allotment of 750-million total shares (whether issued or authorized
and held in company treasury).
The company is also one of a rare few, if not the only, company
that has both a "penalty" program for executives as well as the
more customary "bonus" structure.
"If the top managers of companies are to be rewarded for
exemplary performance," said CEO Eric
Parkinson, "why shouldn't the converse be true? We
stand behind our responsibilities as managers of Hannover House,
and have shown our willingness to forfeit shares under penalty if
we do not meet specific thresholds. We believe that good
performance by managers should be rewarded, and bad performance
should be punished. We cannot think of a more equitable
policy that places the shareholders first."
During the first two years under Hannover House management, the
company has also delivered consistent profitability, a multimillion
dollar increase in shareholder equity and a substantial decrease in
debt. Ironically, the company's stock price is currently
trading at the lowest end of the entertainment industry sector,
with value pricing reflecting a Price-Earnings ratio of only 6.4-X
compared to an industry average of 21-X. With the company's
new venture into consumer-direct Video-On-Demand streaming this
summer (VODwiz.com), management feels that the stock is underpriced
by a more significant factor than the 3-X value suggested by the
simple Price-Earnings ratio.
"The market has not been responding logically to the value of
our company," said Parkinson. "Shareholders have been
combating a campaign of intentionally false information from a
small group of day-traders hoping to profit from daily swings in
our stock price. We are taking legal steps to stop such share
price manipulation efforts, while at the same time, expanding the
company's market presence through enhanced visibility and
information clarity."
The Company has completed an application with FINRA for the
rebranding of the share ticker symbol from the current "TDGI" to
the new "HHSE." The Company has also taken steps to engage a
major market-maker for the stock, in anticipation of the completion
of the financial audits for the years ending 2010 and 2011.
In audit-related news, the company has engaged a full-time Audit
Control Manager, Lisa Purkayastha,
to implement new tracking and reporting systems to speed up future
compliance issues.
"Fred and I are committed to the long-term success of Hannover
House," said Parkinson. "We have been responsive to our
shareholders, and have implemented policies to protect the
shareholders' investment in the company. We believe that
sustainable value will result from these policies as well as from
our consistently positive performance results."
Hannover House was established in 1993 as an independent book
publishing house. The company added DVD product lines in
2002, and expanded into theatrical releases in 2008. The
company's current release slate includes new release videos for
every month during 2012, along with six theatrical titles already
disclosed, and ten new items pending official announcement.
Current videos in release include "Turtle: The Incredible Journey,"
"All's Faire In Love" and "Boggy Creek: The Legend is True" (all of
which are available at Wal-Mart stores and other major retail
chains). Upcoming releases for the company include "Humans
Vs. Zombies," "The Weather Station" and "Toys in the Attic"
starring Academy Award winner Forest
Whitaker, along with Joan
Cusack, Vivian Schilling and
Cary Elwes.
PRESS & MEDIA: FOR MORE INFORMATION CONTACT
Lauren Sterling, 479-751-4500 /
Lauren@HannoverHouse.com
SOURCE Target Development Group, Inc.