Hipgnosis Songs Fund

12 July 2020 - Press release

HIPGNOSIS SONGS FUND LIMITED (the “Company” or “Hipgnosis”)

 

RESULT OF C SHARE ISSUE

Further to its announcement on 2 July 2020, Hipgnosis Songs Fund Limited (“Hipgnosis”), the first and only UK investment company offering investors a pure-play exposure to songs and associated intellectual property rights, and its Investment Adviser, The Family (Music) Limited, are pleased to announce that as a result of significant demand from existing and new investors the Placing has been oversubscribed, exceeding the target amount of £200 million. 

Accordingly, the Board has resolved to increase the gross proceeds of the Issue to approximately £236.4 million, making it Hipgnosis’ biggest equity raise to date. As the Investment Adviser, The Family (Music) Limited, is in active discussions on a pipeline of Catalogues with an acquisition value of over £1bn, the Company continues to expect to deploy the net proceeds of the Issue within three months.

The Placing has now closed and gross proceeds of approximately £233.4 million have been raised at a price of 100 pence per C Share pursuant to the Placing Programme described in the Prospectus published by the Company on 27 September 2019. In addition, further gross proceeds of approximately £3.0 million have been raised at a price of 100 pence per C Share pursuant to the PrimaryBid Offer.

Merck Mercuriadis, Founder of Hipgnosis Songs Fund Limited and The Family (Music) Limited, said:

“Our mantra is that proven songs produce predictable and reliable income and are a highly investable uncorrelated asset class that can rival gold. I’m very grateful for the incomparable support we have had from our great institutional investors from day 1 and delighted that they are now,  with us having become one of the biggest yielders on the FTSE 250,  joined with significant participation from the retail sector. This is our biggest fundraise to date, and the biggest fundraise by a LSE listed investment trust since the COVID-19 lockdown, which speaks volumes for the financial community’s recognition of Songs as an asset class. In line with our current performance we will do our utmost to continue to deliver strong results for our investors by buying extraordinarily successful proven songs by culturally important artists and managing them with great responsibility. At the same time we will use the influence of our great songs and financial wherewithal to bring reform to the way the songwriter is remunerated. The songwriter is unjustly at the bottom of the traditional music business economic equation, our intention is to take the songwriter to the top!”

Directors' participation in the Placing 

The following Directors have subscribed for new C Shares pursuant to the Placing as outlined below:

Director	No. of C Shares being subscribed pursuant to the Placing	Resulting holding of Ordinary Shares and C Shares
Sylvia Coleman	6,000	31,000
Andrew Wilkinson	7,500	58,962

 

Admission and Total Voting Rights

Applications have been made for 233,446,307 Placing Shares and 2,954,205 C Shares to be issued pursuant to the PrimaryBid Offer (“PrimaryBid Shares”) to be admitted to the premium listing segment of the Official List and to trading on the London Stock Exchange's main market for listed securities ("Admission").  It is expected that Admission will become effective and that dealings will commence in the Placing Shares at 8.00 a.m. on 15 July 2020 and in the PrimaryBid Shares at 8.00 a.m. on 16 July 2020.

Following Admission of the new C Shares issued pursuant to the Placing, expected on 15 July 2020, the Company will have 615,851,887 Ordinary Shares and 233,446,307 C Shares in issue. The C Shares carry the right to receive notice of, attend and vote at general meetings of the Company. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights of the Company will be 849,028,194 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Following Admission of the new C Shares issued pursuant to the PrimaryBid Offer, expected on 16 July 2020, the Company will have 615,851,887 Ordinary Shares and 236,400,512 C Shares in issue. The C Shares carry the right to receive notice of, attend and vote at general meetings of the Company. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights of the Company will be 852,252,399 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Capitalised terms used in this announcement shall, unless defined in this announcement or unless the context provides otherwise, bear the same meaning ascribed to such terms in the announcement made by the Company on 2 July 2020 to announce the launch of the Placing.