Hipgnosis Songs Fund Limited (“Hipgnosis” or the “Company”)

Result of Issue

Further to its announcement on 21 September 2020, Hipgnosis Songs Fund Limited, the first and only UK investment company offering investors a pure-play exposure to songs and associated musical intellectual property rights, and its Investment Adviser, The Family (Music) Limited, are pleased to announce that the Company has successfully raised total gross proceeds of £190 million.

Merck Mercuriadis, Founder of Hipgnosis Songs Fund Limited and The Family (Music) Limited, said:
"To raise £190 million in 72 hours and £420 million in two months during a pandemic is the greatest endorsement from the investment community for Hipgnosis and proven songs as an asset class. The uncorrelated returns songs provide have been very important to our shareholders during these difficult times and have only reinforced the belief in our thesis which has now become reality. We have made a tremendous impact on the songwriting community through our acquisitions and by pushing the agenda to improve the songwriter’s position in the economic equation. This has helped make us the buyer and custodian of choice amongst songwriters who are constantly providing us with exciting opportunities for pipeline. We will carry on with the course we have set for the last two plus years that has made us a FTSE 250 company. We will deploy quickly in the finest songs, we will actively manage them better than before and provide our great investors with a strong return all the while pushing forward the agenda of the songwriter.”

Result of Issue
In total the Company has raised gross proceeds of £190 million at a price of 116p per Ordinary Share pursuant to the Issue. The Placing has now closed and gross proceeds of approximately £186.4 million have been raised pursuant to the Placing Programme described in the Prospectus published by the Company on 27 September 2019. In addition, further gross proceeds of £3.6 million have been raised pursuant to the PrimaryBid Offer.

Directors’ and Investment Adviser’s participation in the Placing
The following Directors, as well as Merck Mercuriadis (Founder of Hipgnosis and CEO of the Investment Adviser, The Family (Music) Limited) and Chris Helm (CFO of the Investment Adviser) have subscribed for new Ordinary Shares pursuant to the Placing as outlined below:

¹ Including shares owned by The Family (Music) Limited

Admission and Total Voting Rights
Applications have been made for 163,793,103 Ordinary 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 at 8.00 a.m. on 25 September 2020.

Following Admission, the Company will have 797,254,294 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 1,033,654,806 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 21 September 2020 to announce the launch of the Placing.