REG - Hipgnosis Songs Fund - Strategic Review and Company Update

Hipgnosis Songs FundAnnouncement

23/11/2023 07:00

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RNS Number : 3938U  Hipgnosis Songs Fund Limited  23 November 2023

LEI:         213800XJIPNDVKXMOC11

 23 November 2023

 

Hipgnosis Songs Fund Limited

("Hipgnosis" or the "Company")

 

Strategic Review and Company Update

 

Further to the vote against the Company continuing its business as a
closed-ended investment company at the Company's Annual General Meeting held
on 26 October 2023, the Board announces an update on the strategic review (the
"Strategic Review").

 

Update on the Strategic Review

As part of the Strategic Review, the Board intends to appoint independent
advisers to conduct due diligence on the Company's assets.

 

Completion of this due diligence will provide a strong knowledge base from
which the Board will commence a process of identifying and bringing forward
alternative proposals for the future of the Company.

 

During this period, the Board has requested that Hipgnosis Song Management
Limited, the Company's Investment Adviser ("Investment Adviser"), proposes
alternative terms for their future investment advisory arrangements to the
Company.

 

Audit Tender

The Company is currently undertaking an audit tender process for the 31 March
2024 audit. PwC have indicated they will not be participating in the tender.
The Company will confirm the new auditor in due course.

 

Service of Claim

Further to the disclosure in the 2023 Annual Report, on page 100, Hipgnosis
Music Limited (in liquidation since March 2018) ("Hipgnosis Music Limited")
has served proceedings against Mr Mercuriadis, the Investment Adviser and the
Company in the English High Court. In summary, Hipgnosis Music Limited alleges
a diversion of business opportunity from Hipgnosis Music Limited (of which Mr
Mercuriadis was previously a director) to the Company and the Investment
Adviser and also alleges that the Company unlawfully assisted Mr Mercuriadis
with, or received, this alleged diversion. Mr Mercuriadis, the Investment
Adviser and the Company deny such claims and intend to vigorously defend them.
The Company is not insured as to the costs of dealing with this claim.

 

For further information please contact:

 

 Hipgnosis Songs Fund                                              +44 (0) 20 7496 3000

 Robert Naylor / Sylvia Coleman

 Via Singer Capital Markets

 Hipgnosis Song Management                                         +44 (0) 20 4542 1530

 Merck Mercuriadis                                                 +44 (0) 20 4542 1511

 Ben Katovsky

 Giles Croot (Media)

 Singer Capital Markets - Corporate Broker                         +44 (0) 20 7496 3000

 James Moat / Alaina Wong / Angus Campbell (Corporate Finance)

 Alan Geeves / James Waterlow / Sam Greatrex (Sales)
 J.P. Morgan Cazenove - Corporate Broker                           +44 (0) 20 3493 8000

 William Simmonds / Jérémie Birnbaum (Corporate Finance)
 RBC Capital Markets - Corporate Broker                            +44 (0) 20 7635 4000

 Elliot Thomas / Max Avison (Corporate Finance)

 Headland Consultancy - Financial PR                               +44 (0) 20 3805 4822

 Susanna Voyle / Charlie Twigg

 

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