REG - Hipgnosis Songs Fund - Final Due Diligence Findings

Hipgnosis Songs FundAnnouncement

28/03/2024 09:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240328:nRSb6877Ia&default-theme=true

RNS Number : 6877I  Hipgnosis Songs Fund Limited  28 March 2024

LEI: 213800XJIPNDVKXMOC11

28 March 2024

Hipgnosis Songs Fund Limited ("Hipgnosis" or the "Company")

Final Due Diligence Findings

The Board of Hipgnosis Songs Fund today provides an update on the findings of
the due diligence that has been conducted on the Company's assets as part of
the Strategic Review.

The Board appointed Shot Tower Capital, LLC ("Shot Tower") as lead adviser to
provide an independent valuation of the Company's assets. On 4 March 2024, the
Company announced that Shot Tower had provided the Board with the preliminary
valuation report, as at 1 March 2024, which estimated the fair market value of
the Company's Portfolio at between $1.80 billion and $2.06 billion.

The Board has since received Shot Tower's final valuation report, which
confirms that, based on their due diligence and analysis, the fair market
value of the Company's portfolio is $1.948 billion, which represents the
midpoint of a final concluded range of $1.83 billion and $2.07 billion. This
represents a multiple of trailing 12-month net cash revenue after royalty and
administration costs ($121.7 million) of 16.0x as of 30 June 2023.

A summary of the findings of the due diligence can be found on the Company's
website at www.hipgnosissongs.com/song-investors/
(http://www.hipgnosissongs.com/song-investors/) . Shot Tower's report contains
references to separate legal and financial due diligence reports completed by
Reed Smith LLP and BDO USA, P.A., respectively.

The Board with its advisers continues to assess all options for the future of
the Company. The Board will announce the conclusions of the Strategic Review,
which will include proposals for the future of the Company, by 26 April 2024.
The Board intends to seek shareholder approval for such proposals at an
extraordinary general meeting as soon as practicable thereafter.

 

 For further information please contact:

 Hipgnosis Songs Fund

 Robert Naylor                                                        +44 (0) 20 7496 3000

 Via Singer Capital Markets

 Singer Capital Markets - Corporate Broker

 James Moat / Alaina Wong / Angus Campbell (Corporate Finance)        +44 (0) 20 7496 3000

 Alan Geeves / James Waterlow / Sam Greatrex (Sales)
 Headland Consultancy - Financial PR                                  +44 (0) 20 3805 4822

 Susanna Voyle / Charlie Twigg

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCPPUMAWUPCURR