LEI: 984500EFS288D528B617
22
April 2024
Statement from Hipgnosis Song
Management Limited
Further to the announcement
published by the Board of Hipgnosis Songs Fund Ltd ("Hipgnosis
Songs Fund" or "the Company") on 18 April 2024, a spokesman for
Hipgnosis Song Management ("HSM" or the "Investment Adviser")
said:
"Hipgnosis Songs Fund is a
self-managed investment trust with multiple specialist advisers,
appointed by the Company's Board, to advise the Board in their
respective areas of expertise including accounting treatment,
valuations, tax, financial market reporting obligations and legal
matters. Under the Investment Advisory Agreement ("IAA") between
the Company and HSM, HSM's responsibilities as one of its
specialist advisors are clearly defined.
"HSM has repeatedly been blamed for
many issues affecting the Company which were not HSM's
responsibility under the terms of the IAA. We have previously
sought to address this in private with the Company's Board as we
felt it was in the best interests of shareholders to minimize
public commentary. Given recent developments we feel it is
now important to make our position clear.
"Based on extensive legal advice we
are confident that the Company has no legal grounds to terminate
our relationship without being subject to HSM's contractual rights
contained in the IAA. HSM has explained this in detailed legal
correspondence with the Company. The Company has not responded to
HSM on the legal arguments it has presented.
"HSM will vigorously protect its
interests should the Company purport to terminate the IAA. We will
use all means necessary to defend our contractual position and
interests. It is important that shareholders, songwriters and
artists understand that HSM has acted appropriately and
professionally in our role as Investment Advisor and fully in
accordance with the IAA.
"To be clear, were the Company to
purport to terminate the IAA and/or hand HSM's responsibilities
under the IAA to a third party, HSM and its majority shareholder
are fully resolved to protect all of our rights under the IAA,
including the right to exercise the call option to acquire the
Company's assets."
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For further information please
contact:
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Hipgnosis Song Management
Giles Croot
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+44 (0)20 4542 1511
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Paternoster Communications - Financial PR to
HSM
Tom Buchanan
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+44 (0)20 3012 0241
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About Hipgnosis Song Management Limited
Hipgnosis Song Management Limited is
the Investment Advisor for Hipgnosis Songs Fund Ltd (SONG.L) and
Hipgnosis Songs Capital. Hipgnosis was founded by Merck
Mercuriadis, former manager of globally successful recording
artists, such as Elton John, Guns N' Roses, Morrissey, Iron Maiden
and Beyoncé, and hit songwriters such as Diane Warren, Justin
Tranter and The-Dream. The Investment Adviser has assembled an
Advisory Board of highly successful music industry experts which
include award winning members of the artist, songwriter,
publishing, legal, financial, recorded music and music management
communities, all with in-depth knowledge of music publishing.
Members of Hipgnosis Song Management Ltd Advisory Board include
Nile Rodgers, The-Dream, Giorgio Tuinfort, Starrah, David A.
Stewart, Poo Bear, Bill Leibowitz, Ian Montone and Rodney
Jerkins.