RHM.L Regulatory News (RHM)

8 February 2022

ROUND HILL MUSIC ROYALTY FUND LIMITED

("RHM" or the "Company")

Acquisition of the Alice In Chains Catalogue

Confirms RHM's belief in investing in rock artists of the highest calibre

The Board of Round Hill Music Royalty Fund Limited is proud to announce that the Company has acquired a significant majority of the rights to the legendary and influential American rock band, Alice In Chains. The acquisition covers the publishing, masters and neighbouring rights of the band.

Catalogue Details:

The Company's acquisition comprises a significant majority of the publishing, masters and neighbouring rights in the catalogue comprising 94 compositions and 159 recordings.

Revenue from the catalogue is attributable to a diverse group of sources. 53% of the catalogue's income is earned from masters, 38% of the income is from publishing sources including writer's share of performance income and 9% is from neighbouring rights income. In terms of geographical exposure, 75% of the revenue is from the US, while the remaining balance is from other countries.

 All figures above are based on the catalogue's royalty statements in the calendar years 2018-2020.

Disclosure of Financial Detail on Acquisitions:

Due to commercial sensitivities, the Company is unable to disclose financial details for each acquisition as it occurs. However, on completion of the investment of proceeds from the C Share fundraise of US$86.5 million, together with the remaining undrawn balance of its existing revolving credit facility, the Company will make further financial disclosure on the acquisitions.

Trevor Bowen, Chair of Round Hill Music Royalty Fund, commented:

"We are delighted to add a premier, iconic rock catalogue of exceptional quality to the Company's portfolio. Alice In Chains represents an extremely compelling addition to the Company's existing holdings and increases our stature in a genre in which we are building an established reputation for sourcing extremely prominent acquisitions of enduring importance for the benefit of our shareholders."

Josh Gruss, Chairman and CEO of Round Hill, the Company's investment manager, commented:

"Over more than three decades Alice In Chains has cemented its place in the annals of rock history. As one of the greatest bands of their generation they helped trailblaze a global musical movement and their songwriting, recording and performances have remained consistently exceptional ever since.  Seeing them perform at Lollapalooza in 1993 changed my life and now it's happening again. I couldn't be more excited." 

FOR FURTHER INFORMATION

Notes: 

Unless the context otherwise requires, capitalised terms used in this announcement have the meanings in the Prospectus.

The Company is a non-cellular Guernsey company. The Company's Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve its Investment Objective, the Company will invest in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP ("Round Hill"), to be ancillary thereto. 

Founded in 2010, Round Hill is a fully integrated owner and operator of music copyright properties and the sixth largest music publishing company in the US. Headquartered in New York with additional offices in Nashville, Los Angeles and London, Round Hill has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries.