RHM.L Regulatory News (RHM)

5 January 2022

ROUND HILL MUSIC ROYALTY FUND LIMITED

("RHM" or the "Company")

Acquisition of Master Artist Royalties and Long-Term Administration Agreement for Nancy Wilson

Provides Access to legendary American rock band Heart

The Board of Round Hill Music Royalty Fund Limited is pleased to announce that the Company has acquired a significant share of the master artist royalties and entered into a long-term agreement to administer the neighbouring rights income of the catalogue of Nancy Wilson, acclaimed singer, songwriter and guitarist of Rock 'n' Roll Hall of Fame-inducted band Heart.

Key Acquisition Highlights:

· Significant share of the rights to American rock band Heart

· Heart has sold over 35 million records worldwide and a total of four Grammy nominations to date

· Catalogue includes the #1 hit "These Dreams" that was certified platinum five times

· Further classic tracks in the catalogue include "Barracuda," "Magic Man," "Alone" and "Crazy On You"

Background to the Catalogue:

Heart's breakthrough came in 1975 with the release of their debut double platinum selling album Dreamboat Annie, which generated the hits "Magic Man" and "Crazy on You". Their third studio album "Little Queen" has reached double and triple platinum in Canada and United States respectively. In 1985, Heart released their eighth studio album which produced the band's first #1 single "These Dreams" and was certified platinum five times and nominated for a Grammy Award for Best Rock Performance by a Duo or Group with Vocal.

Wilson, who has been ranked as one of the greatest female guitarists of all time by Gibson, was inducted into the Rock n' Roll Hall of Fame in 2013 with her sister Ann. That same year, she and her sister Ann, also a member of Heart, received a Star on the Walk of Fame in Hollywood.

Catalogue Details:

The Company's acquisition comprises a significant share of Nancy Wilson's master artist royalties and administration rights on Nancy Wilson's neighbouring rights income.

The catalogue has significant exposure to Streaming, comprising 35% of revenue mix, with the balance being comprised of 2% Physical, 7% Download, 13% Sync and 4% Other. Neighbouring rights income comprises 39% of the catalogue's revenue. In terms of geographical exposure, 61% of the revenue is from the US, while the balance is from other countries.

The top five songs ranked by revenue are: "Barracuda," "Alone," "Crazy on You," "Magic Man," and "These Dreams."

All figures above are based on the catalogue's royalty statements in the calendar years 2017-2020.

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 the Company, commented:

"We are very pleased to announce the acquisition of Nancy Wilson's fantastic catalogue of classic Heart tracks from across her career including songs from her double and triple platinum selling albums. This important acquisition provides the Company with direct exposure to a timeless American rock band."

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

"Nancy has had astonishing success over the last 45 years. She is an icon and the longevity of her music is a testament to her incredible talent."

Nancy Wilson commented:

"I'm honored to be working with the good people at Round Hill and am looking forward to an ongoing working relationship."

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.