Hipgnosis Song. Regulatory News (SONG)

11 July 2018

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

Acquisition of Music Catalogue

The Board of Hipgnosis Songs Fund Limited and its Investment Adviser, The Family (Music) Limited, are pleased to announce that the Company has reached agreement to acquire its first music catalogue from Terius Youngdell Nash, better known by his stage name The-Dream. 

The Company will acquire a 75% interest in the catalogue for up to US$23.75m, to be funded through the Company's cash resources. The remaining 25% interest in the catalogue will be retained by The-Dream.

The catalogue, which is one of the eight pipeline catalogues flagged in the Company's prospectus published on 27 June 2018, comprises 302 songs in total, including 25 Billboard top 10 songs, 4 Grammy Award winning songs and songs performed by global recording artists including Justin Bieber, Beyoncé, Rihanna and Jay-Z. Songs include the Number 1 singles: "Umbrella", which was number 1 in more than 20 countries; "Single Ladies (Put a Ring on It)", the 2010 Grammy Award Song of the Year; "Baby" which is the most certified song of all time; and the multi-platinum Touch My Body by Mariah Carey.

Merck Mercuriadis, Founder of The Family (Music) Limited and Hipgnosis Songs Fund Limited, said:

"'It's critical for us to set the highest standards with our first acquisition. The-Dream is not only arguably the culturally most important songwriter of his generation but he has written the marquee songs for the culturally most significant artists of our time including Beyoncé, Rihanna, Justin Bieber, Jay Z and Kanye West. It's an honour for this to not only be our first order of business but also to welcome Dream to our Advisory Board. He is a catalyst on so many levels and a big part of our future."

The-Dream, said:

"I'm proud to be part of this beautiful venture. Merck is a music titan who began his career well before I ever imagined having one. His futuristic views captured my attention and instantly made an impact. Merck sees me as I see myself. I sought out to be my generation's Babyface and Dr. Dre, he sees the same. In making this decision I said to Merck "I need a Jimmy Iovine in my life", not just to nurture my songs but to also help solidify the legacy I seek for myself and my songs even after I'm gone, for my Children and beyond. His reply was simply "I Got it!", and after came action like the one you see playing out today in real time. So here we are one step in the face of the endless future."

Andrew Sutch, Chairman of Hipgnosis Songs Fund Limited, said:

"I am delighted that the Company has secured its maiden catalogue acquisition. This acquisition highlights the Investment Adviser's ability to identify and acquire attractive catalogues in line with our investment objective and policy and will support the Company's first year income targets."

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NOTES TO EDITORS

About Hipgnosis Songs Limited

(www.hipgnosissongs.com)

Hipgnosis, which was founded by Merck Mercuriadis, is a Guernsey registered investment company established to offer investors a pure-play exposure to songs and associated musical intellectual property rights. In its Initial Public Offering on the Specialist Fund Segment of the London Stock Exchange's main market on 11 July 2018, the Company raised approximately £202m gross equity capital.

About The Family (Music) Limited

The Company's Investment Adviser is The Family (Music) Limited, which 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, and former CEO of The Sanctuary Group plc.  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 The Family (Music) Limited Advisory Board include Nile Rodgers, The-Dream, Bill Leibowitz, Ian Montone, and Jason Flom.

About The-Dream

Terius Youngdell Nash, better known by his stage name The-Dream, is an American R&B record producer, singer and songwriter. He is a multiple Grammy Award winner and his co-writing credits include some of the most culturally important pop hits of the last 15 years including "Me Against the Music" (2003) for Britney Spears and Madonna, "Umbrella" (2007) for Rihanna, "Single Ladies (Put a Ring on It)" (2008) for Beyoncé , "Baby" (2010) for Justin Bieber, "All Of The Lights" (2011) for Kanye West, "No Church In The Wild" for Jay Z, Kanye West and Frank Ocean (2012) and "Holy Grail" for Jay Z and Justin Timberlake (2013).

His Number 1 hits include: "Umbrella", which was number 1 in more than 20 countries; "Single Ladies (Put a Ring on It)", the 2010 Grammy Award Song of the Year; "Baby" which is the most certified song of all time; and the multi-platinum Touch My Body by Mariah Carey.

In 2016 he wrote songs featuring in the new album releases from Rihanna, Kanye West and Beyoncé.