Further to the vote against the Company continuing its business as a closed-ended investment company at the Company’s Annual General Meeting held on 26 October 2023, the Hipgnosis Songs Fund Limited (LON:SONG) Board has announced an update on the strategic review.
Update on the Strategic Review
As part of the Strategic Review, the Board intends to appoint independent advisers to conduct due diligence on the Company’s assets.
Completion of this due diligence will provide a strong knowledge base from which the Board will commence a process of identifying and bringing forward alternative proposals for the future of the Company.
During this period, the Board has requested that Hipgnosis Song Management Limited, the Company’s Investment Adviser, proposes alternative terms for their future investment advisory arrangements to the Company.
Audit Tender
The Company is currently undertaking an audit tender process for the 31 March 2024 audit. PwC have indicated they will not be participating in the tender. The Company will confirm the new auditor in due course.
Service of Claim
Further to the disclosure in the 2023 Annual Report, on page 100, Hipgnosis Music Limited (in liquidation since March 2018) has served proceedings against Mr Mercuriadis, the Investment Adviser and the Company in the English High Court. In summary, Hipgnosis Music Limited alleges a diversion of business opportunity from Hipgnosis Music Limited (of which Mr Mercuriadis was previously a director) to the Company and the Investment Adviser and also alleges that the Company unlawfully assisted Mr Mercuriadis with, or received, this alleged diversion. Mr Mercuriadis, the Investment Adviser and the Company deny such claims and intend to vigorously defend them. The Company is not insured as to the costs of dealing with this claim.
