Hipgnosis Songs Fund (SONG) has provided an update following the vote against continuation at its recent AGM on 26 October 2023.
As part of a strategic review, the board intends to appoint independent advisers to conduct due diligence on the company’s assets to identify alternative proposals for the future of the company. The board has also requested that Hipgnosis Song Management Limited, the Company’s Investment Adviser, proposes alternative terms for their future investment advisory arrangements to the company.
The board also announced that 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.
SONG : Hipgnosis Songs Fund provides and update on strategic review