Round Hill’s public fund raises another $46.1m, enabling it to acquire earmarked investments

Round Hill CEO and Founder, Josh Gruss

Round Hill’s publicly-traded fund in London – Round Hill Music Royalty Fund – has confirmed that it’s raised a further $46.1m.

This is important for Round Hill as it enables the fund to fully acquire its previously-stated pipeline of investments.

Round Hill floated the fund on the London Stock Exchange in November, raising $282m ahead of its IPO.

However, that $282m was $93m lower than the $375m Round Hill was hoping to raise.

Round Hill’s initial intention was to acquire a portfolio of copyrights owned by its Round Hill Music Royalty Fund I, which originally launched in the US in 2012.

That catalog was recently independently valued at $363m, and contains songs made famous by the Beatles, Celine Dion, Louis Armstrong and the Rolling Stones

With the additional $46.1m added to the $282m, Round Hill has therefore raised $328.1m.

Its own prospectus allows Round Hill Music Royalty Fund Ltd the wiggle room to raise the shortfall on the $363m valuation via debt – which is why the firm’s been able to announce that its public fund now has enough resource to satisfy the acquisition of these copyrights.

You can read the firm’s announcement to the markets today (December 16) below.

RHMRF – Results of Placing

The Board announces that 46,100,000 Ordinary Shares (the “New Shares”) have been conditionally placed pursuant to a placing under the Placing Programme as detailed in the prospectus published by the Company on 19 October 2020 and the supplementary prospectus published on 3 November 2020 (together the “Prospectus”) (the “Further Issue”). The New Shares, which (when issued) will rank pari passu with the Company’s existing Ordinary Shares, will be issued at a price of US$1.01 per New Share.

The Board is pleased to announce that the net proceeds of the Further Issue will ensure that the Company has sufficient capital, combined with its ability to utilise gearing of up to 25 per cent. of the Economic NAV1, to acquire all of the Pipeline Investments2 as at the 30 June 2020 valuation.

Application has been made to the London Stock Exchange for all of the New Shares to be admitted to trading on the Specialist Fund Segment (“Admission”). It is expected that Admission will become effective and that unconditional dealings in these shares will commence at 8.00 a.m. (London time) on 18 December 2020.

Immediately following Admission, the total number of Ordinary Shares in issue will be 328,100,000 and the total number of voting rights in the Company will be 328,100,000.

The above figure may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under MAR. Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.Music Business Worldwide

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