Hipgnosis Songs Fund Limited has released a statement in response to recent developments, addressing the ongoing dispute with its Investment Adviser, Hipgnosis Song Management (HSM). The Investment Adviser has expressed concerns about being blamed for issues that were not within its responsibility under the Investment Advisory Agreement (IAA). HSM has stated that it has sought to address these concerns privately with the Company's Board but has now decided to make its position clear.
According to HSM, the Company has no legal grounds to terminate their relationship without being subject to HSM's contractual rights contained in the IAA. The Investment Adviser has emphasized that it will vigorously protect its interests and defend its contractual position and interests, should the Company attempt to terminate the IAA. HSM has also highlighted that it has acted appropriately and professionally in its role as Investment Adviser and in accordance with the IAA.
Furthermore, HSM has made it clear that it is fully resolved to protect all of its rights under the IAA, including the right to exercise the call option to acquire the Company's assets, should the Company attempt to terminate the IAA and hand over HSM's responsibilities to a third party. The statement concludes with contact information for further inquiries.
This statement from Hipgnosis Songs Fund Limited sheds light on the ongoing dispute with its Investment Adviser, Hipgnosis Song Management, regarding the termination of their relationship. The Investment Adviser has expressed confidence in its legal position and has stated its determination to protect its rights under the Investment Advisory Agreement. This development underscores the importance of clear and well-defined contractual agreements in business relationships.