Hipgnosis Songs Fund Limited has provided an update on the CRB III retroactive payments and the withdrawal of the October interim dividend payment. The company was notified by Citrin Cooperman, its Independent Portfolio Valuer, that it has reduced its expectations of industry-wide retroactive payments in relation to the U.S. Copyright Royalty Board's decision on royalties payable to songwriters for the period covering 2018-2022. As a result, Hipgnosis expects to receive significantly lower retroactive payments and will reduce its CRB III retroactive accrual from $21.7 million to $9.9 million as of March 31, 2023.

Due to the unwinding of the CRB III accrual, the company has decided to withdraw the proposed interim dividend of 1.1325 pence per share in order to comply with its revolving credit facility's Fixed Charge Cover Ratio covenant. Hipgnosis is in discussions with the agent and lenders to avoid any potential impacts on future covenant compliance. The company expects to declare and pay future dividends as targeted, pending satisfactory conclusion to discussions with lenders.

The person responsible for making this notification is Andrew Sutch, Chairman of Hipgnosis Songs Fund Limited. For further information, interested parties can contact Hipgnosis Song Management or the company's corporate brokers. Hipgnosis Songs Fund is a Guernsey registered investment company that offers investors exposure to songs and associated musical intellectual property rights. The company became a constituent of the FTSE 250 Index in March 2020 and is recognized as an investment trust under applicable HMRC regulations.