Hipgnosis Songs Fund Limited has provided an update on the impact of the U.S. Copyright Royalty Board's decision on retroactive payments and the withdrawal of the October interim dividend payment. The company's Independent Portfolio Valuer, Citrin Cooperman, has reduced its expectations of industry-wide retroactive payments 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. The Board has decided to withdraw the proposed interim dividend of 1.3125 pence per share in order to comply with its revolving credit facility's Fixed Charge Cover Ratio covenant. The company is in discussions with the agent and lenders to mitigate any potential impacts on future covenant compliance. The Board expects to declare and pay future dividends as targeted, pending satisfactory conclusion to discussions with lenders.

Hipgnosis Songs Fund Limited 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.