Company Announcements

31 December 2021

ROUND HILL MUSIC ROYALTY FUND LIMITED

("RHM" or the "Company")

Acquisition of Rebelution catalogue

Provides Increased Exposure to Reggae Music

The Board of Round Hill Music Royalty Fund Limited is pleased to announce that the Company has acquired the master recordings and music publishing assets from the leading American reggae band Rebelution.

Key Acquisition Highlights:

·    The catalogue includes ownership of the master recordings from Rebelution's entire career, including rights owner's share of neighbouring rights

·    Additionally the catalogue also includes Rebelution's music publishing assets

·    Each of the seven studio albums being acquired by the Company hit #1 on Billboard's reggae album charts except for the band's 2007 debut Courage To Grow which hit #4

·    The album Falling Into Place was nominated for Best Reggae Album at the 2016 Grammy Awards

·    In 2018, Free Rein opened at #1 on the Billboard's Reggae Album chart and spent 16 consecutive weeks in the Top 5

·    Diversifies the portfolio into reggae, a genre in which RHM currently has limited exposure

·    Incredibly active touring band, playing large venues across America, helping propel future catalogue revenues

·    The acquisition is shared equally with Round Hill's private Fund III

Background to the Catalogue

Founded in Isla Vista, California, US reggae band Rebelution has achieved remarkable success since the release of the breakout 2007 debut album, Courage To Grow. In 2009, the band topped the Billboard Reggae Album Chart for the first of what would be five consecutive #1 Billboard reggae records; in 2014, they boasted the highest-selling reggae album release of the year and in 2016, they garnered a Grammy nomination for Best Reggae Album. Rebelution's transcendent live performances have taken on legendary status, earning the group sell-out headline shows from Red Rocks, Colorado to The Greek Theatre, California along with festival slots at Bonnaroo, Lollapalooza, ACL, Glastonbury and more. The band has independently sold over half a million albums to date.

Catalogue Details

The catalogue has diversified revenue exposures including, on the master side, streaming, comprising 73% of revenue mix, with the balance being comprised of 18% publishing, 6% neighbouring rights and 3% other. In terms of geographical exposure, 90% of the revenue is from the US, while the balance is from other countries.

The top songs ranked by revenue are: "Feeling Alright", "Fade Away", "Safe And Sound", "Free Rein" and "Count Me In".

All figures above are based on the catalogue's royalty statements in the calendar year 2020.

Disclosure of Financial Detail on Acquisitions

Due to commercial sensitivities, the Company is unable to disclose financial details for each acquisition as it occurs. However, on completion of the investment of proceeds from the C Share fundraise, together with the remaining undrawn balance of its existing revolving credit facility, the Company will make further financial disclosure on the acquisitions.

Trevor Bowen, Chair of Round Hill Music Royalty Fund, commented:

"This investment marks a major milestone for the Company with the acquisition of our first dedicated reggae catalogue and we are very pleased to further diversify the Company's portfolio into this important genre. Rebelution has clearly been at the forefront of the genre for many years and we are delighted to add this high quality catalogue to the Company's portfolio. The investment manager's ability to acquire catalogues from leading artists across such a wide variety of genres is a major asset to the Company. Following the C Share fundraise, acquisitions have provided the Company with exposure to outstanding artists as diverse as Rebelution, Zac Brown Band, Avicii, Supertramp, the O'Jays, Pearl Jam, Ozzy Osborne, Foreigner and Yes among others."

Josh Gruss, Chairman and CEO of Round Hill, the Company's investment manager, commented:

"Rebelution is the most successful reggae band to emerge in the last twenty years. They are a leading voice in their scene which is evident at their live shows where they routinely sell out incredible venues like Red Rocks and the Greek Theatre. I am a proud member of this scene myself and a big fan of Rebelution's music and I know we will be a great steward of these rights going forward. We are excited to add songs with the island sound to RHM's portfolio. With our recording, publishing and neighboring rights divisions, Round Hill is well set up to guide this full suite of rights into the future.

Rebelution commented:

"We are pleased to have closed this deal with Round Hill! Josh is a fan of the band and understands and appreciates the music. We look forward to working with the team and continuing our relationship!"

FOR FURTHER INFORMATION

Notes: 

Unless the context otherwise requires, capitalised terms used in this announcement have the meanings in the Prospectus.

The Company is a non-cellular Guernsey company. The Company's Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve its Investment Objective, the Company will invest in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP ("Round Hill"), to be ancillary thereto. 

Founded in 2010, Round Hill is a fully integrated owner and operator of music copyright properties and the sixth largest music publishing company in the US. Headquartered in New York with additional offices in Nashville, Los Angeles and London, Round Hill has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries