31 December 2021

ROUND HILL MUSIC ROYALTY FUND LIMITED

("RHM" or the "Company")

Acquisition of Producer Royalties of Jack Richardson CM and Garth Richardson

Includes Timeless Hits by Alice Cooper, Bob Seger, Rage Against The Machine, Chevelle, Nickelback, Rise Against & Trapt

The Board of Round Hill Music Royalty Fund Limited is pleased to announce that the Company has acquired 100% of a catalogue of 308 tracks from the Richardsons, Jack and his son Garth, made up of producer royalties and neighbouring rights income to timeless classic tracks.

Key Acquisition Highlights:

·    The catalogue comprises 308 recordings

·    The catalogue includes the #1 songs "Send the Pain Below" (Chevelle), "Killing in the Name" (Rage Against the Machine), "Night Moves" (Bob Seger), "Swing Life Away" (Rise Against) and "Headstrong" (Trapt)

·    Artists in the catalogue include Alice Cooper, Bob Seger, Rage Against The Machine, Chevelle, Nickelback, Rise Against, Trapt and Mudvayne

·    Garth Richardson has on one occasion won Canada's Juno Award for Producer of the Year and been nominated twice more for that award and for a Grammy Award

·    The Junos honoured Jack by naming him the recipient of the "Walt Grealis Special Achievement Award" in 1986, based on his significant contribution to the Canadian music industry and by re-naming the "Producer of the Year" award to the "Jack Richardson Producer of the Year" award in 2003.  Jack's influence in the music industry was also recognized by inducting him as a member of the Order of Canada

Background to the Catalogue:

Garth Richardson is a Canadian record producer and music engineer. He is the son of music producer Jack Richardson CM, who has been described as a pioneer of the music recording industry in the 1960s and 1970s.

Jack Richardson CM produced several classics including Alice Cooper's album "Love It To Death" and Bob Seger's single "Night Moves". "I'm Eighteen" by Alice Cooper peaked at #21 on the Billboard Top 200 in 1971 and was certified platinum, and "Night Moves" reached the top 10 on the Billboard Hot 100 in 1977.

Garth Richardson grew up in his father's studio, Nimbus 9, and engineered multiple hit records.  He then launched out on his own to become a successful music producer and created his studio, The Farm Studios.  Garth has produced bands such as Chevelle, Rage Against the Machine, Mudvayne, Nickelback, Trapt and Rise Against.

Garth Richardson produced Rage Against the Machine's self-titled debut album which is ranked 221 on Rolling Stone Magazine's 500 'Greatest Albums of All Time' list in 2021. Rage Against The Machine's song "Killing in the Name" is considered one of the top hard rock songs of all time and Rolling Stone ranked it 24 on its 'Greatest Guitar Solos of All Time' list in 2008.

Trapt's "Headstrong", also produced by Garth Richardson, was a #1 Billboard Rock song and #4 Billboard Mainstream Top 40 song in 2003.

Chevelle, an alternative metal band, released their breakthrough single "The Red" in their major label debut "Wonder What's Next" in 2002. The song has reached platinum status twice over in the United States. The song played during the 2003 MTV Awards and was used at the 2021 WWE Hall of Fame Ceremony.

Catalogue Details:

The Company's acquisition comprises 100% of producer royalties and neighbouring rights income.

The catalogue has significant exposure to Streaming, comprising 72% of revenue mix, with the balance being comprised of 6% Physical, 5% Download, 4% Sync, 10% Other, and 3% Sound Exchange.

The top five songs ranked by revenue are: "The Red" (Chevelle), "Send the Pain Below" (Chevelle), "Killing in the Name" (Rage Against the Machine), "Swing Life" (Rise Against) and "Headstrong" (Trapt).

All figures above are based on the catalogue's royalty statements in the calendar years 2018-2020.

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 of US$86.5 million, 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:

"We are delighted to announce further positive progress with another landmark acquisition that provides the Company with exposure to a range of timeless classic tracks. Jack and Garth Richardson are exceptionally well-regarded producers and their impressive catalogue further diversifies RHM's portfolio in terms of genre and royalty type with the addition of key tracks from some of alternative metal's best-known bands."

Josh Gruss, Chairman and CEO of Round Hill, the Company's Investment Manager, commented:

"When you think of the most revered alternative metal producers you think of Garth Richardson, whose body of work, with some of the greatest bands of the genre, speaks for itself. A true pioneer, he has played a pivotal role in some of the most iconic songs of recent times, and we are delighted that he has entrusted Round Hill with both his work and the amazing legacy of his legendary father." 

Garth Richardson commented:

"Producing music and working with artists to create music that stands the test of time is engrained in the Richardson DNA.  I am truly honoured to be a part of the Round Hill Music family. We know we are in great hands as they value the body of work that my father and I have poured our blood, sweat and tears in over the years.  For those that knew Jack, I just know that he is looking down on us with a sandwich and Diet Coke in hand and a huge smile on his face."

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.