Hipgnosis Songs Fund is doing a limited subscription offering…but us U.S. folks aren’t allowed in.
Copied from their communication:
‘Re: Hipgnosis Songs Fd Ltd
Cusip: G4497R113
Please call (your broker) by cut off 01/27/21 to submit your instruction.
Restriction: Persons resident outside the UK may be affected by the laws and regulation of the relevant jurisdictions. Such overseas shareholders should inform themselves about and observe any applicable legal requirement. It is the responsibility of overseas shareholders to satisfy themselves as to the full observance of the laws of the relevant jurisdiction.
OPT 01: Securities Option – GBP
Holders resident in United States, Hong Kong, Canada, Australia, South Africa and Japan are not eligible to participate in this option.
Minimum quantity to be instructed: 1000 unit
Minimum multiple quantity to be instructed: 100 unit
1 Hipgnosis GBP-ORD- (ISIN: GG00BFYT9H72) for every 1 share held.
Subscription Price to pay: 1.21 GBP
Funds must be available in account.
Holders are urged to refer to the prospectus for complete terms and conditions.
Website: http://www.hipgnosissongs.com
Response after cut off is best effort.’
# Hipgnosis Songs Fund (SONG.L HPGSF)
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On closer review, the Subscription Price converts to 1.66 USD, so we aren’t missing out on much anyway.
True, 1.21 is roughly the average price it has traded at in recent weeks… and a rational price to pay,
I think, but no reason to fret about the offering — we’ll be able to buy at that price or lower on the market over the coming months, I’m sure.
I’ll just reiterate that this is not a hot story idea, it’s a yield play.
There’s some mild growth assumption built in at this price, as is needed because they’ve had to pay stiffer prices to buy songs recently, and perhaps it will do better if the song royalty world changes meaningfully over time (as it has over the past ten years), but I’m comfortable with the current price and not counting on the cash flow growing dramatically.
Yes, I figured I would just buy the associated probable dip, on the open market.
But NOW –
a long standing limit order I had in just got mysteriously cancelled – on the day it might have briefly hit! (1.6 USD, 1/28/21).
Is there something in the laws that says U.S. folks can’t buy at all now – (not just we can’t buy the subscription)? Or could it be something individual to a broker? I bought some HPGSF on Sept/25/20 with no problem (though did note that the order filled in several small bites, presumably because of illiquidity).
What I like about this one, is imagined stability; being in a completely different sector than my now-overweight tech; and the presumable inelasticity of peoples’ demand for music (even/especially during hard times).
But it’s all nibbles, and by now the whole thing is becoming overpowered by curiosity – how do these laws work?!
Limit orders are controlled by brokers, usually you’ll enter an expiration date when you place the order (or the broker will have a default date). I’ve had limit orders cancelled by my broker for corporate events, like splits or special dividends, but most cancellations are really expirations. You’d have to ask them if you want specifics. I’m not aware of any laws for limit orders on foreign exchanges, but that doesn’t mean there aren’t any.
TD Ameritrade cancels my buy order for HPGSF and gives this message: “only closing orders are accepted on foreign etfs”. Thoughts? Workaround??
TD Ameritrade cancels my HPGSF order and gives message: “only closing orders are accepted on foreign etfs.” Thoughts? Workaround??
Same here. I bought some in December with no problem. Today I tried to increase my position and I got that same error message. Very disappointing. I wish we had some explanation.
TD Ameritrade did not have a quick answer as to why “closing orders only” any
informatizo on why or where to buy HPGSF?
Hipgnosis Songs Fund (SONG.L HPGSF)