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ICM Crescendo Music Royalty Fund

Investor Eligibility : Open
Minimum Investment : Series A $10,000; Series B $10,000; Series US $10,000USD; Series C $150,000
Total Target Return : Series Options

January 2024 : Active
Compliance : 20230921IC

ICM Crescendo Music Royalty Fund : Alternative income strategy that pays investors from the ownership of music royalties

Every time a song is played, streamed, performed or downloaded; the owners earn a royalty.

The Fund is focused on the cash flow streams associated with music streaming and public performances - paid for the right to publicly perform or broadcast a song. This includes live concerts, playing music in shops, on the radio, on TV, in clubs or bars, YouTube, Spotify, and other streaming services.

How do we get access to music royalties?

ICM Crescendo Music Royalty Fund has built a strong network in the music industry, with deal flow outstripping available capital. Since its formation the investment team has reviewed 100+ deals.

Fund Advisors

We have partnerships with music industry leaders.

Industry Contacts

We receive referrals from catalogue brokers, lawyers, managers and artists that we have transacted with.

Branding and Reputation

We are known as a fair and transparent buyer of royalties.

Investment Strategy

  • Own a portfolio of diversified songs and catalogues.

  • Focus on recurring streaming revenue.

  • Focus on mid-market opportunities under 10M.

  • Use data analytics to forecast catalogue revenue.

  • Disciplined and transparent valuations.

ICM Crescendo Music Royalty Fund : Music Streaming Growth Drivers

GROWING MARKET PENETRATION, ACCESS TO DEVICES AND CHANGING DEMOGRAPHICS LEAD THE GROWTH OF MUSIC STREAMING WORLDWIDE.

Growth in Developed and Emerging Markets

Paid streaming as a percentage of smartphone users is on the rise. By 2030 it is forecasted that penetration will reach 53% in developed markets (34% in 2021) and 14% in emerging markets (6% in 2021).

More Devices

An increase in the number of streaming devices available, such as smart speakers, tablets, smart TVs, CarPlay, Android Auto, Peloton, etc. is enabling easier music consumption.

Changing Demographics

The average 16-24 year old spends nearly 2x as much time steaming music as the average population. The conversion from free to paid subscriptions is highest amongst 25-34 year olds at 2.29x average.

Goldman Sachs: Music in the Air (June 13, 2022) pages 17-20

ICM Crescendo Music Royalty Fund : Series Options

Series A

Min. Investment: $10,000

Management Fees: 1.90% Annual Distribution: $0.75

Series B

Min. Investment: $10,000

Management Fees: 1.90%

Annual Distribution: $0.75

Series C

Min. Investment: $150,000

Management Fees: 1.65%

Annual Distribution: $0.80

Series US$

Min. Investment: US$10,000

Management Fees: 1.90%

Annual Distribution: US$0.80

Investment Characteristics

Income and Growth (distributions paid monthly).

 

Redemption

Monthly, subject to conditions and restrictions see the Offering Memorandum for full details.

Management Participating Interest

The Manager will earn a 5% interest in the distributable income and equity of the Fund. No additional performance fees.

 

Features

ICM Advantaged DRIPTM option.

Eligible for registered accounts (RRSP, TFSA, etc.) at certain financial institutions.

ICM Crescendo Music Royalty Fund : Disclaimer

RISK FACTORS

Investment in securities of the Fund involves a degree of risk and is suitable only for investors who can withstand the loss of their investment. No assurance, representation, or warranty can be given that the Fund’s investment objectives will be achieved or that investors will receive a return of their invested capital.

Disclaimer Certain statements contained herein as they relate to ICM Investment Management Inc. (“ICM”), ICM Crescendo Music Royalty Fund (the “Fund”) and related parties and their respective views or predictions about the possible future events or conditions and their business operations and strategy, are “forward-looking statements“ within the meaning of that phrase under applicable Canadian securities law. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects“, “does not expect“, “is expected“, “anticipates“, “does not anticipate“, “plans“, “estimates“, “believes“, “does not believe“, or “intends“, or stating that certain actions, events or results “may“, “could“, “would“, “might“, or “will“ be taken, occur or achieved) are not statements of historical fact and may be “forward-looking statements“. Forward-looking statements are based on the current expectations, estimates and projections of the management of ICM, the Fund and related parties at the time the statements are made. They involve a number of known risks and uncertainties which would cause actual results or events to differ materially from those presently anticipated. The forward-looking statements contained in this document are given as of the date hereof. Except as otherwise required by law, ICM or the Fund does not intend to and assumes no obligation to update or revise these or other forward-looking statements it may provide, whether as a result of new information, plans or events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements as there can be no assurance that the condition, events, plans and assumptions on which they were based will occur. Purchasers Rights Securities legislation in certain of the provinces and territories of Canada provides purchasers with a statutory right of action for damages or rescission in cases where an offering memorandum or any amendment thereto contains an untrue statement of a material fact or omits to state a material fact that is required to be stated or is necessary to make any statement contained therein not misleading in light of the circumstances in which it was made (a “misrepresentation”). These rights, or notice with respect thereto, must be exercised or delivered, as the case may be, by purchasers within the time limits prescribed and are subject to the defenses and limitations contained under the applicable securities legislation. The following summary is subject to the express provisions of applicable securities legislation applicable and the regulations, rules and policy statements thereunder. Purchasers should refer to the securities legislation applicable in their province or territory along with the regulations, rules and policy statements thereunder for the complete text of these provisions or should consult with their legal advisor. The statutory rights of action described below are in addition to and without derogation from any other right or remedy that purchasers may have at law. If you are subject to the laws of Ontario, Saskatchewan, Nova Scotia or New Brunswick, those laws provide, in part, that if there is a misrepresentation in an offering memorandum, which was a misrepresentation at the time that you subscribed for the securities, then you will be deemed to have relied upon the misrepresentation and will, as provided below, have a right of action against the issuer of the securities (and, in certain instances, other persons) in respect of the securities purchased by you for damages, or alternatively, while still the owner of any of the securities purchased, for rescission, in which case, if you elect to exercise the right of rescission, you will have no right of action for damages against the issuer of the securities, provided that: (1) no person or company will be liable if it proves that you purchased the securities with knowledge of the misrepresentation; (2) in the case of an action for damages, the defendant will not be liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities as a result of the misrepresentation; and (3) in no case will the amount recoverable in any action exceed the price at which the securities were purchased by you. In Ontario, Saskatchewan or New Brunswick, in the case of an action for rescission, no action may be commenced more than 180 days after the date of the transaction that gave rise to the cause of action. In the case of any action other than an action for rescission, (A) in Ontario, no action may be commenced later than the earlier of (i) 180 days after you first had knowledge of the facts giving rise to the cause of action, or (ii) three years after the date of the transaction that gave rise to the cause of action, and (B) in Saskatchewan or New Brunswick, no action may be commenced later than the earlier of (i) one year after you first had knowledge of the facts giving rise to the cause of action; or (ii) six years after the date of the transaction that gave rise to the cause of action. In Nova Scotia, no action (for rescission or otherwise) may be commenced later than 120 days after the date on which payment was made for the securities. If you are subject to the laws of any other province or territory, reference should be made to the full text of the applicable provisions of the securities legislation in such provinces or territories or consultation should be undertaken with professional advisors.
Risk Factors An investment in the trust units ("Fund Units") is highly speculative and involves a number of risk factors inherent in an investment in the Fund Units and in the activities of the Fund, including the following, which subscribers should carefully consider before subscribing for the Fund Units. Although investments made by the Fund will be carefully chosen by the Manager, there is no representation made by the Manager that such investments will have a guaranteed return to Unitholders nor that losses will not be suffered by the Fund from such investments. This offering is not suitable for investors who cannot afford to assume significant risks in connection with their investments. Risks Associated with the offering: No Assurance that the Fund will achieve its Investment Objectives, Commercial performance of individual song, Risk associated with third party music streaming providers, such as Spotify, Apple Music, Pandora and YouTube, Net Asset Value Reporting, Reliance on consumer to stream music at high volumes, Changes to the distribution policies and royalty splits set by performance rights organizations (PROs), Royalty rates are set by government entities of local collecting societies, Risk associated with piracy and counterfeiting, Reputation, Speculative offering – No Guaranteed Return, Future Investments, No Operating History, Government Regulation, Competition, Distributions, Dilution, Leverage Applied to Investments, No Guarantee of Sale Proceeds at Disposition, No Guarantee of Royalty Payout and Fund Performance, Acquisition Risks, General Economic Conditions, Currency Risk, Interest Rate Risk, Reliance on Manager, Allocation Risk, Reliance on the Trustee and the Manager, Insured and Uninsured Losses, General Litigation Risk, Less than Full offering, Achievement of Investment Objective, Liability of Unitholders, Use of Available Cash, Limitation on Payment of Redemption Price in Cash, Termination of Fund as a Result of Redemption, Payment of Redemption Price – Issuance of Redemption Notes, Redemption Notes will be Unsecured, Payment of Redemption Notes, Priority of Redemption Notes over Fund Units, Fund Units are Not Liquid, Status of the Fund, SIFT Fund Status, Risks Associated with the Level of Foreign Ownership, Cyber Security Risk, Changes in Applicable Law, No Independent Counsel, Canadian Tax Related Risk Factors, U.S. Withholding Tax Risk and Foreign Jurisdiction Tax Related Risk Factors. Please see “Item 9 – Risk Factors” in the Offering Memorandum for a complete description of the risks associated with an investment in the Fund.

Pinnacle Wealth Brokers Inc.

Internal Compliance Audit : ICM Crescendo Music Royalty Fund 20230921IC : 1,2,3,4,8,13,20

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