Loop Media secures $525K subordinated loan By Investing.com

BURBANK, CA – Loop Media, Inc. (the “Company”) has entered into a subordinated business loan and security agreement with Agile Capital Funding, LLC (“Lender”), securing a $525,000 loan, as per a recent 8-K filing with the Securities and Exchange Commission. The loan, facilitated through a subordinated secured promissory note, was effective Sunday, August 26, 2024, and involves weekly repayments commencing Monday, September 2, 2024.

Under the terms of the agreement, the total repayment amount is set at $756,000, reflecting principal and interest, to be paid in weekly installments of $27,000. The loan is set to mature on March 10, 2025, with the option for the Company to prepay the note subject to a prepayment fee equivalent to the remaining interest through the maturity date.

The Company, with its subsidiary Retail Media TV, Inc., has agreed to provide the Lender with a security interest in specific properties and assets. The loan is subordinated to certain senior indebtedness of the Company existing prior to the effective date of the agreement.

Additionally, Loop Media has committed to various covenants, including delivering financial statements and promptly notifying the Lender of certain events. The agreement also includes negative covenants restricting the Company from creating additional liens on the collateral or selling assets outside the ordinary course of business without the Lender’s consent.

Standard events of default are outlined in the agreement, such as failure to make payments, material adverse changes in the Company’s business, and government liens against the Company or its subsidiaries. Upon default, an additional interest rate of 5% will be applied to the loan.

In other recent news, Loop Media, a provider of help supply services, announced a series of significant developments. The company’s common stock is set to be delisted from the NYSE American due to the low selling price of its common stock. Loop Media has not appealed the decision and trading has since begun on the OTC Pink Market.

In addition to the delisting, Loop Media reported a 26% drop in fiscal Q2 2024 revenue, which stood at $4 million, and a decrease in gross profit margin to 10.4% from 29.4% in the previous year. Amid these financial results, the company also extended its loan agreement with GemCap Solutions to July 29, 2025, and added its wholly-owned subsidiary, Retail Media TV, Inc., as a co-borrower.

Despite these challenges, Loop Media has been granted until October 23, 2025, by the NYSE American LLC to meet the continued listing standards. Furthermore, the company announced plans to introduce several Free Ad-Supported Streaming TV (FAST) channels, extending its reach into consumer homes. These are among the recent developments shaping the strategic direction of Loop Media.

InvestingPro Insights

As Loop Media, Inc. navigates its financial landscape, InvestingPro data and tips offer a snapshot of the company’s recent performance and potential concerns for investors. The company’s market capitalization stands at a modest $4.85 million, reflecting a challenging market position. With a negative P/E ratio of -0.2 and an adjusted P/E ratio for the last twelve months as of Q3 2024 at -0.18, the financial metrics suggest that the company is not currently generating profits.

InvestingPro Tips indicate that Loop Media is operating with a significant debt burden and is quickly burning through cash, which is consistent with the need for the recent loan. The company’s stock has also taken a substantial hit, declining by 50% over the last month and by a staggering 93.64% over the past year. These figures underscore the high price volatility that the stock generally trades with. Additionally, with short-term obligations exceeding liquid assets, financial flexibility may be constrained. Analysts do not anticipate the company will be profitable this year, which aligns with the negative revenue growth of -36.46% over the last twelve months as of Q3 2024.

While the agreement with Agile Capital Funding provides necessary capital, it’s important for investors to consider these financial indicators. For those looking to delve deeper into Loop Media’s performance and outlook, InvestingPro offers a comprehensive suite of additional tips to help investors make informed decisions. To explore further, visit https://www.investing.com/pro/LPTV for more InvestingPro Tips, where you’ll find a total of 17 tips covering various aspects of the company’s financial health and market performance.

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