Loop Media, Inc. Announces $2.45 Million Registered Direct Offering and Private Placement
Loop Media, a leading multichannel streaming CTV platform, has announced a definitive securities purchase agreement for a registered direct offering of 9,652,174 shares at $0.15 per share, expected to close around June 3, 2024. Concurrently, a private placement involves the sale of 4,347,826 shares at $0.2309 per share. The total anticipated gross proceeds from these offerings are approximately $2.45 million, to be used for working capital and operations. Roth Capital Partners is the exclusive placement agent. The shares in the private placement are unregistered under the Securities Act of 1933 and cannot be sold in the U.S. without registration or applicable exemption.
- Loop Media expects to raise approximately $2.45 million in gross proceeds.
- The proceeds are intended for working capital and to fund operations.
- Roth Capital Partners is acting as the exclusive placement agent, suggesting professional support.
- The offering includes a concurrent private placement, indicating confidence from internal stakeholders.
- The offering price of $0.15 per share is significantly low, potentially indicating undervaluation.
- Shareholders may face dilution with the issuance of 9,652,174 new shares.
- The company has to deduct placement agent fees and other offering expenses from the gross proceeds.
- The private placement shares are unregistered and can't be resold in the U.S. without registration or exemption.
Insights
Loop Media's recent direct offering and private placement reveals key financial moves aimed at bolstering the company's operational capabilities. The total raised amount is
This appears to be a strategic decision to improve liquidity and fund ongoing operations by utilizing both public offerings and private placements. A notable aspect is the involvement of a company director in the private placement, which may signal a vote of confidence in the company's future prospects from within the organization.
From a financial standpoint, these moves can be seen as both positive and neutral. On one hand, the additional capital injection is likely to support business activities and potentially drive growth. On the other hand, the issuance of new shares dilutes existing shareholders' equity, which might be a concern for some investors. The offered price points reflect a substantial discount compared to potential market valuations, indicating an urgent need for capital or a calculated investment at a pivotal growth stage.
Moreover, the offering's success hinges on its closure and the resulting utilization of the funds. Investors should watch for how effectively Loop Media can leverage this capital to enhance its business model and drive shareholder value.
Examining the market implications, Loop Media's move to raise additional capital via a direct offering and a private placement highlights their strategy to maintain and possibly expand their market position in the competitive streaming and digital signage industry. The company’s choice of
The market reaction to such announcements typically involves an assessment of the company’s valuation and growth potential. Investors will be keen to understand how Loop Media plans to utilize the raised funds — whether for enhancing content offerings, upgrading technology infrastructure, or expanding market reach. Successful deployment of these funds could result in increased market share and revenues.
However, the dilution of shares could affect current valuation metrics, making it essential for investors to weigh short-term dilution against potential long-term gains. Additionally, the involvement of Roth Capital Partners as the exclusive placement agent suggests a professionally managed offering, which could build investor confidence.
Overall, the market will be looking at the efficiency and transparency with which Loop Media executes its stated objectives post-funding.
Additionally, in a concurrent private placement the Company entered into a definitive securities purchase agreement with a certain director of the Company for the purchase and sale of an aggregate of 4,347,826 shares of the Company’s common stock (or common stock equivalents) at a purchase price of
Roth Capital Partners is acting as the exclusive placement agent for the offering.
The Company expects the gross proceeds from the offering to be approximately
A shelf registration statement on Form S-3 (File No. 333-268957) relating to the shares of common stock (and common stock equivalents) to be issued in the offering was previously filed with the Securities and Exchange Commission (the “SEC”) and is currently effective. The offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement, relating to the offering that will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting Roth Capital Partners, LLC at 888 San Clemente Drive,
The shares of common stock (or common stock equivalents) offered in the private placement described above were offered under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Regulation D promulgated thereunder and have not been registered under the Act, or applicable state securities laws. Accordingly, the shares of common stock (or common stock equivalents) may not be offered or sold in
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the shares of common stock (or common stock equivalents), nor will there be any sale of the shares of common stock (or common stock equivalents) in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.
About Loop Media, Inc.
Loop Media, Inc. ("Loop®") (NYSE American: LPTV) is a leading connected television (CTV) / streaming / digital out-of-home TV and digital signage platform optimized for businesses, providing music videos, news, sports, and entertainment channels through its Loop® TV service. Loop Media is the leading company in the
Loop® TV’s digital video content is streamed to millions of viewers in CTV / streaming / digital out of home locations including bars/restaurants, office buildings, retail businesses, college campuses, airports, among many other venues in
Loop® TV is fueled by one of the largest and most important premium short-form entertainment libraries that includes music videos, movie trailers, branded content, and live performances. Loop Media’s non-music channels cover a wide variety of genres and moods and include movie trailers, sports highlights, lifestyle and travel videos, viral videos, and more. Loop Media’s streaming services generate revenue from programmatic and direct advertising, and subscriptions.
To learn more about Loop Media products and applications, please visit us online at Loop.tv
Follow us on social:
Instagram: @loopforbusiness
X (Twitter): @loopforbusiness
LinkedIn: https://www.linkedin.com/company/loopforbusiness/
Forward-Looking Statements / Safe Harbor Statement and Disclaimer
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, those relating to the offering, the satisfaction of the closing conditions of the offering, the closing of the offering, the amount and anticipated use of proceeds from the offering, Loop Media's expected performance, ability to compete in the highly competitive markets in which it operates, statements regarding Loop Media's ability to develop talent and attract future talent, the success of strategic actions Loop Media is taking, and the impact of strategic transactions. Forward-looking statements give Loop Media’s current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including "will," "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although Loop Media believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. Loop Media takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by Loop Media. Loop Media's Securities and Exchange Commission filings are available at www.sec.gov.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240531986724/en/
Loop Media Investor Contact
ir@loop.tv
Loop Media Press Contact
Jon Lindsay Phillips
loop@phillcomm.global
Source: Loop Media, Inc.
FAQ
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