BURBANK, Calif. - Loop Media, Inc. (NYSE American: LPTV), a prominent provider of curated streaming content for businesses, has initiated a registered direct offering of its common stock. The company disclosed its plans to sell approximately 9.65 million shares at $0.15 each, aiming to close the transaction around June 3, 2024, pending standard closing conditions.
In a simultaneous private placement, a company director agreed to purchase roughly 4.35 million shares at $0.2309 per share. Roth Capital Partners is serving as the sole placement agent for this offering.
The anticipated gross proceeds from this offering are projected to be around $2.45 million. After accounting for placement agent fees and other estimated expenses, the net proceeds will be used for working capital and operational funding.
Shares in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws, and thus are subject to restrictions on resale in the United States. However, Loop Media plans to register these shares for resale under a registration statement with the SEC.
This announcement follows the company's effective shelf registration statement on Form S-3 with the SEC. Prospective investors can obtain copies of the final prospectus supplement and accompanying prospectus from the SEC's website or directly from Roth Capital Partners upon release.
Loop Media specializes in delivering a mix of music videos, sports, news, and entertainment channels through its Loop TV service, catering to various out-of-home venues across the United States, Canada, Australia, and New Zealand. The company generates revenue through advertising and subscriptions.
The press release from which this information is derived does not constitute an offer to sell or a solicitation of an offer to buy any of the securities mentioned and is based on a press release statement.
InvestingPro Insights
Loop Media, Inc. (LPTV) has recently made headlines with its new stock offering, but what do the numbers say about the company's financial health and market performance? According to InvestingPro data, the company's market capitalization stands at a modest $16.43 million. This figure reflects the company's total market value as of the last twelve months leading up to Q2 2024 and is an essential indicator for potential investors looking at the size of the company. Additionally, the company's revenue has experienced a significant decline of 40.71% during the same period, signaling challenges in sales growth.
InvestingPro Tips highlight some areas of concern for investors. Loop Media is quickly burning through cash and analysts expect a sales decline in the current year. Moreover, the stock has shown high price volatility, which could be a red flag for risk-averse investors. These insights suggest that while the company may be actively seeking to raise capital for operational funding, potential investors should be aware of the financial risks associated with this stock.
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