Loop Media secures $700,000 through future receipts sale

Published 06/09/2024, 10:18
Loop Media secures $700,000 through future receipts sale


BURBANK, CA – Loop Media, Inc. (the "Company"), a Nevada-based firm specializing in help supply services, has entered into a significant financial arrangement as disclosed in a recent SEC filing.


On August 27, 2024, the company signed an agreement with CFG Merchant Solutions, LLC ("Buyer") to sell its future receipts for a purchase price of $700,000. This transaction will provide Loop Media with immediate working capital, while the Buyer will receive $962,500 in future receipts from the company.


Under the terms of the agreement, Loop Media will remit a daily amount that constitutes 14.44% of its future receipts, commencing weekly starting around September 6, 2024. The weekly payment is set at $24,063, continuing until the full amount sold is repaid to the Buyer. To secure the transaction, Loop Media has granted CFG Merchant Solutions a security interest in certain company assets.


The agreement also includes a set of covenants that Loop Media must adhere to, including the provision of financial statements and immediate notification of certain events. The company is also restricted from creating additional liens on the collateral or disposing of assets outside the ordinary course of business without prior written consent from the Buyer.


In the event of a breach of the agreement, penalties will apply, which may include an additional charge of the greater of 5% of the undelivered amount sold at the time of the breach or $2,500.


This strategic financial move will impact Loop Media's cash flow and financial structure. The company, which has previously operated under the name Interlink Plus, Inc., is now engaged in a definitive agreement that reflects its ongoing efforts to manage its financial obligations and invest in its operational capabilities.


The details of this financial arrangement were outlined in a Form 8-K filed with the Securities and Exchange Commission on September 5, 2024, and the information is based on the statements made in this SEC filing.


In other recent news, Loop Media has secured a $525,000 subordinated loan from Agile Capital Funding, with a total repayment amount set at $756,000. The company's common stock has been delisted from the NYSE American due to the low selling price and has begun trading on the OTC Pink Market.


Loop Media reported a 26% drop in fiscal Q2 2024 revenue, standing at $4 million, and a decrease in gross profit margin to 10.4% from 29.4% in the previous year. Amid these developments, the company extended its loan agreement with GemCap Solutions to July 29, 2025, and added its subsidiary, Retail Media TV, 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. The company also announced plans to introduce several Free Ad-Supported Streaming TV (FAST) channels. These are among the recent developments shaping the strategic direction of Loop Media.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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