Loop Media, Inc. Secures $525K Loan from Agile Capital Funding, LLC - Key Details and Analysis
Loop Media, Inc. has recently entered into a subordinated business loan and security agreement with Agile Capital Funding, LLC, securing a $525,000 loan. This deal, as per a recent 8-K filing with the Securities and Exchange Commission, involves weekly repayments starting from September 2, 2024.
Under the terms of the agreement, the total repayment amount is set at $756,000, 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.
Loop Media has agreed to provide the Lender with a security interest in specific properties and assets, with the loan being subordinated to certain senior indebtedness of the Company. The agreement also includes various covenants and negative covenants to protect the Lender's interests.
In other news, Loop Media has experienced challenges, with its common stock being delisted from the NYSE American and a drop in revenue and profit margin. Despite these setbacks, the company is working on strategic initiatives like introducing Free Ad-Supported Streaming TV channels to expand its reach.
InvestingPro Insights reveal that Loop Media is facing financial difficulties, with a negative P/E ratio and high price volatility in its stock. The company's debt burden and cash burn rate indicate the need for the recent loan. Analysts do not expect the company to be profitable this year.
While the loan from Agile Capital Funding provides necessary capital, investors should consider the company's financial indicators before making investment decisions. For a deeper analysis of Loop Media's performance and outlook, InvestingPro offers comprehensive tips to help investors stay informed.
In conclusion, Loop Media's recent loan agreement and financial challenges highlight the importance of thorough analysis before investing in the company. Stay informed with InvestingPro's insights to make smart investment decisions.