Loop Media (LPTV) Strengthens Balance Sheet

Loop Media, Inc. (NYSE American: LPTV) (“Loop Media”), the free streaming television media company for businesses which provides over 2 billion video views every month via restaurants, retail businesses, office buildings, doctors’ offices, airports, bars and college campuses, has converted approximately $4.4 million of short-term debt and accrued interest into 6,005,487 shares of Loop Media common stock, at a conversion price of $0.74 per share – a premium to the closing price of Loop Media’s common stock on NYSE American on September 11, 2023 of $0.535 per share. In addition, Loop Media has also rolled over approximately $2.3 million of short-term indebtedness due in September 2023 into Loop Media’s $4.0 million line of credit due in May 2025. These steps are intended to help shore up Loop Media’s balance sheet as it moves forward into its new fiscal year starting October 1, 2023, by eliminating $4.4 million of indebtedness on the balance sheet and moving $2.3 million of short-term debt into long-term debt. These transactions eliminate 6.7 million of short-term debt from Loop Media’s balance sheet, which constitutes a majority of Loop’s short-term debt.

“Last week, we held an extensive board session, annual budget meeting and business review for the challenges experienced over the last few quarters, as well as the business plan and expectations for fiscal 2024, and despite a challenging 2023, I am confident in Loop Media’s business model and management team. To evidence that confidence and to further support our business and all shareholders and other stakeholders, I have gladly agreed to support Loop and improve its debt position by converting a significant amount of debt due to myself and affiliated parties into equity as well as extending other short-term debt into longer term debt.” said Bruce Cassidy, Chairman of Loop Media, Inc. “While the recent declines in our share price is not a welcomed development, I am confident in the fundamentals of the business, the overall opportunity and the steps being taken by management to reduce costs and strengthen the business as we seek to maintain and improve growth,” Mr. Cassidy continued.

“We appreciate the support of our Chairman and the rest of our board after their review of our growth plans for the coming year. Our team intends to focus on implementing our business plan and continue to seek opportunities to grow our business while focusing on strengthening the bottom line,” said Jon Niermann, CEO and Co-founder. “We believe that fiscal year 2024 will provide some unique opportunities for us, and that through the implementation of our business plan, we can achieve both top and bottom line growth.”

In addition to the conversion of debt into equity and extending the due date of certain of our short-term debt, Loop Media has further tightened cost control and has identified certain areas for further reductions in our SG&A for fiscal 2024, all while maintaining our commitment to the growth of its revenue and platform distribution. Senior Management of Loop Media is dedicated to the business and its stakeholders and has agreed to significantly reduce their salaries for the time being. In addition, no management bonuses will be paid for fiscal 2023 and several cost centers will be reduced in size while sales, revenue and marketing will continue to aggressively expand and push forward with the strategic plans where it makes sense to do so.

On September 12, 2023, Loop Media and Excel Family Partners, LLLP (“Excel”) entered into a Note Conversion Agreement, pursuant to which Excel agreed to convert $4.4 million of short-term debt, including interest, under the Loop Media non-revolving line of credit agreement entered into on April 25, 2022 (the “Excel 2022 Debt"), into 6,005,487 shares of Loop Media common stock at a per share price of $0.74. Loop Media and Excel also entered into a Pay Off Letter Agreement on September 12, 2023, pursuant to which Loop Media paid off $2.27 million of short-term debt plus accrued interest due September 28, 2023, under Loop Media’s secured non-revolving line of credit loan agreement, entered into on May 31, 2023 (the “Excel 2023 Debt”). Excel agreed to convert this amount into longer term debt due May 10, 2025, under the secured non-revolving line of credit loan agreement entered into on May 10, 2023, between Loop Media and various lenders, including Excel (the “2025 LOC”). As a result of these transactions, the $6.7 million in principal and interest aggregate indebtedness under the Excel 2022 Debt and the Excel 2023 Debt will be extinguished and indebtedness under the 2025 LOC will be increased by $2.27 million. Under the terms of the 2025 LOC, Excel will also be issued a warrant to purchase 209,398 shares of Loop Media common stock. The warrant has an expiration date of May 10, 2026, and is exercisable immediately at an exercise price of $4.33 per share. After these transactions, outstanding principal amount of indebtedness under the 2025 LOC will be $3.17 million.

The offer and sale of the securities described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the securities issued in the private placement and the shares of common stock underlying the warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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