Filed Pursuant to Rule 424(b)(5)
Registration No. 333-268957
PROSPECTUS SUPPLEMENT
(To Prospectus dated January 11, 2023)
Loop Media, Inc.
7,875,000 Shares of Common Stock
Pre-Funded Warrants to Purchase up to 1,777,174 Shares of Common Stock
1,777,174 Shares of Common Stock Underlying the Pre-Funded Warrants
We are offering 7,875,000 shares of our common stock, par value $0.0001 per share, pursuant to this prospectus supplement and the accompanying prospectus. The offering price for each share of common stock is $0.15.
We are also offering pre-funded warrants to purchase up to an aggregate of 1,777,174 shares of common stock, in lieu of shares of common stock, to those purchasers whose purchase of shares of common stock in this offering would result in the purchaser, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock following the consummation of this offering. Each pre-funded warrant will be exercisable for one share of common stock at an exercise price of $0.0001 per share. The offering price for each pre-funded warrant is $0.1499, which is equal to the offering price per share of common stock less $0.0001. Each pre-funded warrant will be exercisable upon issuance and will expire when exercised in full. This prospectus supplement and the accompanying prospectus also relate to the offering of the shares of common stock issuable upon exercise of the pre-funded warrants.
In a concurrent private placement (the “Private Placement”), we are also selling pre-funded warrants to purchase an aggregate of 4,347,826 shares of common stock (the “Private Placement Pre-Funded Warrants”) to an affiliate of one of our directors. The purchase price for each Private Placement Pre-Funded Warrant is $0.2308. The Private Placement Pre-Funded Warrants and shares of common stock issuable upon exercise of the Private Placement Pre-Funded Warrants are not being registered under the Securities Act of 1933, as amended (the “Securities Act”), are not being offered pursuant to this prospectus supplement and the accompanying prospectus and are being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act and Rule 506(b) promulgated thereunder. The gross proceeds from the Private Placement are expected to be $1,003,478.24.
Our common stock is listed on the NYSE American LLC, or NYSE American, under the symbol “LPTV.” The last reported sale price per share of our common stock on the NYSE American on May 30, 2024 was $0.2309. There is no established public trading market for the pre-funded warrants, and we do not expect such a market to develop. In addition, we do not intend to apply to list the pre-funded warrants on any national securities exchange or other nationally recognized trading system. Without an active trading market, the liquidity of the pre-funded warrants will be limited.
The aggregate market value of our common stock held by non-affiliates pursuant to General Instruction I.B.6 of Form S-3 is $14.8 million, based on 42,539,427 shares of common stock held by non-affiliates and a price of $0.349 per share, the last reported sale price per share of our common stock on the NYSE American on April 23, 2024. During the 12-calendar month period that ends on, and includes, the date of this prospectus supplement, we have not sold any securities pursuant to General Instruction I.B.6 of Form S-3.
We have engaged Roth Capital Partners, LLC, or the placement agent, as our exclusive placement agent in connection with this offering. This offering is being conducted on a reasonable “best efforts” basis, and the placement agent has no obligation to buy any of the securities from us or to arrange for the purchase or sale of any specific number or dollar amount of securities. We have agreed to pay the placement agent a cash fee equal to 6.5% of the aggregate gross proceeds raised in this offering as set forth in the table below. See “Plan of Distribution” beginning on page S-17 of this prospectus supplement for more information.
Investing in our securities involves a high degree of risk. Please see the section entitled “Risk Factors” beginning on page S-7 of this prospectus supplement as well as the other information included in or incorporated by reference into this prospectus supplement and the accompanying prospectus for a discussion of factors that you should consider carefully before making an investment decision.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
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|
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Per Share of
Common Stock
|
|
|
Per Pre-Funded
Warrant
|
|
|
Total
|
|
Offering Price
|
|
|
|
$ |
0.15 |
|
|
|
|
$ |
0.1499 |
|
|
|
|
$ |
1,447,648.38 |
|
|
Placement Agent fees(1)
|
|
|
|
$ |
0.00975 |
|
|
|
|
$ |
0.00975 |
|
|
|
|
$ |
94,108.70 |
|
|
Proceeds, before expenses, to us(2)
|
|
|
|
$ |
0.14025 |
|
|
|
|
$ |
0.14015 |
|
|
|
|
$ |
1,353,539.68 |
|
|
(1)
We have also agreed to issue to the placement agent warrants to purchase shares of common stock equal to 5% of the aggregate number of shares of common stock and pre-funded warrants issued in this offering and the Private Placement. See “Plan of Distribution” beginning on page S-17 of this prospectus supplement for additional information regarding compensation paid to the placement agent.
(2)
The amount of the offering proceeds to us presented in this table does not give effect to any exercise of the pre-funded warrants being issued in connection with this offering and does not include proceeds from the Private Placement or the exercise of the Private Placement Pre-Funded Warrants.
Delivery of the shares of our common stock and pre-funded warrants being offered pursuant to this prospectus supplement and the accompanying prospectus is expected to be made on or about June 3, 2024, subject to satisfaction of customary closing conditions.
Roth Capital Partners
The date of this prospectus supplement is May 31, 2024.