Loop’s Rough Year Gets Worse; Asks For Restraining Order To Block Sale Of Its Assets By Main Lender
November 14, 2024 by Dave Haynes
A year that one might describe as, umm, turbulent just keeps dishing it out for digital out of home media company Loop Media, which makes a streaming news and entertainment channels , as well as basic digital signage capabilities, available to businesses.
There were layoffs in the spring, most of the leadership team was walked off the plank and then Loop was delisted from the NYSE American exchange and converted to an over-the-counter stock, because of weak financials.
And now LA-based Loop has filed an application in court for an Emergency Temporary Restraining Order to block its senior lender from trying to sell off some company assets as remedy to defaults on loans.
This stuff is over my head, so I will refer you to what Loop says in a press release:
Loop Media, Inc. (“Loop Media” or “Loop” or the “Company”) (OTC: LPTV), a leading multichannel streaming CTV platform that provides curated music videos, sports highlights, news, premium entertainment channels, digital signage and select live sports and other channels for businesses nationwide, reported that today, November 13, 2024, it became aware of the public announcement by its senior lender, GemCap Solutions, LLC (“GemCap”), of a public sale of the Company’s personal property in order to foreclose the security interest it holds in and to the assets of the Company. This action is in relation to ongoing negotiations between Loop and GemCap regarding an alleged default of the Company under its loan agreements and comes despite the Company’s ongoing efforts to resolve the issue amicably and despite the Company continuing to make regularly scheduled payments to GemCap in accordance with the terms of the loan documents.
In response to this action, on November 13, 2024, the Company filed an Application for an Emergency Temporary Restraining Order and Preliminary Injunction against GemCap to prevent GemCap from exercising or continuing to exercise any of its default remedies, to stay the Secured Party Public Sale of collateral set for December 5, 2024, and to order GemCap and all persons or entities acting in concert with it to cease any and all public disclosures, articles, press releases, interviews and announcements related to the Company.
Loop Media will vigorously defend itself and will take all actions necessary to protect its assets, its employees and its partners and to continue its mission to bring value to its shareholders.
GemCap, in a separate press release, says it will be running a secured party public sale on Dec. 5th that will see collateral sold to the highest and best bidder, for cash
The Secured Party is conducting the Public Sale to foreclose the security interest held by the Secured Party in and to substantially all of the personal property assets LOOP MEDIA, INC., a Nevada corporation, and RETAIL MEDIA TV, INC., a Nevada corporation, jointly and severally (the “Borrower”) including, without limitation, (i) inventory (“Inventory”), (ii) accounts receivable (“Accounts Receivable”), (iii) certain machinery and equipment owned by the Borrower all as set forth on the schedule prepared by Secured Party (collectively, the “FF&E”), (iv) all of its patents, trademarks and trade names, including “Loop”, “Loop Media”, “Music News Loop”, and “Retail Media TV”; domain names owned by Borrower, including www.loop.tv; and the Borrower’s customer list (collectively, the “Intellectual Property”), and (v) trade fixtures (“Trade Fixtures”). The Inventory, Accounts Receivable, FF&E, Intellectual Property and Trade Fixtures are collectively referred to as the “Public Sale Collateral”.
The Secured Party is conducting the Public Sale to foreclose the lien and security interest held by the Secured Party in and to the Public Sale Collateral. At the Public Sale, all of Borrower’s right, title and interest in and to the Public Sale Collateral will be sold “as is” and “where is” and the Secured Party shall make no representation or warranty, either express or implied, relating to title, use, quiet enjoyment, possession, merchantability or fitness for a particular purpose, completeness, condition or the like, all of which are hereby disclaimed, in the sale or disposition of the Public Sale Collateral. In addition, the Public Sale Collateral is being sold (i) free and clear of Secured Party’s liens and any subordinate security interests, and (ii) without recourse to Secured Party, its attorneys and representatives. The Public Sale of the Public Sale Collateral, if made, shall be to the highest and best bidder.
The medium that puts ad-supported content on screens in defined locations like bars, restaurants, fitness clubs and salons has been around for a couple of decades now, and it is STILL not easy to make a go of it – even though the capital and operating costs are a fraction of what they were even 10 years ago.
I was sitting in a departure lounge at Orlando’s airport yesterday morning, watching Reach TV – a streaming service which is focused on airports. I saw the same content pieces over and over, and no ads – just interstitials I assume were placeholders for ads. I was sitting at a gate with no assigned flights, because it was quiet, and I could just barely hear the audio. Not a great service.
Advertising networks always looks so easy to do, but are so hard to pull off.
I don’t wonder why ad-supported OOH networks get into trouble…It’s hard to know IF advertisers will be interested… but to build-out an AD-supported network without first lining up recurring revenue commitments is a recipe for failure. Retail and Restaurants are good markets. Someone (else) will likely end up with the assets and might do just fine.