Loop Media Inc. filed SEC Form 8-K: Events That Accelerate or Increase a Direct Financial Obligation, Financial Statements and Exhibits
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Item 2.04 Triggering Events that Accelerate or Increase a Direct Financial Obligation Under an Off-Balance Sheet Arrangement.
As previously reported in the Current Report on Form 8-K filed by Loop Media, Inc., a Nevada corporation (the “Company”), on October 24, 2024, the Company issued a Convertible Promissory Note to the Joseph G. Bellino Trust Dated November 30, 2023 (the “Holder”), in the principal amount of $2,000,000.00 on October 18, 2024 (the “Issue Date”).
On October 29, 2024, the Company received a notice and reservation of rights letter (the “Notice”) from its senior lender (the “Senior Lender”) under its revolving loan facility in existence prior to the Issue Date (the “Revolving Loan Facility”) informing the Company that events of default have occurred and are continuing under the Revolving Loan Facility as a result of the Company’s incurrence of indebtedness that was not expressly subordinated to the Company’s indebtedness to the Senior Lender pursuant to a subordination agreement in form and substance satisfactory to the Senior Lender.
Prior to receipt of the Notice, as previously reported, the Company had been in negotiations with the Senior Lender to reach an agreement on the terms of the subordination agreement, and the Company is continuing its efforts to resolve the issue.
Failure to come to terms with the Senior Lender may cause the Company to continue to be in default with the Senior Lender, which would allow it to pursue its remedies as the senior secured lender. As previously reported, such a default could also trigger cross-defaults under certain other loan agreements and the possible acceleration of such indebtedness.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| Date: November 4, 2024 | LOOP MEDIA, INC. | |
| By: | /s/ Justis Kao | |
| Justis Kao, Chief Executive Officer | ||