Loop Media, Inc. (NYSE American: LPTV), a company specializing in multichannel streaming and digital signage content, is set to be delisted from the NYSE American exchange.
The NYSE American LLC notified the company on Thursday that it would suspend trading of Loop Media's common stock and initiate delisting proceedings.
The action is due to the stock's persistently low selling price, which is in breach of the Exchange's continued listing standards.
Loop Media, known for providing a range of curated content including music videos, sports, and news to various business venues, has the right to appeal this decision.
The outcome of any appeal, however, remains uncertain. Following the suspension, Loop Media's stock is expected to start trading on the OTC Pink Current Market from today.
The formal notification from the NYSE American and additional details concerning the delisting process have been outlined in Loop Media's Current Report on Form 8-K, filed with the SEC today.
Loop Media operates Loop TV, a service that streams digital video content to locations such as bars, restaurants, and other venues across the United States, Canada, Australia, and New Zealand.
The platform offers one of the largest libraries of premium short-form entertainment, including music videos and movie trailers, and generates revenue through advertising and subscriptions.
Loop Media reported a 26% drop in fiscal Q2 2024 revenue, standing at $4 million, and a fall in gross profit margin to 10.4% from 29.4% in the previous year. This financial downturn was accompanied by substantial leadership changes, including the departure of co-founder Jon Niermann as CEO.
InvestingPro Insights
Amidst the recent delisting notice, Loop Media, Inc.'s financial health and market performance indicators provide additional context for investors. InvestingPro data reveals a challenging financial landscape for Loop Media. The company's market capitalization has dwindled to $6.28 million, reflecting the market's valuation of the company in light of its current challenges.
InvestingPro Tips highlight several critical concerns for Loop Media. Firstly, the company is quickly burning through cash, which is a worrying sign for its operational sustainability. Analysts also predict a decline in sales for the current year, which could further strain the company's financial position. Moreover, Loop Media's stock has experienced significant volatility, with a notable price drop over the last week, indicating investor concerns and a potential lack of confidence in the company's short-term prospects.
From a valuation perspective, Loop Media is trading at a low revenue valuation multiple, suggesting that the market is attributing a lower value to each dollar of Loop Media's sales compared to other companies in the industry. This could be due to the company's negative revenue growth, which InvestingPro Data shows at -36.46% for the last twelve months as of Q3 2024. The gross profit margin stands at 40.18%, which, while indicative of a relatively healthy markup on goods or services, may not be sufficient to offset other financial challenges.
Investors looking for more detailed analysis and additional InvestingPro Tips can find them on InvestingPro's dedicated page for Loop Media, with a total of 15 tips currently listed. These tips provide deeper insights into the company's performance and future outlook, which could be crucial for making informed investment decisions in light of the recent delisting news.
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