SCHEDULE 13G/A: Dreamcatcher LLC Reduces Stake in Loop Media, Inc. to Below 5%

Sentiment:

Beneficial Ownership Disclosure


Dreamcatcher LLC has filed an amended Schedule 13G, disclosing a reduced beneficial ownership stake of 4.68% in Loop Media, Inc.'s common stock.

Worse than expectedThe beneficial ownership percentage of Dreamcatcher LLC has decreased to 4.68%, indicating that a significant holder's stake has fallen below the 5% threshold, which could be interpreted as a negative signal or result of dilution.

Summary

  • Dreamcatcher LLC, based in Tennessee, has filed an Amendment No. 2 to its Schedule 13G regarding its beneficial ownership in Loop Media, Inc.'s Common Stock.
  • As of the event date of August 6, 2024, Dreamcatcher LLC beneficially owns 3,878,988 shares of Loop Media, Inc. Common Stock.
  • This ownership represents 4.68% of the Issuer's class of securities, based on 82,953,569 shares of Common Stock issued and outstanding as of February 3, 2025, as reported in Loop Media's Form 10-Q for the quarter ended December 31, 2024.
  • Dreamcatcher LLC holds sole voting power and sole dispositive power over all 3,878,988 shares.
  • The filing certifies that the securities were not acquired and are not held for the purpose of changing or influencing the control of Loop Media, Inc.
  • The current beneficial ownership reflects past corporate actions including the cash payment in full of the Issuer's convertible promissory note to Dreamcatcher LLC on May 9, 2022, a one-for-three reverse stock split effective September 20, 2022, and the automatic cashless exercise of warrants on September 26, 2022, in connection with a public offering.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the implied reduction in a significant holder's stake below the 5% threshold, which can be perceived as a lack of increasing confidence or a result of dilution, despite the filing being a routine disclosure.

Positives

  • The Issuer (Loop Media, Inc.) made a cash payment in full of its convertible promissory note to Dreamcatcher LLC on May 9, 2022, which reduces the company's debt obligations.

Negatives

  • Dreamcatcher LLC's beneficial ownership percentage has decreased to 4.68%, implying a reduction from a previous stake of 5% or more, which could be perceived as a significant holder reducing their position or being diluted.

Future Outlook

This filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance from Loop Media, Inc. or Dreamcatcher LLC regarding future operations or financial performance.

Industry Context

This Schedule 13G filing is a routine regulatory disclosure of a passive investment stake and does not provide specific insights into broader industry trends or competitive landscape for Loop Media, Inc.

Stakeholder Impact

  • Shareholders: Provides transparency regarding the ownership structure and changes in significant holdings, indicating a reduction in a major investor's stake below the 5% threshold.

Key Dates

DateDescription
2022-05-09Cash payment in full of Issuer's convertible promissory note to Dreamcatcher LLC.
2022-09-20Effective date of the one-for-three reverse stock split of Loop Media, Inc.'s Common Stock.
2022-09-26Automatic cashless exercise of warrants in connection with Loop Media, Inc.'s public offering.
2024-08-06Date of event which requires filing of this statement (beneficial ownership calculation date).
2025-02-03Date as of which 82,953,569 shares of Common Stock were issued and outstanding, used for beneficial ownership percentage calculation (as per Issuer's Form 10-Q for Q ended Dec 31, 2024).
2025-02-14Date of filing of this Schedule 13G Amendment No. 2.

Keywords

Loop Media Inc., Dreamcatcher LLC, Schedule 13G, Beneficial Ownership, Common Stock, SEC Filing, Shareholder Stake, Corporate Governance, Investment Disclosure

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