8-K: Loop Media to Delist from NYSE American Following Low Share Price

Loop Media, Inc. has decided to delist its common stock from the NYSE American due to a low share price, and will now trade on the OTC Pink Market.

Summary

• Loop Media, Inc. received notice from the NYSE American on August 8, 2024, that it was being delisted due to its low share price.
• The company had the option to appeal the delisting but chose not to.
• On August 15, 2024, the NYSE American filed a Form 25 with the SEC to officially delist Loop Media's stock.
• The delisting is expected to be effective ten days after the Form 25 filing.
• The deregistration of the company's stock is expected to be effective 90 days after the Form 25 filing, or sooner if the SEC determines.
• Loop Media's common stock began trading on the OTC Pink Market on August 9, 2024, under the ticker symbol LPTV.
• There is no guarantee that the stock will continue to trade on the OTC Pink Market.

Sentiment

Score: 2

Explanation: The document details a significant negative event for the company, the delisting from a major exchange, and the move to the OTC Pink Market. This indicates a lack of investor confidence and a poor outlook.

Negatives

• Loop Media's stock is being delisted from the NYSE American due to a low share price.
• There is no guarantee that the stock will continue to trade on the OTC Pink Market.

Risks

• The company's stock may not continue to trade on the OTC Pink Market.
• The delisting from the NYSE American could negatively impact investor confidence.
• The company's low share price is a significant concern.

Future Outlook

The company's stock will trade on the OTC Pink Market, but there is no guarantee it will continue to do so. The company has made forward-looking statements regarding the eligibility of the company's common stock for quotation on the OTC Pink Market, but these statements involve risks and uncertainties.

Management Comments

• The company has notified the NYSE American of its decision not to pursue an appeal of the delisting determination.

Industry Context

Delisting from a major exchange like NYSE American can be a significant setback for a company, often indicating financial difficulties or a failure to meet listing requirements. Moving to the OTC Pink Market is generally seen as a step down, with less stringent listing requirements and potentially lower trading volumes.

Comparison to Industry Standards

• Companies that fail to maintain a minimum share price on major exchanges often face delisting, which is a common occurrence.
• The move to the OTC Pink Market is a typical path for companies that have been delisted from major exchanges.
• Other companies that have faced similar delisting issues include those with prolonged periods of low share prices or financial instability.

Stakeholder Impact

• Shareholders will likely experience a decrease in the value of their investment due to the delisting.
• The company's reputation may be negatively impacted.
• The move to the OTC Pink Market may reduce the liquidity of the stock.

Next Steps

• The delisting from the NYSE American will become effective ten days after the Form 25 filing.
• The deregistration of the company's stock will become effective 90 days after the Form 25 filing, or sooner if the SEC determines.

Key Dates

Keywords

delisting, NYSE American, OTC Pink Market, low share price, Form 25, deregistration, LPTV