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No Quick fix for Quickflix

No Quick fix for Quickflix

Shares are currently selling for $0.30 on the ASX – a 46% fall.

The company also released a statement today refuting “incorrect statements” the Australian Financial Review said about the company’s liquidity position following changes to the board of Directors and that HBO could force the video content company to repay a $10 million investment it made.

“Recent changes to the company’s board does not constitute a liquidation event and the company confirms it has since received HBO’s acknowledgement that even if such a right existed it could not enforce it,” the company said today.

Quickflix confirms that the board and management have the “full support of its investor HBO to execute the restructuring plan” as announced last week.

Quickflix has moved to stem its blood flow by slashing a third of its workforce as its global search for an outside investor continues.

The online video and movie rental company said in an ASX-statement that it expects to provide details about funding arrangements. The company requested a trading halt last month ahead of an announcement on a “new strategic investor and a capital raising”.

However an agreement has not materialised even though the company said it is still in discussions with potential investors.

Doubt over the viability of the company has spread, following the resignation of several key board members including HBO executive Henry McGee, deputy chairman (and former Telstra exec) Justin Milne and CEO Chris Taylor (CDN, Nov. 22).

Founder Stephen Langton, who is to take on the CEO role in March, told advertising trade journal B&T the embattled business, which racked up a net loss of $13.97 million in 2012, is retrenching around 20 staff in a bid to cut hefty overheads, following an increased investment in technology.