 After halting share trading on Tuesday, Quickflix (QFX) today said it sold 204.2 million shares at 0.09c each to “sophisticated” private institutional investors.
The investment will be used to finance content and marketing initiatives to further the content streaming company’s growth strategy and to support other “strategic initiatives.”
Quickflix also announced a new hire to the board – LA based TV and movie exec David P Smith, a former director of Pay TV at 20th Century Fox. Smith will serve as a non-Executive Director and will also work as a consultant to Quickflix responsible for licensing Hollywood content, as owner of DPS Media Consulting.
His previous roles include Director of Pay Television at 20th Century Fox and VP Pay TV Sales & Channel Ops and has over 20 years of licensing content for over-the-top, cable and broadband platforms and was also a planning exec at Walt Disney.
The Perth-based company said the appointment would ensure “shareholders are represented by a board of individuals who can enhance the long term prospects of Quickflix”.
The announcements come after several shareholders revolted several weeks ago, calling for a new management team to be put in place and for the company to ditch its DVD mail order business. However, the proposal was rejected when put to a shareholder vote.
Today’s announcements are “positive for the company. We’ve secured more capital in support of our growth initiatives-including more device coverage, more content and more marketing channels,” Quickflix CEO Stephen Langsford told CN.
“David Smith who the company has known and worked with for some time is very well credentialed as an experienced studio executive in OTT licensing and distribution. His engagement to the board is all part of our ongoing strategy for growth.”
The company has also appointed Cashel Corporate Finance to evaluate strategic options and access any corporate opportunities that arise.
Quickflix shares resumed trading today at $0.010.
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