Quickflix Raises $1.6m, New Rival Emerges
The funds raised will be applied to working capital, investment in content and marketing to accelerate the Company’s growth strategy, Quickflix said in a statement.
The share purchase plan offered existing shareholders new shares at a 20% discount, at $0.01 each. The Perth based company issued 160,825,600 new shares, as a result.
It comes after some recent tumult among disgruntled shareholders over the future direction of the company.
Management were “encouraged” by the high level of interest from existing shareholders that were keen to take up more than the Share Purchase Plan maximum of $15,000.
An additional $27,000 has been raised from existing shareholders.
“We are pleased with the interest and positive response from our shareholders towards the growth strategy and prospects of our Company through their participation in the Share Purchase Plan,” commented Stephen Langsford, CEO of Quickflix.
“Interest in the streaming sector is building and Quickflix as a brand and proposition with extensive device coverage is very well positioned to take advantage of growing consumer demand.”
The news comes as Nine Entertainment Co transferred over 91 million shares from Quickflix to Stream Co, its new JV with Fairfax. Stream Co, due to hit in 2015 will now be a direct competitor with Quickflix.
Fairfax and Nine Entertainment will invest $50 million each into the new on-demand online content venture.