Quickflix suspends ASX trading as troubled SVOD player looks to avoid insolvency
Troubled SVOD player Quickflix has again suspended trading in its shares on the stock market as it attempts a restructure and head off potential financial insolvency.
The company, which in its last market update on June 30 reported it had lost $1.096m in the last quarter and had only $913,000 in cash on hand, today told the ASX that the purpose of the restructure was for “Quickflix to become a viable and sustainable business in which losses from its existing consumer business are significantly curtailed or eliminated.”
At the time it was suspended Quickflix shares were valued a $0.001 giving the company a market capitalisation of just $2.2m.
The announcement also said Quickflix would seek to address “the legacy issues of accumulating minimum guarantee obligations from SVOD licensing arrangements entered into several years ago that have not generated an adequate return for Quickflix and that are restricting the Company’s ability to secure necessary new funding.”
Back in June the company announced it had restructured some $5m in licensing arrangements with the movie studios.
“Quickflix is in discussions with SVOD licensors to seek relief from existing obligations and their co-operation in restructuring the company,” it said in its announcement.
The company also noted that its DVD business remained profitable and that it was continuing to look for partnerships in Asia despite just two weeks ago announcing it will no longer proceed with the acquisition of a Shanghai-based Chinese content company.
“The board has also identified new enterprise partnering opportunities to leverage its platform and operating expertise to deliver branded and white-label streaming services into other marketers, particularly Asia.”
Nic Christensen
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0.001 dollars, guys. 0.001 cents would be $0.00001
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Thanks for flagging MOG,
Now corrected.
Cheers
Nic – Mumbrella
They’re now claiming a “restructure?”….ROFL.
The only remarkable thing is that they made it into the new FY, and even then you’d question as to how. Quicker it’s shut down the better.
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…co-operation ion restructuring… typo?
…obligations from from SVOD … typo?
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Clearly their definition of insolvency differs from most
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Hi Jamie,
Yes they were, thanks for flagging.
Cheers,
Alex – editor, Mumbrella
Duncan obviously does not use quickflix, but it’s great, you can order DVD’s so you always have one to watch on the big screen when your ready and the streaming service is fantastic to watch on the small screen. Most DVD stores are closed or closing – quickflix is the only service where you get both for a decent price. Great for families
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