Quickflix boss defends $5.5m share capital raising and signals shift in marketing strategy

Stephen Langsford, the chief executive of DVD rental and online streaming company Quickflix, has defended a new capital raising, announced yesterday, saying the $5.5m will be used for more marketing and invested in greater content for the service.

This is third time in a year the company has gone to market for equity funds. In November last year the company faced a cashflow crisis, which saw the share price collapse from 0.05 cents to 0.013 cents, and then it had a second injection of $1.7m from the Crede Capital Group in March.

Langsford told Mumbrella the capital raising, which will be down in two rounds, is being done to position the company for growth and to fund a new round of marketing.

“The reason we are doing this is for growth,” said Langsford, “”We are in a now great position to do more marketing and invest in more content.”