Streaming service Quickflix raises $775,000 for ‘working capital’ in latest investment round

QuickflixQuickflix has raised $775,000 from “professional and sophisticated” but unspecified investors as it looks to bolster its cash position following its latest capital raising.

The troubled video streaming company put its shares in a trading halt earlier this week as it sought a much needed capital injection from the market.

In a statement the company said the funds would be used for working capital and for the “continued development of the company’s streaming service and working capital”. Last week it announced it was dumping much of its own streaming operation, instead becoming a reseller of rival service Presto’s content,

News of the company’s cash injection comes just a month after its accounts showed it is losing around $850,000 a quarter, with just $1.26m in cash on hand.

The shares went to professional investors at 0.002 cents, a discount on the 0.003 cents Quickflix was trading at before the capital raising took place.

The identity of the investors has not been revealed, but the raising happened in a “private placement”.

In a statement CEO of Quickflix Stephen Langsford said: “We are pleased with the level of investor interest for the placement.

“Interest is growing in the streaming sector as is appreciation of Quickflix’s strong positioning in the market.”

An earlier capital raising in late 2014 saw senior executives in the company invest heavily but raise just $650,000 of a potential $5.2m sought from the sharemarket.

Quickflix’s share price has been boosted in recent weeks from 0.001 cents to 0.003 cents today giving the company a market capitalisation of $5.73m

Nic Christensen 


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