Quickflix raises $775,000 to compete against Netflix

Actor Andrew Lincoln of The Walking Dead

Quickflix has raised $775,000 in a share placement to be used as working capital and to further develop its streaming platform.

The 387,344,222 fully paid ordinary shares were taken up at 0.2 cents a share by “professional and sophisticated” investors.

This is a fall from the 0.3 cents a share placement late last year which raised $720,000, but was well short of the $5.7 million target.

“Interest is growing in the streaming sector as is appreciation of Quickflix’s strong positioning in
the market,” says CEO Stephen Langsford.

Quickflix, which still has a large customer base using its DVD library, last week announced a deal to allow its customers access with Foxtel-Seven West’s Presto.

This means Quickflix can continue to offer DVDs on subscription and premium video on demand but gradually drop its general all-you-can-eat streaming content which will be replaced by Presto’s offering.

Presto will gain a new market of viewers who are still to move from DVDs to streaming.

Quickflix recorded a 6% increase in paying customers to 123,553 in the March quarter. However, profits have been elusive. The local service saw its losses more than double to $8.592 million for the half year to the end of December.

Its shares fell to 0.1 cents a share from 0.2 cent on news of the latest placement.

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