Quickflix shares resumed trading on Thursday morning after a two-day halt as the company announced it has raised $775,000 from new investors.
The private placement to “professional and sophisticated investors" will be completed on or about May 27, the company told the ASX.
It said the funds will be used for the continued development of its streaming service and working capital.
Reached in Los Angeles, chairman/ CEO Stephen Langsford would not specifically say the money will fund the technical upgrade to facilitate its re-sale agreement with Presto Movies and Presto TV.
However he told IF the deal to replace Quickflix’s streaming service with Presto content is proceeding and he’s confident the company will meet conditions set by Foxtel. He isn’t yet willing to reveal the timing of the transition.
“The recent agreement entered into with Foxtel Presto is a very positive development for the company, bolstering content while also improving operating economics,” he told the ASX.
Langsford is excited by the new TV shows unveiled at the LA Screenings, observing, “There is some fantastic new content across the board, including some that will suit streaming services.”
While he is not ready to announce any deals, he indicated he is acquiring content from studios and networks for Quickflix’s transactional VOD service.
The fund raising involved the placement of 387,344,222 fully paid ordinary shares at 2 cents per share.
In the quarter ending March 31, the company reported a 6% increase in paying customers to 123,553 and a net cash outflow of $850,000 on stable revenues of $5 million.