Quickflix raises more cash

Quickflix shares resumed trading on Thursday after a two-day halt as the Australian streaming and online DVD rental company announced it had raised A$775,000 (US$612,000) from new investors.

The private placement to “professional and sophisticated investors” will be completed on or near May 27, the company told the Australian Securities Exchange (ASX).

It said the funds raised would be used for the continued development of its streaming service and working capital.

Reached in Los Angeles, Quickflix chairman and CEO Stephen Langsford would not specifically say that the money would fund the technical upgrade to facilitate its resale agreement with Presto Movies and Presto TV.

But he told C21 the deal to replace Quickflix’s streaming service with Presto content was proceeding and that he was confident the company would meet conditions set by Foxtel. He was not 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,” Langsford told the ASX.

Langsford added that he was excited by the new TV shows unveiled at the LA Screenings: “There is some fantastic new content across the board, including some that will suit streaming services.”

He indicated that he was acquiring content from studios and networks for Quickflix’s transactional VoD service.