Quickflix not finished with capital raising
Quickflix founder and chief executive Stephen Landsford says capital raising for the company is not yet complete.
Last year the DVD rental and online streaming company intended to raise $5.7 million but only brought in $650,000 from investors.
The main investors in the most recent capital raising included Langsford family members according to ASX documents, with Mr Langsford increasing his stake to 130.3 million shares – an increase from 4.97% to 7.18% shares in the company.
Paddy Buckley, managing director of Quickflix’s New Zealand branch, declined to comment, saying that it is a matter that doesn’t affect Quickflix NZ.
Quickflix shares last traded at $0.002, down from $0.014 a year ago.
Both the Australian and New Zealand online streaming markets are beginning to heat up; Spark’s [NZX:SPK] Lightbox launched last year, Netflix has flagged a March launch date in both countries while Sky TV’s [NZX:SKT] Neon is experiencing a delayed launch.
But Mr Langsford is confident Quickflix will keep up.
“Quickflix is an established business, we have existing customers presently through online video rentals and also streaming which is generating revenue for us, so we have a degree of flexibility about how we approach customer acquisition,” he told Mumbrella.
“There is definitely competition in this quarter but a lot of that will be above the line advertising. I believe and we have said that will boost awareness amongst the category.”
Quickflix’s latest annual report in June 2014 says paying customers increased by 21% to 122,000 across New Zealand and Australia.