Quickflix Successfully Completes Capital Raising
Quickflix Limited (ASX: QFX), Australia’s leading online movie subscription company, announced today that it had successfully completed a $2M capital raising through a combination of a private placement (completed in June) and a subsequent rights issue both priced at 5 cents. The rights issue received strong support with 64 per cent of entitlements taken up and the balance raised through underwriting by existing shareholders.
The new capital raised will enable the Company to increase existing strong momentum in subscriber growth. Quickflix will this month launch a new campaign with retail giant Harvey Norman in which a Quickflix subscription offer will be bundled with sales of DVD and Blu-ray players throughout its network of 190 stores.
Quickflix will also shortly announce the launch of an innovative campaign with a major FMCG brand utilising social networking media. These new campaigns add to ongoing promotional activity across a range of channel partners including Virgin Mobile, Big W and iiNet which is driving new subscriber uptake.
Quickflix subscriber and revenue growth outlook continues to be strong. Quickflix achieved 17 per cent growth in paying subscribers in the six months to June this year and is targeting to improve on this growth rate in the current six month period.
About Quickflix
Quickflix is Australia’s largest independent online movie subscription company with a choice of over 37,000 film, TV series, documentary and sporting titles across 400 genres in DVD and high definition Blu-ray formats.
Quickflix delivers rental DVDs to anywhere in Australia free of charge (next day in most major cities) and there are no late fees or return deadlines. Since commencement Quickflix has delivered over five million DVDs and now delivers almost two hundred thousand DVDs each month.
Quickflix has over 30,000 paying subscribers and its subscriber base grew by 17 per cent in the six months to June 2009.
Quickflix (QFX) was listed on Australia Securities Exchange in 2005.
Classified Ad Ventures, through its investment arm, CAV Investment Holdings, has taken a 4.8% stake in the ASX listed online DVD rental site, QuickFlix. This investment was part of the $750,000 capital raising just completed by the company and was announced in June.
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