Quickflix resumes trading on ASX, seeks to raise $A5.5m

UPDATE / Sept 11: Quickflix shares [ASX:QFX] have resumed trading on th ASX following an announcent the video streaming service will seek to raise $5.5 millon by issuing new shares.

The money will be used to add new content, and to retire debt.

In a filing with the Australian exchange, the company says it has 100,000 customers, and narrowed its net cash outflow to $A1 million in June.

The new shares are priced at 1c each.

Quickflix latest corporate snapshot values the company at $A9 million, based on a share price of 1.7 cents per share. Before a restructure in December 2012, the company's market cap was $A25 million.

Last week saw new competition for Quickflix in New Zealand, with Ezyflix expanding to this side of the Tasman.

Quickflix NZ managing director Paddy Buckley had no comment.

----------

UPDATE / Sept 5: Quickflix has filed with the ASX for a voluntary suspension of its listing. The filing says the suspension is related to capital raising. It anticipates it will be lifted on September 10.

Quickflix shares have been in a trading halt, which was due to expire today. The trading halt was also related to a capital raising exercise.

The past fortnight has seen a new competitor, Ezyflix, join the online content fray in Australia and, from today, New Zealand.

Sept 3: ASX-listed video streaming service Quickfix [ASX:QFX] is in a trading halt until Thursday, when a capital raising announcement will be made to the market.

In a preliminary financial filing to the Australian stock exchange on August 27, the company said it lost $A6.4 million on revenue that increased 10% to $A19.4 million in the year to June 30, 2013.

In the same period last year, Quickflix lost $A14 million.

The filing says Quickflix had $A2.3 million cash on hand as of June 30, 2013 down from $A5.7 million on June 30, 2012.

Quickflix was also put in a trading halt on December 3 last year amid a cash crunch, the departure of investor HBO from the board and the exit of CEO Chris Taylor.

The trading halt was lifted on December 19 as the company announced US investor Alki David had thrown the company a $A5 million lifeline.

Quickflix operates on both sides of the Tasman.

Last week, the company said it would expand its NZ presence through a new partnership with Freeview, which it says will launch within four months (Freeview has been talking up such a service since May last year, with Quickflix backing the move in December. Freeview shareholders TVNZ and Mediaworks have so far shown no enthusiasm, however).

Quickflix latest trading halt comes on the heels of a new entrant joining the Australian on-demand market: Ezyflix - majority owned by CEO Craig White, formerly sales director for 20th Century Fox Australia.

Quickflix NZ managing director Paddy Buckley told NBR ONLINE he had no comment on the trading halt.