Quickflix raises $1.7m from Crede Capital Group
DVD and online distributor Quickflix is raising almost $1.7 million from institutional investor Crede Capital Group.
"The company will use the proceeds from the placement for the continued development of its digital streaming service and to increase its subscriber base through increased marketing by way of advertising and promotion and for general working capital," the company said in a statement.
The $1.7 million funds will be raised via a share and option issue to subsidiary Crede CG II, Ltd.
Quickflix is continuing to burn through its cash reserves despite a near-death experience last year which prompted a restructuring. The company posted a $3.4 million net loss in the December 2012 half year compared to a $5.8 million loss in the prior corresponding period. However, the company's cash (and cash equivalents) fell to $1.75 million at December 31, 2012, from $5.72 million six months earlier.