Film and TV streaming service Quickflix has raised $1.8 million from Australian and international institutional investors, placing 204.2 million shares at 0.9 cents per share.

The funds will provide working capital and increased investment in content and marketing, the company told the ASX.

Quickflix also announced Los Angeles-based David P. Smith, a former VP of 20th Century Fox Television Distribution, is joining the board as a non-executive director. Smith also serves as a consultant to Quickflix on securing Hollywood content.

The board has hired corporate advisers Cashel Corporate Finance to help evaluate strategic options for the company.

In the March quarter, the service’s paying customers rose by 16% to 118,557 and revenues were up 9% to $5.2 million. It reported cash outflow of $1.3 million and had $3.8 million cash in the bank.

Chairman/CEO Stephen Langsford tells IF he has not heard from a small dissident group of US-based investors since a shareholders meeting which they did not attend.

Guaranty Finance Investors, which represents about 4.6% of the ordinary shares, had called for the removal of the board and the election of four new directors.  

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