Quickflix completes $2.5m capital raising

Online movie rental company Quickflix has announced a $2.5 million capital raising to supplement a recent $10 million equity deal with Time Warner subsidiary Home Box Office.

The Perth-based company said it had successfully completed a $2.5 million placement to local and overseas institutional investors, priced at 11.5 cents per share.

The announcement follows last week's deal with HBO, which saw the US media giant offer to buy just over 83 million Quickflix shares at 12 cents per share and appoint a representative to the Quickflix board.

Quickflix said the funds from both capital raisings would be applied to rolling out its digital streaming service and building subscribers through advertising and promotion.

The placement was undertaken by Sydney's Foster Stockbroking.

At 12:15PM WST, Quickflix shares were down 4 per cent, at 12 cents.