Online streaming service provider Quickflix has requested a trading halt for at least a month so it can undertake a restructuring program aimed at reducing costs, raising funds and attracting new customers.
In a statement today, Cottesloe-based Quickflix said it was being burdened by licensing arrangements for streaming video on demand (SVOD), and would spend the next month seeking new funding and implementing cost-savings initiatives.
“Fundamental to the restructuring is that Quickflix is able to address the legacy issue of accumulating minimum guarantee obligations from SVOD licensing arrangements entered into several years ago that have not generated an adequate return for Quickflix,” the company said.
“It is restricting the company’s ability to secure necessary new funding.
Quickflix is in discussions with SVOD licensors to seek relief from existing obligations and their cooperation in restructuring the company so that it can continue to be a channel for distributing their content and providing competition in the marketplace,” it said.
The company also said it had found potential new partnering opportunities to bring its platform to other markets, particularly in Asia.
“The objective of the restructuring program is to enable Quickflix to become a viable and sustainable business in which losses from its existing consumer businesses are significantly curtailed or eliminated, whilst new revenue-generating opportunities are developed,” Quickflix said.
Quickflix will continue its streaming and DVD service for customers during the month-long trading halt.
