Quickflix plans $3.2m rights issue

DVD rental service Quickflix has announced plans for a $3.2 million non-renounceable rights issue and hopes to use the funds to invest in marketing the company.

Shares under the rights issue will be offered at 3 cents per share.

In a statement to the Australian Securities Exchange, Quickflix said the offer price represents a discount of approximately 33 per cent from the company's day volume weighted average closing price yesterday.

Quickflix expects to issue approximately 106,659,422 shares.

"Quickflix is in a position to build on the significant growth achieved in the past year and expand into the mass consumer market," the statement said.