Perth-based online movie streaming and DVD rental provider Quickflix has completed a share placement and board restructure with the appointment of a new non-executive director and new corporate advisers.
The company has raised $1.8 million through the placement of 204.2 million shares to sophisticated and institutional investors, valued at 0.9 cents per share.
Quickflix said the cash raised would be applied to working capital as well as investment in content and marketing to accelerate its growth strategy.
Meanwhile, former Twentieth Century Fox Television Distribution vice-president David Smith has been announced as Quickflix’s new non-executive director.
Quickflix said Mr Smith's 20 years’ experience in licensing and acquiring content for subscription and transactional services, including for internet, cable, satellite, broadband and mobile platforms, would be a great asset to the company’s strategic growth initiative.
“David is a respected Hollywood executive who has deep industry knowledge relevant to Quickflix and who has insight into US and global content trends,” Quickflix founder and chief executive officer Stephen Langsford said.
“We look forward to his contribution as Quickflix pursues its growth strategy based on having the most device coverage, best content and best partners to reach new customers.”
Mr Smith’s role at Fox also included representing the company on the boards of premium pay movie services Showtime, Telecine and LAPTV, and was also previously a finance and strategic planning executive of Walt Disney company.
Quickflix said the appointment of Mr Smith introduced relevant global industry expertise to the board and was part of its continuing commitment to ensure shareholders were represented by a board of individuals who enhance long-term prospects of the company.
Mr Smith will also serve as a consultant to Quickflix to secure licensing of Hollywood content.
Along with the share placement, Quickflix has appointed Cashel Corporate Finance to assist with evaluating strategic options for the company.
Quickflix noted that the media and entertainment industry is rapidly increasing its interest in streaming and over the top content delivery.
The company last traded at 1 cent per share and is still on a trading halt as of 1:00pm WST.
