Quickflix raises $400k to fund Homescreen purchase

Online DVD rental company Quickflix Ltd has raised $400,000 in a placement of shares to institutional investor Cranport Pty Ltd to help fund its acquistion of competitor Homescreen.

Perth-based Quickflix yesterday announced the acquisition of its market rival, Homescreen, doubling the size of its subscriber base for a price of $580,000.

It also entered into an agreement with Publishing and Broadcasting Ltd to market its service on the ninemsn website shortly after listing earlier this year.

The full announcement on the capital raising is below.

Quickflix share placement

7 December 2005: The directors of Quickflix are pleased to announce that the Company has made a placement of 2,000,000 new shares to institutional investor, Cranport Pty Ltd at an issue price of 20 cents. The issue, which will raise $400,000 ("Placement"), will assist in the funding of Quickflix's acquisition of Homescreen Entertainment Pty Ltd (see announcement on 6 December 2005).

An Appendix 3B will be lodged following issue of the Placement shares.