Quickflix raises $4.6m for Internet platform

Australian DVD rental service Quickflix this morning revealed it had raised over $4.6 million in funding through private investors, with the money set to be put towards the company’s growing expansion plans.

Quickflix provides Australian members with the opportunity to rent movies online, after which the company mails out the DVD that arrives at member’s homes within days. The company, which had been placed in a trading halt on the Australian Stock Exchange (ASX) until today’s announcement, has announced that they’ve managed to secure $4.675 million in funding through the private sale of 55 million ordinary shares at a price of 0.085 per share.

Quickflix said the funding, undertaken by E.L. & C. Baillieu Stockbroking and Foster Stockbroking, would provide it with the means necessary to expand its online operations — the team are hard at work, adding functionality which will allow the company to stream movies over the Internet to customers.

“The funds raised under this placement puts the company in a strong financial position and supplements existing cash reserves,” the company said in a statement announcing the funding today, noting that alongside the funding, “contributions from a growing subscriber base will be used to fund sustained growth and the roll-out of Quickflix’s digital launch”.

Last week, Quickflix announced a new deal with Sony that will see their yet-to-be-launched streaming service available across a range of Sony internet-enabled devices, including Sony Bravia internet-enabled televisions, SVIB-capable Blu-Ray players and home theater systems and Sony’s VAIO computer range.

“We’re operating in a exciting space and we have plenty of growth momentum. There are always alot of developments underway which are about positioning us for the future and building shareholder value,” chairman Stephen Langsford said two weeks ago.

It’s been a busy month or so for Quickflix, which also managed to acquire equipment and assets from rival Telstra, which announced it would be shutting down its BigPond DVD rental service on September 30. Quickflix has also added a new CEO, as well as a new board member over the course of the past several weeks.

Image credit: Quickflix