Ann: Capital Raising and Board Appointment, page-11

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DVD rental and movie streaming business Quickflix has completed a $1.8 million capital raising, appointed a Hollywood executive to its board and signed on corporate advisers Cashel Corporate Finance as the company looks to reinvigorate its strategy in the fast changing media and entertainment industry.
The capital raising and new appointments come just three weeks after Quickflix shareholders shot down a proposal to spill its board and install foreign media executives at the company.
That proposal would have seen Quickflix’s board occupied by three US and British media executives, along with Matthew Joynes of the self-described turnaround firm Tournament Field, who wanted to restructure the company and ditch its DVD mail-out business.
If successful, Tournament Field said it would increase revenue to $150 million within five years.
At the time Quickflix co-founder and chief executive described Tournament Field’s attempted coup and agitation for a new strategy as a “distraction”.
But now Quickflix has brought in Cashel Corporate Finance as a fresh pair of eyes to look over the company’s strategy and to look for potential tie-ups with other media players.
“The board notes that the media and entertainment industry is rapidly increasing its interest in streaming and over the top content delivery and as a leading participant in this industry it is important that Quickflix is resourced to assess any corporate opportunities that arise to create value for shareholders,” Quickflix said in a statement to the Australian Securities Exchange.
The company has also appointed David Smith, a former vice president of Twentieth Century Fox Television Distribution, to its board.
Mr Smith comes to the board with more than 20 years of experience in licensing and acquiring content for subscription content services including over-the-top internet, cable, satellite broadband and mobile platforms.
The $1.8m in new funding was raised through the private placement of 204.2 million shares at 0.9c each from institutional investors.
Quickflix said the new funds would be used to invest in new content and marketing activities.
Quickflix, like the wildly popular US-based streaming service Netflix, launched as a DVD mail-out service 11 years ago but had struggled to get serious traction which had seen it described as the nation’s “oldest start-up”.
However, recent results have shown the company is growing. It reported a 16 per cent increase in paying customers to almost 119,000 in the March quarter, while revenue came in at $5.2m, an increase of 9 per cent on the previous corresponding period.