Quickflix may be talking up its incumbent position in the subscription video in demand (SVOD) space, but it would seem that its investors aren't listening to the rhetoric.
It was seeking to raise $5.7 million before costs through a renounceable entitlement offer, however the raising window closed with Quickflix only able to secure a shade over $650,000, roughly 11% of what it was seeking.
Given the shares are worth 0.03c and the company was seeking to put another two billion shares onto the exchange, it was perhaps not a surprise shareholders weren't keen to play a role in the further dilution of their stock.
Quickflix said in an on-market statement that it was now seeking to place the rest of the shortfall within three months.
It is currently trying to raise cash for content acquisition and marketing.
With SVOD competition heating up, with players such as Presto, Stan, and Netflix entering the market next year, sources have indicated to AdNews that the price of SVOD content in Australia has steadily increased as a function of demand.
Quickflix CEO Stephen Langsford previously told AdNews that it would seek to step up its below-the-line marketing efforts next year in response to the increased competition.
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