Subscription Video on Demand player Quickflix is in a trading halt this morning as it seeks more cash to play in the increasingly competitive space.
The Australian company told the Australian Securities Exchange today that it would make an announcement about a capital raising on or before 21 May.
At this stage the details of the raising are not know, however, the last time it attempted to raise cash on-market through a renounceable entitlement offer at the end of last year it was left with a heavy shortfall.
It was attempting to raise $5.7 million before costs, but only managed to raise $650,000.
It was subsequently able to place just $67,000 though a placement of the shortfall shares.
Quickflix recently announced that it would become a re-selling agent for fellow SVOD player Presto, however, the commercial terms around the terms are not yet known.
Presto told AdNews that it was merely seeking a re-selling arrangement and not a further tie-up, saying a residual rights deal with Stan owner StreamCo did not put it off any deal.
StreamCo currently holds about 91 million preference shares in Quickflix, with the conditions of the deal meaning that those options could be paid out at 12c each in the event of a takeover.
This would mean that if Quickflix was taken over, StreamCo could stand to gain about $10.5 million, which would be an extra cost for anybody wishing to take over the company.
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