Streaming / DVD rental company Quickflix announced a trading halt to the Australian Securities Exchange yesterday.
The move “pending release of an announcement regarding Quickflix Ltd entering into a material commercial agreement in relation to its streaming service” comes as media speculates that Foxtel / Seven Presto may be staging a buyout.
Quickflix had a market capitalisation of close to $70 million in 2012 but was worth just $1.8 million before the trading halt.
CNET reports the company recently posted $850,000 in cash losses and a total paying customer base of 123,553 -more than 70 percent of which were accessing streaming alone or streaming alongside DVD rental.
Nine last year bought a minority stake in Quickflix, paying $1 million for redeemable preference shares held by US production giant HBO. The investment included a warrant requiring the owner of the shares to be paid $10 million if anyone launches a full takeover of Quickflix. Bruce Gordon of WIN Corporation, is also a Quickflix shareholder.
Source: Aust Financial Review