Quickflix rights issue undersubscribed by $1.5m

Online movie rental company Quickflix (ASX:QFX) closed its latest rights issue with undersubscriptions of more than $1.5m, but has already arranged to place the shortfall

Online movie rental company Quickflix (ASX:QFX) has revealed its recent non-renounceable rights issue closed undersubscribed by over $1.5 million.

The company placed 56.4 million new shares at $0.03 per share in the rights issue, raising nearly $1.7 million. But a shortfall of 50.2 million shares was incurred.

Quickflix said it had commitments from shareholders and new investments regarding the replacement of the shortfall allocation.

All shares, including the shortfall, will be allotted and issued to investors on October 28.

The rights issue is the latest in a series of Quickflix fundraising initiatives. The company raised $650,000 in August via a private placement at $0.045 per share.

In May, it called a meeting to ratify the April placement of $1.4 million in new shares.

Quickflix had a cash outflow before financing of $700,000 for the June quarter, but increased its customer receipts 18% to $2.23 million.

QFX shares ended the trading day unchanged at $0.031.

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