Quickflix has received around $1.7 million in equity funding from Crede Capital and has begun a drawdown of loan funds from Gleneagle Securities, receiving around $860,000 of the first $1.5 million tranche.
However, Quickflix said in an ASX announcement that Gleneagle Securities had breached the facility terms by not providing the complete amount for the first tranche.
“On this basis Quickflix is entitled not to appoint [Gleneagle Securities to the board]. Gleneagle Securities contends that the non-appointment of their nominees represents a breach by Quickflix of its obligations, which the company rejects,” Quickflix said in a statement.
Quickflix said it would not pursue further funding from Gleneagle Securities.
The DVD rental and online streaming company told Computerworld Australia earlier this year that it is hoping to get the company to profitability by this year.
Revenue at the company increased 32.8 per cent in the half year to December 2012 to $9.8 million, driven by an increase in the average monthly number of paying customers.
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