TV giant HBO invests $AU10m in Quickflix
'Hug it out b***h' downunder
Ambitious Australian IPTV company Quickflix has secured an international investment coup with a $AU10 million cash infusion from Home Box Office (HBO).
The investment will give the Time Warner subsidiary a strategic stake in the ASX listed Quickflix.
HBO will also appoint a representative to the Quickflix board.
Quickflix founder and executive chairman Stephen Langsford said “we welcome HBO as a strategic investor in our Company. Quickflix is achieving strong subscriber growth and we’re rapidly rolling out our streaming service. The funds from HBO’s investment will enable Quickflix to execute its strategy for growth and profitability.”
The investment deal follows Quickflix’s recent licensing agreement with HBO for the streaming of TV series and films in Australia.
Under the terms of the investment agreement HBO will invest $10 million in Quickflix in exchange for 83.3 million preference shares at a price of 12 cents per share which are convertible to ordinary shares equating to a fully diluted interest of 15.7 per cent on conversion.
The deal is subject to ASX and shareholder approval and the board of Quickflix recommended to shareholders to vote in favour of the investment by HBO and intend to vote any shares held by them in favour of the investment by HBO. ®