Economy

Quickflix lives to stream another day with $775,000 cash injection; Former financial consultant banned for life after £70 million fraud case: Midday Roundup

Kye White /

Troubled streaming service Quickflix has come out of its latest trading halt with a $775,000 lifeline from investors.

Quickflix issued a statement to the Australian Securities Exchange yesterday to announce it had completed the placement of nearly 390,000,000 shares at 0.2 cents each to raise the cash from “professional and sophisticated” – but unnamed – investors.

The capital injection will be used for the “continued development of the company’s streaming services”, chief executive Stephen Langsford said in the statement.

It’s been an eventful week for the troubled company, which has struggled to gain a substantial share of Australia’s booming streaming market in recent months. Aside from two trading halts, Quickflix also entered an agreement to merge content with rival streaming service Presto.

Former financial consultant banned for life after £70 million fraud case

Former broker and consultant Jeffrey Revell-Reade has been permanently banned from providing financial services in Australia by the Australian Securities and Investments Commission after being convicted in relation to a £70 million fraud in the UK.

Revell-Reade is serving a jail sentence of nine-and-a-half years in the UK after being convicted last year of “masterminding” a scheme that saw unwitting investors fund his extravagant lifestyle.

More than 1000 investors were caught up in the elaborate “boiler scheme” which allowed Revell-Reade to buy luxury yachts, take private jet trips and amass wine collections.

ASIC Commissioner John Price said in a statement the permanent ban was made to ensure Revell-Reade does not take advantage of local consumers and investors should he return to Australia.

“Mr Revell-Reade’s involvement in the serious fraud in the UK was motivated by greed and demonstrates a clear lack of integrity,” Price said.

“ASIC’s ban protects Australian consumers. It will prevent him from ever working in financial services in Australia again.”

Shares up on open

Aussie shares are trading slightly higher this morning off the back of jump in global oil prices and a record close from the S&P 500.

Ric Spooner, chief market analyst for CMC Markets, said in a statement the economic optimism ignited earlier in the week had dampened by this morning.

“The question of when and how fast the US Federal Reserve begins to lift interest rates remains the dominant macro issue for equity markets and will be front of mind for traders again today,” Spooner said.

“Last night’s jump in oil prices is also likely to see some support for energy stocks today. However, moves may be relatively limited given that the rally in oil prices appeared related to optimism over the Fed rather than any reassessment of the supply situation in the oil market.”

The S&P/ASX200 benchmark was up 3.7 points to 5666 points at 11:51am AEST. On Thursday, the Dow Jones was up 0.34 points to close at 18,285.74 points.

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Kye White

Kye began his career at a Fairfax daily on the North-West Coast of Tasmania. He has since taken his belongings, and keen interest in technology, to Melbourne. He has a bachelor of Arts majoring in Political Science from the University of Tasmania and a Graduate Diploma in Journalism from RMIT University.

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