US TV Group HBO, who invested over $10M into Australian movie hire Company Quickflix, appear to have walked away from the struggling Company days after its shares were suspended on the ASX.Last week Quickflix was placed into voluntary suspension with the Company indicating they were set to announce new investors. To date this has not happened.
Earlier today HBO executive Henry McGee announced he was quitting the Quickflix board and that he would not be putting himself forward for nomination in 2013.
ChannelNews understands that Quickflix, who is close to running out of cash, is trying to raise capital in an effort to stay afloat.
Back in July the movie on demand service said they had $5.7M in the bank; in their latest filing with the ASX the Company is now down to only $1.1M in the bank as of November. They have also admitted they are burning cash at $3.5M a quarter with observers claiming the Company could run out of money shortly.
In October the Company had $2.1M in the bank with insiders admitting they have been hunting for funding or a partner during the past six months with little success.
Prior to their suspension from the ASX the share price was trading down to sub $0.56 cents with the Company burning through $1.1M in cash in October alone.