Shares in Quickflix Limited
(ASX:QFX) slumped 62 per cent yesterday as the movie rental company addressed fears a major investor could be preparing to flee.
Responding to media speculation Quickflix yesterday denied US content provider and cable network, HBO, plans to abandon the company and force Quickflix to repay a $10 million investment before the end of this year.
Quickflix says it is incorrect to suggest the recent exodus from its board constitutes a liquidation event which will give HBO the right to redeem its funds within 40 days.
Instead, Quickflix has stated its board and management have the full support of its investor HBO to execute its restructuring plan announced to the market last week.
Shares in Quickflix slumped 62.5 per cent on Monday to close at $0.021.
Quickflix posted a net loss of almost $14 million in the 2012 financial year.
