Latest addition will create one of Canada's leading video game companies
TORONTO, Oct. 9 /CNW/ - SilverBirch Inc. (TSX-V: SVB.V), a leading digital media company, today announced that it has signed its merger agreement with Red Mile Entertainment, Inc. Red Mile is a California-based video game publisher with worldwide rights to established brands and intellectual properties including the "Heroes" flight combat franchise. Heroes of the Pacific sold over 600,000 copies and the sequel, Heroes Over Europe is expected to ship in March of 2009.
"We are on track in building a multi-platform world-wide video game publishing presence," commented Derek van der Plaat, CEO of SilverBirch. "Red Mile is expected to contribute meaningful revenues and cashflow in this fiscal year."
The boards of directors of both companies have approved the merger agreement; however the transaction is still subject to TSX-V exchange approval, US regulatory and Red Mile shareholder approval and is expected to close in January of 2009.
In other news, the Company is pleased to announce that the book of orders for the $500,000 financing at $0.08 per unit is completed and expected to close on or about October 10, 2008. In addition, pursuant to employment agreements arising from the Lighthouse Interactive acquisition, the Board of Directors have now approved grants of Stock Options to the former principals of Lighthouse, totalling 300,000 options to acquire common shares of the corporation at a strike price of $0.28. The options expire on July 8, 2013 and are granted in accordance with the Employee Incentive Stock Option plan approved by shareholders on May 27, 2008.
About SilverBirch Inc.
Toronto-based SilverBirch Inc. is a leading digital media company operating in the fastest growing sectors of the video game and mobile markets. The company's video game operations include SilverBirch Studios, a mobile and handheld video game developer, Lighthouse Interactive, a publisher of interactive entertainment based in the Netherlands, and a co-venture with G4Box Inc. to operate licensed English language online multiplayer games. In its mobile division it provides mobile marketing services through Jambo Mobile Solutions and mobile content by way of an investment in CrossRoad Mobile. For more information see www.silverbirchinc.com.
Cautionary Notes:
As noted above, completion of the transaction is subject to a number of conditions, including but not limited to, acceptance by the TSX Venture Exchange. The transaction cannot close until the required approvals have been obtained. There can be no assurance that the transaction will be completed as proposed or at all.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this news release. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of the content of this news
release.
Forward-Looking Statements - Certain information set forth in this news release contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are based upon management's expectations, assumptions and beliefs, which may prove to be incorrect. These forward-looking statements are subject to numerous risks and uncertainties, which may cause actual results to differ materially from results expressed or implied by such forward-looking statements. These risks and uncertainties, certain of which are beyond management's control, include completion of the proposed transaction, the impact of general economic conditions, industry conditions, and currency fluctuations. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
ContactsDerek van der PlaatChief Executive Officer
SilverBirch Inc.
Tel: (416) 621-6711 Ext 34
Email: derek@silverbirchinc.com Paul Haber
SVP & Chief Financial Officer
SilverBirch Inc.
Tel: (416) 621-6711 Ext 35
phaber@silverbirchinc.com
78.40 (0.93%)
