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Firm Commitments Have Been Secured
TORONTO, Oct. 6 /CNW/ - SilverBirch Inc. (TSX-V:SVB) (the "Corporation") is pleased to announce that it has engaged Aberdeen Gould Capital Markets Ltd. ("AGM") to provide $500,000 of financing through a private placement of SilverBirch's equity. Firm commitments have been secured and closing is anticipated on or around October 10, 2008.
The private placement offering is 6,250,000 units priced at $0.08, for gross proceeds of $500,000. Each unit will consist of one (1) common share (the "Common Shares") and one half (1/2) Common Share purchase warrant (a "Warrant") of the Corporation. Each whole Warrant will entitle the holder to acquire one (1) additional Common Share at a price of $0.18 per share for 2 years from closing. Upon closing the $500,000 equity raise, SVB will have fulfilled escrow conditions and will receive $1,300,000 of the $2,000,000 raised through a Secured Note offering announced last week on October 1, 2008.
The bulk of the funds raised have been allocated to the launch of the much anticipated English version of its Multiplayer Online First Person Shooter Game called CrossFire. CrossFire has been a tremendous success in other operating regions such as China, Japan, Korea and Vietnam. The game has reported over 500,000 concurrent online users since its commercial launch in Asia. The Corporation has the English language publishing rights for North America and the United Kingdom. SVB's commercial launch of the English version will take place before year end. (see http://cf.g4box.com).
The Corporation will pay a finder's fee of 7% cash, plus 8% Compensation Option to Aberdeen Gould Capital Markets Ltd. ("AGM") as finder. Each Compensation Option entitles the holder to purchase one common share of the Corporation at a price of $0.08 for 2 years from Closing. There are no assurances that the private placement will close. The transaction set out herein is subject to approval from the TSX Venture Exchange.
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.
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, including the amount and actual completion of the private placement 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. SilverBirch does not undertake to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
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