Business
SilverBirch Announces US$2.0 Million Financing
Funds to be used for the launch of CrossFire and for general working capital purposes TORONTO, Oc...
About this update from Silver Bull Resources, Inc.
[{"type":"text","content":"\n\n\n\nFunds to be used for the launch of CrossFire and for general working\ncapital purposes\n\n\nTORONTO, Oct. 1 /CNW/ - SilverBirch Inc. (TSX-V: SVB), a leading digital\nmedia company, today announced that it has closed the offering of US$2 million\nsenior secured term notes with Third Eye Capital Corporation acting as agent.\nUS$1.3 million was advanced yesterday and an additional US$700,000 will be\nadvanced subject to the successful acquisition of Red Mile Entertainment Inc.\nby the Company.\n\n\n"This funding will allow us to properly launch our CrossFire game in the\nnext 45 days which we expect to drive substantial revenues and strong cashflow\nfor our 2009 fiscal year." commented Derek van der Plaat, CEO of SilverBirch.\n\n\nThe Company also provides the following general business guidance:\n\n\n- Management is comfortable with analyst consensus revenue forecast of\n approximately Cdn.$19 million for the fiscal year 2009; and\n\n- Metin2 simultaneous concurrent user count now exceeds 2,500 and\n CrossFire now exceeds 500,000 simultaneous users worldwide.\n\n\nThe net funds advanced by note holders will be held in escrow pending the\ncompletion by the Company of its Cdn. $500,000 non-brokered private placement\nfinancing. There is no assurance that the Company will be able to complete the\nprivate placement which is also subject to TSX Venture Exchange approval.\n\n\nThe notes offered have a term of eight months, unless extended at the\noption of Third Eye for an additional four months, bear interest at 1% per\nmonth during the first 6 months of their term and 1.5% per month thereafter\nuntil maturity. The notes are secured against the assets of the Company and\ncertain subsidiaries. Agency fees of US$220,000 were paid to Third Eye on the\nclosing of the offering of the notes. In addition, the Company has issued\n3 million warrants allowing the note holders to acquire one common share in\nthe Company for each warrant at an exercise price equal to Cdn. $0.10.\n\n\nThe party that introduced the Company to Third Eye will be paid a fee\nequal to 3% of the gross proceeds in the debt financing and granted one year\nbroker warrants equal to 3% of the securities subscribed for in the debt\nfinancing.\n\n\nAbout SilverBirch Inc.\n\n\nToronto-based SilverBirch Inc. is a leading digital media company\noperating in the f...