Business
SilverBirch Has Completed the Sale of Non-Core Business Unit Crossroad Mobile
Divestiture immediately reduces debt exposure and dilution by cancelling 1.8 million issued warra...
About this update from Silver Bull Resources, Inc.
[{"type":"text","content":"\n\n\n\nDivestiture immediately reduces debt exposure and dilution by cancelling\n1.8 million issued warrants\n\n\nTORONTO, Nov. 17 /CNW/ - SilverBirch Inc. (TSX-V: SVB), today announced\nit has completed the sale of its 60% stake in Crossroad Mobile, LLC. For\nnominal consideration, the assets and related liabilities have been\ntransferred back to the purchasers. Under the agreement, the effective closing\ndate is September 30, 2008.\n\n\nThe transaction will result in the elimination of just over $40K of debt\nin relation to a Secured Promissory Note and reduces further dilution for\nSVB's shareholder with the immediate cancellation of 1,800,000 warrants.\n\n\n"This transaction allows SilverBirch to remain focused on our core game\nassets: CrossFire, Metin2, and the console games developed and marketed by\nSilverBirch Studios, Lighthouse, and (x)Red Mile," said Kevin Astle, SilverBirch\ninterim President and CEO. "The new board of directors has moved swiftly and\ndecisively to re-position the company to capitalize on the potential of these\nassets for the benefit of all shareholders."\n\n\nThe divesture of this non-core business substantially completes the\nCompany's previously announced process of re-focusing on its core strengths in\nthe game industry. The Company's goal is to become a premier publisher and\nmarketer of Massive Multiplayer Online Games (MMOG) and video games for PCs\nand leading console platforms. This new strategic focus will build upon\nSilverBirch's existing operations, including video game developer SilverBirch\nStudios, Netherlands-based interactive entertainment publisher Lighthouse\nInteractive, and a co-publishing venture to operate licensed English language\nonline multiplayer games. The company is also acquiring (x)Red Mile\nEntertainment, publisher of console games Sin City and Heroes Over Europe, in\na deal expected to close in early 2009, subject to shareholder, legal and\nregulatory approvals.\n\n\nSilverBirch has recently initiated a restructuring plan that is expected\nto deliver significant savings and drive profitable revenue and growth.\nSilverBirch continues to review operations to further reduce costs and improve\nmargins to enable more strategic investment in online multiplayer games and\noriginal game content development.\n\n\nAbout SilverBirch Inc.\n\n\nToronto-bas...