Business
SilverBirch to Acquire Red Mile Entertainment, Holders of the "Heroes" Flight Combat Franchise License
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About this update from Silver Bull Resources, Inc.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.\n\n\nNEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES\n\n\nDESCRIBED HEREIN/\n\n\nAcquisition to further round out SilverBirch offering in the video game\n\n\nindustry\n\n\nTORONTO, July 2 /CNW/ - SilverBirch Inc. (TSX-V: SVB), a leading digital\nmedia company, today announced an agreement in principle to acquire all of the\noutstanding shares of Red Mile Entertainment, Inc. (OTC BB: RDML), a\nCalifornia-based video game publisher with worldwide rights to established\nbrands and intellectual properties including the "Heroes" flight combat\nfranchise.\n\n\nRed Mile, an NASD OTC Bulletin Board listed company, has developed and\npublished a number of successful console and PC titles including Heroes Of The\nPacific, which sold over 600,000 units. Current projects in development\ninclude a sequel, Heroes Over Europe, which is anticipated to be released in\nearly 2009, and another highly anticipated licensed title, for which the\ncompany will seek a co-publishing partner.\n\n\n"Red Mile's position as a strong console publisher of both original and\nlicensed IP complements our core focus in the video game industry," commented\nDerek van der Plaat, CEO of SilverBirch. "With our publishing capability in\nMassive Multiplayer Online Games (MMOGs), PC and handheld games, the\nacquisition of Red Mile further rounds out SilverBirch's capability as a\ncomprehensive publisher."\n\n\n"SilverBirch's strategy to grow through strategic acquisitions is a\nvision that Red Mile shares and one that we can contribute to in a meaningful\nway to position the combined entity as a leading integrated video game\npublisher," added Chester Aldridge, CEO of Red Mile.\n\n\nRed Mile is expected to contribute over $7 million in revenue and roughly\n$2 million in EBITDA starting in 2009. SilverBirch has advanced a bridge loan\nof $750,000 CAD dollars to Red Mile as part of the acquisition terms, and will\nalso issue seven-eighths of one SilverBirch share from treasury in exchange\nfor each Red Mile share, plus an earn-out based on future revenue targets.\nCurrently 16,544,461 Red Mile shares and warrants qualify for the transaction,\nwhich equates to 14,476,403 new Silverbirch shares. The transaction is subject\nto regulatory ...