The Board and Committees Take Options in Lieu of Cash Compensation
TORONTO, Nov. 6 /CNW/ - SilverBirch Inc. (TSX-V:SVB), a leading digital entertainment company, today announced it has signed an agreement with Aberdeen Gould Capital Markets Ltd. (Aberdeen Gould) to be their exclusive advisory firm. In addition, it has agreed on the compensation for the new and existing incumbents of the Company's Board of Directors for Fiscal 2009.
Aberdeen Gould will provide exclusive financial, M&A, management advisory and other consulting services, as required, to SilverBirch. The term of the agreement is for 2 years and the Company will pay a monthly fee of $5,000 plus G.S.T. Aberdeen Gould has agreed to accrue and defer the monthly fees payable without interest for a 6 month period. In addition to Aberdeen's cash compensation, they have been granted 1,000,000 irrevocable options at $0.10 for a three year period to vest in accordance with the terms and conditions of the Company's Stock Option Plan. This agreement is subject to TSX Venture Exchange final approval.
Aberdeen Gould's settlement of shares for the $45,000 owed by SilverBirch has received TSX Venture Exchange approval. In lieu of cash, Aberdeen Gould will receive 562,500 SilverBirch units priced at $0.08. Each unit consists of one common share and one half Common Share purchase warrant of the Company. Each whole Warrant will entitle the holder to acquire one additional Common Share at a price of $0.18 per share for 2 years from closing.
Pursuant to the recommendations of the Compensation Committee, cash compensation for board and committee participation is temporarily deferred. However, options to purchase common shares of the corporation have been granted at a strike price of $0.10 per share, being $0.02 higher than the closing price on the date of board approval (November 4, 2008). The Board Chairman is to receive 725,000 options, which also compensates for sitting on three standing committees, the Chair of the Audit committee will receive 525,000 options, which also cover membership of the Disclosure and Governance committee, the Chair of the latter is to receive 600,000 options, to include Compensation and Audit committee attendance, and the Chair of the Compensation committee receives 450,000 options. All of the above grants vest in accordance with the terms and conditions of the Employee Incentive Stock Option Plan approved by the shareholders on May 27, 2008, and expire on November 5, 2013.
About SilverBirch Inc.
Toronto-based SilverBirch Inc. is a leading digital entertainment company operating in the fastest growing sectors of the video game market. The Company's video game operations include SilverBirch Studios, a video game developer; Red Mile Entertainment, a San Francisco based publisher of console games such as Heroes Over Europe and the exclusive worldwide license holder for Sin City; Lighthouse Interactive, a Netherlands-based publisher of PC games; and a co-venture with G4Box Inc. to operate licensed English language online multiplayer games. For more information see www.silverbirchinc.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release.
%SEDAR: 00020946E