Divesture Inline with Exclusive and Strategic Focus on the Fast-Growing Gaming Sector
TORONTO, Nov. 12 /CNW/ - SilverBirch Inc. (TSX-V: SVB), today announced it has signed a non-binding letter of intent with Silverback Media Corp. to sell the assets and liabilities of Jambo Mobile Solutions Inc.. The proposed closing is scheduled for December 15, 2008 or at such earlier date as mutually agreed.
The divesture of this non-core business unit will allow the Company to focus on its core strengths and new business strategy in the gaming industry. The Company's primary goal is to become a premier operator and publisher of Massive Multiplayer Online Games (MMOG) and video games for PCs and leading console platforms. The new corporate focus initiated recently will build upon SilverBirch's existing operations including video game developer SilverBirch Studios, Netherlands-based interactive entertainment publisher Lighthouse Interactive, and a co-venture to operate licensed English language online multiplayer games. The company is also acquiring Red Mile Entertainment(x), publisher of console games Sin City and Heroes Over Europe, in a deal expected to close in early 2009, subject to shareholder, legal and regulatory approvals
SilverBirch has recently initiated a restructuring plan that is expected to deliver significant savings and drive profitable revenue and growth. SilverBirch continues to review non-core operations to further reduce costs, improve margins, and enable more strategic investment in online multiplayer games and original game content development.
The contemplated transaction will be subject to final due diligence and a Definitive Purchase and Sale Agreement executed by both parties. The closing will also be subject to approvals required from all necessary parties and regulatory bodies.
About SilverBirch Inc.
Toronto-based SilverBirch Inc. is a leading interactive 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.
About Silverback Media Corp.
Silverback Media Corp. is a global mobile solutions provider with operations in Toronto, Los Angeles, Miami, Montreal, Paris and Aix-En-Provence. Silverback is positioned at the leading edge of the next phase of the evolving e-marketing sector, and is transforming the personal, portable and pervasive nature of mobile devices into a revolutionary, potent advertising and marketing channel. Through its innovative integration of leading edge technologies and expertise, Silverback Media provides marketers with the ability to deploy high-performance interactive mobile communications campaigns that are fully-integrated and continuous with their online marketing initiatives in order to cost-effectively acquire and retain customers and generate brand recognition.
(x) The acquisition of Red Mile Entertainment is expected to close in
early 2009, subject to shareholder, legal and regulatory approvals.
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 management's assessment of future plans, contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond management's control, including the impact of general economic conditions, industry conditions, and currency fluctuations. 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.
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