Accretive acquisition broadens SilverBirch's foothold in video game
industry
TORONTO, April 28 /CNW/ - SilverBirch Inc. (TSX-V: SVB), a leading digital media company, today announced an agreement to acquire Lighthouse Interactive Game Publishing B.V., a Netherlands-based international video game publishing company with offices in Montreal, Toronto and London, England.
This immediately accretive acquisition is a first step in SilverBirch's stated strategy of building an integrated video game company. The acquisition will improve the fundamentals of SilverBirch by adding to both revenues and profitability of the company.
"The strategic significance of expanding into publishing can't be overemphasized," commented Derek van der Plaat, SilverBirch CEO. "Being a developer and a publisher will allow us to further diversify our revenue streams and capture a greater proportion of the video game industry value chain."
"The synergies between our two companies made the decision to become part of SilverBirch an easy one for us. This deal will help Lighthouse to further develop our business and access vertical market opportunities as we continue to expand the Lighthouse brand," said Steve Wall, Executive VP and co-founder of Lighthouse Interactive.
SilverBirch intends to acquire all of the outstanding shares of Lighthouse for a purchase price of up to CAD $4.0 million payable by way of $1.25 million in cash, a $400,000 vendor note, 3.85 million common shares of SilverBirch, and an earn-out based on fiscal 2008 financial performance. The transaction is subject to further due diligence and formal approval of the TSX Venture Exchange and SilverBirch board.
In other business, the company announced the cancellation and return to treasury of 500,000 common shares held in escrow for ZIM Corporation, due to that company's inability to deliver a customer forming part of the July 2007 asset purchase. The Board has also approved the deferral of the previously announced Hip Pocket debenture financing following mutual agreement to allow that company to gain more customer traction before revisiting a funding discussion with its principals.
About SilverBirch Inc.
Toronto-based SilverBirch Inc. is a fully integrated developer, publisher and distributor of high quality interactive media content and, through its Jambo Mobile division, provides mobile marketing and direct-to-consumer mobile content. In addition, the company is a multi-platform video game developer and operates an MMORPG (massive multiplayer online role-playing game) game called Metin 2 (see www.metin2.us). For more information, please visit www.silverbirchstudios.com and www.jambomobile.com.
About Lighthouse Interactive Games
Lighthouse Interactive is a fast growing publisher of interactive entertainment with offices established in Toronto and Montreal, Canada, Haarlem, The Netherlands and London, England. The company is focused on bringing strong titles to the worldwide market in a wide array of genres including: RPG, Simulation, Adventure, Action and Strategy. Staffed with industry veterans, Lighthouse is the right choice for developers looking to bring their products to a worldwide audience. For more information please visit: www.lighthouse-interactive.com.
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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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