Agreement with Hip Pocket Mobile initiates SilverBirch strategy targeting
high margin vertical markets
TORONTO, Feb. 19 /CNW/ - SilverBirch Inc. (TSXV:SVB) announced today that it has reached an agreement with Hip Pocket Mobile Inc. to provide up to $100,000 in convertible debenture financing to the company to grow its mobile real estate lead generation business in the USA.
Hip Pocket Mobile is a Toronto-based mobile services company that has developed a unique mobile application to provide homebuyers with instant property details on their mobile devices while the associated leads are captured, stored and tracked by sales representatives to increase broker revenue. Hip Pocket Mobile's clients include Bank of America, Royal LePage, RE/MAX, Intercounty Mortgage, Casa America, ERA Real Estate and Better Homes.
"This partnership is a first step for SilverBirch to target mobile vertical markets where we believe we can secure leadership positions," said Derek van der Plaat, CEO of SilverBirch. "Now that we have completed our technology acquisitions and have a full mobile enablement platform, we will leverage these assets to generate strong margins and sustainable long term value for SilverBirch shareholders."
"There are more than 100,000 real estate owner/brokers in the USA that form our target market," adds Paul Gerard, Chief Executive Officer of Hip Pocket Mobile. "It's a $1.6 billion market that is urgently looking for more efficient technology solutions."
Under the agreement, SilverBirch can convert its debenture into Hip Pocket common shares at the rate of 1.4% for each $10,000 in debt converted. SilverBirch also has an option to acquire 51% of the common shares of Hip Pocket, based on a one times revenue multiple, by issuing common shares of SilverBirch to Paul Gerard, Hip Pocket's major shareholder. There is no finder's fee to be paid. The transaction is subject to the approval of the TSX Venture Exchange.
About SilverBirch Inc.
Toronto-based SilverBirch Inc. is a leading digital media company focused on the fastest growing sectors of the video game and mobile markets. Operating companies include Jambo Mobile Solutions, a fully integrated mobile media company with capabilities in mobile messaging and mobile content delivery, and SilverBirch Studios, a multi-platform video game developer and operator of an MMORPG (massive multiplayer online role-playing game) called Metin2 (see www.metin2.us). For more information, visit www.silverbirchstudios.com and www.jambomobile.com.
About Hip Pocket Mobile Inc.
Hip Pocket Mobile is a Toronto-based IVR and mobile services company focused on providing the real estate industry with the sales advantages of instant text messages combined with an interactive voice response system. For more information please visit www.text-ed.com.
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.
%SEDAR: 00020946E