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.
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
For further information: Derek van der Plaat, Chief Executive Officer,
SilverBirch Inc., Tel: (416) 621-6711 Ext 34, Email: derek@silverbirchinc.com;
Graham Lowman, CFO/Secretary, SilverBirch Inc., Tel: (416) 621-6711 Ext 23,
glowman@silverbirchinc.com
