Firm Commitments Have Been Secured
TORONTO, Oct. 6 /CNW/ - SilverBirch Inc. (TSX-V:SVB) (the "Corporation")
is pleased to announce that it has engaged Aberdeen Gould Capital Markets Ltd.
("AGM") to provide $500,000 of financing through a private placement of
SilverBirch's equity. Firm commitments have been secured and closing is
anticipated on or around October 10, 2008.
The private placement offering is 6,250,000 units priced at $0.08, for
gross proceeds of $500,000. Each unit will consist of one (1) common share
(the "Common Shares") and one half (1/2) Common Share purchase warrant (a
"Warrant") of the Corporation. Each whole Warrant will entitle the holder to
acquire one (1) additional Common Share at a price of $0.18 per share for 2
years from closing. Upon closing the $500,000 equity raise, SVB will have
fulfilled escrow conditions and will receive $1,300,000 of the $2,000,000
raised through a Secured Note offering announced last week on October 1, 2008.
The bulk of the funds raised have been allocated to the launch of the
much anticipated English version of its Multiplayer Online First Person
Shooter Game called CrossFire. CrossFire has been a tremendous success in
other operating regions such as China, Japan, Korea and Vietnam. The game has
reported over 500,000 concurrent online users since its commercial launch in
Asia. The Corporation has the English language publishing rights for North
America and the United Kingdom. SVB's commercial launch of the English version
will take place before year end. (see http://cf.g4box.com).
The Corporation will pay a finder's fee of 7% cash, plus 8% Compensation
Option to Aberdeen Gould Capital Markets Ltd. ("AGM") as finder. Each
Compensation Option entitles the holder to purchase one common share of the
Corporation at a price of $0.08 for 2 years from Closing. There are no
assurances that the private placement will close. The transaction set out
herein is subject to approval from the TSX Venture Exchange.
About SilverBirch Inc.
Toronto-based SilverBirch Inc. is a leading digital media company
operating in the fastest growing sectors of the video game and mobile markets.
The company's video game operations include SilverBirch Studios, a mobile and
handheld video game developer, Lighthouse Interactive, a publisher of
interactive entertainment based in the Netherlands, and a co-venture with
G4Box Inc. to operate licensed English language online multiplayer games. In
its mobile division it provides mobile marketing services through Jambo Mobile
Solutions and mobile content by way of an investment in CrossRoad Mobile. For
more information see www.silverbirchinc.com.
As noted above, completion of the transaction is subject to a number of
conditions, including but not limited to, acceptance by the TSX Venture
Exchange. The transaction cannot close until the required approvals have been
obtained. There can be no assurance that the transaction will be completed as
proposed or at all.
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 the amount and actual completion of the private placement
contain forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are based upon
management's expectations, assumptions and beliefs, which may prove to be
incorrect. These forward-looking statements are subject to numerous risks and
uncertainties, which may cause actual results to differ materially from
results expressed or implied by such forward-looking statements. These risks
and uncertainties, certain of which are beyond management's control, include
completion of the proposed transaction, the impact of general economic
conditions, industry conditions, and currency fluctuations. There can be no
assurance that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in
such statements. 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. SilverBirch does not undertake to
update any forward-looking statements contained in this document as a result
of new information, future events or otherwise.
For further information:
For further information: Derek van der Plaat, Chief Executive Officer,
SilverBirch Inc., Tel: (416) 621-6711 Ext 34, Email: firstname.lastname@example.org;
Paul Haber, SVP & Chief Financial Officer, SilverBirch Inc., Tel: (416)
621-6711 Ext 35, email@example.com