SilverBirch Announces US$2.0 Million Financing



    
    Funds to be used for the launch of CrossFire and for general working
    capital purposes
    

    TORONTO, Oct. 1 /CNW/ - SilverBirch Inc. (TSX-V: SVB), a leading digital
media company, today announced that it has closed the offering of US$2 million
senior secured term notes with Third Eye Capital Corporation acting as agent.
US$1.3 million was advanced yesterday and an additional US$700,000 will be
advanced subject to the successful acquisition of Red Mile Entertainment Inc.
by the Company.
    "This funding will allow us to properly launch our CrossFire game in the
next 45 days which we expect to drive substantial revenues and strong cashflow
for our 2009 fiscal year." commented Derek van der Plaat, CEO of SilverBirch.

    The Company also provides the following general business guidance:

    
    -   Management is comfortable with analyst consensus revenue forecast of
        approximately Cdn.$19 million for the fiscal year 2009; and

    -   Metin2 simultaneous concurrent user count now exceeds 2,500 and
        CrossFire now exceeds 500,000 simultaneous users worldwide.
    

    The net funds advanced by note holders will be held in escrow pending the
completion by the Company of its Cdn. $500,000 non-brokered private placement
financing. There is no assurance that the Company will be able to complete the
private placement which is also subject to TSX Venture Exchange approval.
    The notes offered have a term of eight months, unless extended at the
option of Third Eye for an additional four months, bear interest at 1% per
month during the first 6 months of their term and 1.5% per month thereafter
until maturity. The notes are secured against the assets of the Company and
certain subsidiaries. Agency fees of US$220,000 were paid to Third Eye on the
closing of the offering of the notes. In addition, the Company has issued
3 million warrants allowing the note holders to acquire one common share in
the Company for each warrant at an exercise price equal to Cdn. $0.10.
    The party that introduced the Company to Third Eye will be paid a fee
equal to 3% of the gross proceeds in the debt financing and granted one year
broker warrants equal to 3% of the securities subscribed for in the debt
financing.

    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.

    Cautionary Notes:

    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 anticipated analyst revenue forecasts, the acquisition
of Red Mile Entertainment Inc. and 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.

    %SEDAR: 00020946E




For further information:

For further information: Derek van der Plaat, Chief Executive Officer,
SilverBirch Inc., Tel: (416) 621-6711 Ext 34, Email: derek@silverbirchinc.com;
Paul Haber, SVP & Chief Financial Officer, SilverBirch Inc., Tel: (416)
621-6711 Ext 35, phaber@silverbirchinc.com

Organization Profile

SILVERBIRCH INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890