SilverBirch to Acquire Red Mile Entertainment, Holders of the "Heroes" Flight Combat Franchise License


    Acquisition to further round out SilverBirch offering in the video game

    TORONTO, July 2 /CNW/ - SilverBirch Inc. (TSX-V: SVB), a leading digital
media company, today announced an agreement in principle to acquire all of the
outstanding shares of Red Mile Entertainment, Inc. (OTC BB: RDML), a
California-based video game publisher with worldwide rights to established
brands and intellectual properties including  the "Heroes" flight combat
    Red Mile, an NASD OTC Bulletin Board listed company, has developed and
published a number of successful console and PC titles including Heroes Of The
Pacific, which sold over 600,000 units. Current projects in development
include a sequel, Heroes Over Europe, which is anticipated to be released in
early 2009, and another highly anticipated licensed title, for which the
company will seek a co-publishing partner.
    "Red Mile's position as a strong console publisher of both original and
licensed IP complements our core focus in the video game industry," commented
Derek van der Plaat, CEO of SilverBirch. "With our publishing capability in
Massive Multiplayer Online Games (MMOGs), PC and handheld games, the
acquisition of Red Mile further rounds out SilverBirch's capability as a
comprehensive publisher."
    "SilverBirch's strategy to grow through strategic acquisitions is a
vision that Red Mile shares and one that we can contribute to in a meaningful
way to position the combined entity as a leading integrated video game
publisher," added Chester Aldridge, CEO of Red Mile.
    Red Mile is expected to contribute over $7 million in revenue and roughly
$2 million in EBITDA starting in 2009. SilverBirch has advanced a bridge loan
of $750,000 CAD dollars to Red Mile as part of the acquisition terms, and will
also issue seven-eighths of one SilverBirch share from treasury in exchange
for each Red Mile share, plus an earn-out based on future revenue targets.
Currently 16,544,461 Red Mile shares and warrants qualify for the transaction,
which equates to 14,476,403 new Silverbirch shares. The transaction is subject
to regulatory and exchange approvals both in Canada and the United States as
well as, in the case of Red Mile, shareholder approval.

    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 For more information, please visit

    About Red Mile Entertainment, Inc.

    Red Mile Entertainment, Inc. is a worldwide developer and publisher of
interactive entertainment software. Headquartered in San Anselmo, California,
the company creates, incubates and licenses premier intellectual properties
and develops products for console video game systems, personal computers and
other interactive entertainment platforms. For more information, visit

    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 and approval of the shareholders of Red Mile. 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.

    The securities of SilverBirch described in this news release have not
been and will not be registered under the United States Securities Act of
1933, as amended, and may not be offered or sold in the United States or to a
U.S. person absent an available exemption from the registration requirements
of such Act.

    Forward-Looking Statements - Certain information set forth in this news
release, including management's assessment of future plans and of the
contribution of Red Mile to SilverBirch's revenue and EBITDA starting in 2009,
contain forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are based upon
management's assessment of Red Mile's future plans and operations and are
based on Red Mile's current internal expectations, estimates, projections,
assumptions and beliefs, which may prove to be incorrect. These
forward-looking statements are subject to numerous risks and uncertainties,
which may cause actual performance and financial results in future periods to
differ materially from any projections of future performance or 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 on the terms currently contemplated,
the impact of general economic conditions, industry conditions, currency
fluctuations, and the anticipated operating costs of Red Mile which may impact
EBITDA assumptions. 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

    %SEDAR: 00020946E

For further information:

For further information: Derek van der Plaat, Chief Executive Officer,
SilverBirch Inc., Tel: (416) 621-6711 Ext 34, Email:;
Chester Aldridge, CEO and Chairman, Red Mile Entertainment, Inc., Tel: (415)
339-4240, Email:

Organization Profile


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