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