SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

June 06, 2007 12:07 ET

SilverBirch to Acquire Majority Stake in US Based Mobile Content Company

Acquisition secures mobile content and marquee customers such as Amazon.com

TORONTO, ONTARIO--(Marketwire - June 6, 2007) - SilverBirch Inc. (the "Company")(TSX VENTURE:SVB) has signed a Letter of Intent to acquire 60% of the shares of CrossRoad Mobile, LLC. CrossRoad is a mobile content, auction and mobile and landline billing company based in Dallas, Texas. CrossRoad customers include Aetna, Amazon.com, AT&T Wireless, IDT, Microsoft (Tell-Me Networks), Verisign and the Canadian Yellow Pages.

"This acquisition fills out our product range and will form a base for marketing to media companies in the USA," said SilverBirch CEO, Derek van der Plaat, "it signifies another step in transforming SilverBirch from a fee based business model to a more transaction oriented business model." CrossRoad CEO, Philippe Van Hecke added, "The transaction creates a fantastic opportunity to build a comprehensive content and billing platform in North America."

The investment will boost SilverBirch's sales immediately based on CrossRoad's current run rate of US$800,000. In addition, the acquisition is expected to have a positive impact on earnings. The SilverBirch executive team will also be strengthened by the addition of CrossRoad CEO, Philippe Van Hecke, who will lead US market development.

The purchase price consists of US$200,000 cash on closing, 2,000,000 SilverBirch common shares and US$180,000 VTB secured against Crossroad assets. SilverBirch will also assume CrossRoad's term debt in the amount of US$175,000. The transaction is subject to financing and TSX Venture Exchange approvals and is expected to close within 45 days. There is an associated finder's fee payable to Intellectual Investments, in the amount of 380,000 common shares of SilverBirch Inc.

In an unrelated matter, the company has entered into agreements with several employees to exchange current debt for common shares of the Company. It is anticipated that this conversion will extinguish $12,435 of current debt in exchange for 96,482 common shares of the company. Both the Crossroad finder's fee and shares for debt conversion are subject to TSX Venture Exchange approval.

About SilverBirch Inc.

Toronto-based SilverBirch Inc. is a fully integrated developer, publisher and distributor of high quality interactive media content and, through its SilverBirch Mobile division, provides mobile marketing and direct-to-consumer mobile content to its media partners. In addition, the company is a multi-platform video game developer and plans to launch an English-language MMORPG game (massive multiplayer online role-playing game) called Metin 2 www.metin2.us) this summer. For more information, please visit www.silverbirchstudios.com and www.silverbirchmobile.com.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • SilverBirch Inc.
    Derek van der Plaat
    Chief Executive Officer
    (416) 621-6711 Ext 34
    Email: derek@silverbirchinc.com
    or
    Hogarth Communications Inc.
    Don Hogarth
    Media Relations
    (416) 565-8920
    Email: don@hogarthpr.com