Toronto – SilverBirch Inc., today announced it has signed a non-binding letter of intent with Silverback Media Corp. to sell the assets and liabilities of Jambo Mobile Solutions Inc.. The proposed closing is scheduled for December 15, 2008 or at such earlier date as mutually agreed.
The divesture of this non-core business unit will allow the Company to focus on its core strengths and new business strategy in the gaming industry. The Company’s primary goal is to become a premier operator and publisher of Massive Multiplayer Online Games (MMOG) and video games for PCs and leading console platforms. The new corporate focus initiated recently will build upon SilverBirch’s existing operations including video game developer SilverBirch Studios, Netherlands-based interactive entertainment publisher Lighthouse Interactive, and a co-venture to operate licensed English language online multiplayer games. The company is also acquiring Red Mile Entertainment, publisher of console games Sin City and Heroes Over Europe, in a deal expected to close in early 2009, subject to shareholder, legal and regulatory approvals.
SilverBirch has recently initiated a restructuring plan that is expected to deliver significant savings and drive profitable revenue and growth. SilverBirch continues to review non-core operations to further reduce costs, improve margins, and enable more strategic investment in online multiplayer games and original game content development.
The contemplated transaction will be subject to final due diligence and a Definitive Purchase and Sale Agreement executed by both parties. The closing will also be subject to approvals required from all necessary parties and regulatory bodies.