Toronto – SilverBirch Inc. has announced that it has completed the sale of its 60% stake in Crossroad Mobile, LLC. For
nominal consideration, the assets and related liabilities have been transferred back to the purchasers. Under the agreement, the effective closing date is September 30, 2008.
The transaction will result in the elimination of just over $40K of debt in relation to a Secured Promissory Note and reduces further dilution for SVB’s shareholder with the immediate cancellation of 1,800,000 warrants.
“This transaction allows SilverBirch to remain focused on our core game assets: CrossFire, Metin2, and the console games developed and marketed by SilverBirch Studios, Lighthouse, and (*)Red Mile,” said Kevin Astle, SilverBirch interim President and CEO. “The new board of directors has moved swiftly and decisively to re-position the company to capitalize on the potential of these assets for the benefit of all shareholders.”
The divesture of this non-core business substantially completes the Company’s previously announced process of re-focusing on its core strengths in the game industry. The Company’s goal is to become a premier publisher and marketer of Massive Multiplayer Online Games (MMOG) and video games for PCs and leading console platforms. This new strategic focus will build upon SilverBirch’s existing operations, including video game developer SilverBirch Studios, Netherlands-based interactive entertainment publisher Lighthouse Interactive, and a co-publishing 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 operations to further reduce costs and improve margins to enable more strategic investment in online multiplayer games and
original game content development.