SilverBirch Appoints New President and CEO as Company Refocuses Exclusively On Gaming
Wednesday November 5, 7:30 am ET
<< - New CEO brings extensive global marketing experience - Strategic shift leverages company's core strengths in the fast- growing gaming sector >>
TORONTO, Nov. 5 /CNW/ - SilverBirch Inc. (TSX-V:SVB - News), a leading digital entertainment company, today announced the appointment of Mr. Kevin Astle as interim President and Chief Executive Officer. Under Mr. Astle, a seasoned business and marketing strategist with extensive global experience, SilverBirch will refocus exclusively on the fast-growing gaming sector. Mr. Astle succeeds Derek van der Plaat, who resigned today as President and CEO, and as a Director of the company.
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The refocused strategy leverages SilverBirch's core strengths in gaming. The company's primary goal will be to become a premier publisher and operator of Massive Multiplayer Online Games (MMOG) as well as video games for PCs and leading console platforms. The new corporate focus will build upon the company'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 initiated a restructuring plan that is expected to deliver significant savings and drive profitable revenue growth and earnings. The plan's first phase has been completed with the elimination of 6 staff positions. SilverBirch is considering options to divest its mobile business and will continue to review operations of all its business units to further reduce costs, improve margins, and enable more strategic investment in online multiplayer games and original game content development. The company's MMOG business unit, currently comprising Metin2 and CrossFire, is expected to generate a significant portion of its future revenues and earnings. As a result of these changes, the company believes the guidance on financial performance issued by the previous CEO on October 1, 2008 is no longer applicable.
Mr. Astle is the founder of Marketing Imperatives International, a marketing and management consultancy that specializes in mergers, acquisitions, alliances and strategic business growth initiatives. As Executive Vice President and Managing Director of The Marketing Store Worldwide, a global marketing agency, he provided multi-disciplined communications services to major brand marketers such as McDonalds, Shell and Coca-Cola, throughout North and South America and launched its Canadian operation, now one of the top ten largest marketing firms in Canada. During his career he was recognized as Promotion Marketer of the Year both in Canada and globally. Mr. Astle was appointed a director of SilverBirch Inc. on October 16, 2008.
In conjunction with the restructuring, the Company has entered into multiple two-year contracts with three MMOG consulting companies, A&P Entertainment, Escalada International Limited, and Morsonwell Inc. who are all leaders in strategy and business development in the MMOG sector. They will provide consulting services in online game development, marketing and operations. The consulting agreements, which have no cash component, provide for the issuance of an aggregate of 10 million SilverBirch common shares, which will vest over the term of the contracts, as services are rendered on a quarterly basis, and will be subject to final documentation and TSX Venture Exchange approval.
About SilverBirch Inc.
Toronto-based SilverBirch Inc. is a leading digital entertainment company operating in the fastest growing sectors of the video game market. The company's video game operations include SilverBirch Studios, a video game developer; Red Mile Entertainment, a San Francisco based publisher of console games such as Heroes Over Europe(x) and the exclusive worldwide license holder for Sin City; Lighthouse Interactive, a Netherlands-based publisher of PC games; and a co-venture with G4Box Inc. to operate licensed English language online multiplayer games. For more information see www.silverbirchinc.com.
(x) The Red Mile Entertainment acquisition is subject to shareholder, legal and regulatory approvals.
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.
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
Terence M. Donnelly, Chairman, SilverBirch Inc., Tel: (416) 922-5600 Ext 252
