NEWS: Silverbirch Has Appointed Aberdeen Gould Capital Markets as its Exclusive
posted on
Nov 06, 2008 05:20AM
Edit this title from the Fast Facts Section
Attention Business Editors:
Silverbirch Has Appointed Aberdeen Gould Capital Markets as its Exclusive Advisor
The Board and Committees Take Options in Lieu of Cash Compensation
TORONTO, Nov. 6 /CNW/ - SilverBirch Inc. (TSX-V:SVB), a leading digital
entertainment company, today announced it has signed an agreement with
Aberdeen Gould Capital Markets Ltd. (Aberdeen Gould) to be their exclusive
advisory firm. In addition, it has agreed on the compensation for the new and
existing incumbents of the Company's Board of Directors for Fiscal 2009.
Aberdeen Gould will provide exclusive financial, M&A, management advisory
and other consulting services, as required, to SilverBirch. The term of the
agreement is for 2 years and the Company will pay a monthly fee of $5,000 plus
G.S.T. Aberdeen Gould has agreed to accrue and defer the monthly fees payable
without interest for a 6 month period. In addition to Aberdeen's cash
compensation, they have been granted 1,000,000 irrevocable options at $0.10
for a three year period to vest in accordance with the terms and conditions of
the Company's Stock Option Plan. This agreement is subject to TSX Venture
Exchange final approval.
Aberdeen Gould's settlement of shares for the $45,000 owed by SilverBirch
has received TSX Venture Exchange approval. In lieu of cash, Aberdeen Gould
will receive 562,500 SilverBirch units priced at $0.08. Each unit consists of
one common share and one half Common Share purchase warrant of the Company.
Each whole Warrant will entitle the holder to acquire one additional Common
Share at a price of $0.18 per share for 2 years from closing.
Pursuant to the recommendations of the Compensation Committee, cash
compensation for board and committee participation is temporarily deferred.
However, options to purchase common shares of the corporation have been
granted at a strike price of $0.10 per share, being $0.02 higher than the
closing price on the date of board approval (November 4, 2008). The Board
Chairman is to receive 725,000 options, which also compensates for sitting on
three standing committees, the Chair of the Audit committee will receive
525,000 options, which also cover membership of the Disclosure and Governance
committee, the Chair of the latter is to receive 600,000 options, to include
Compensation and Audit committee attendance, and the Chair of the Compensation
committee receives 450,000 options. All of the above grants vest in accordance
with the terms and conditions of the Employee Incentive Stock Option Plan
approved by the shareholders on May 27, 2008, and expire on November 5, 2013.
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 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.
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or accuracy of the content of this news release.
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%SEDAR: 00020946E
For further information: Graham Lowman, Secretary Treasurer, SilverBirch
Inc., Tel: (416) 621-6711 Ext 23, Email: glowman@silverbirchinc.com; Paul
Haber, SVP & Chief Financial Officer, SilverBirch Inc., Tel: (416) 621-6711
Ext 35, Email: phaber@silverbirchinc.com