THE CANADIAN PRESS

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TORONTO - Video game company SilverBirch Inc. (TSXV:SVB) says it has signed a non-binding letter of intent with Silverback Media Corp. to sell the assets and liabilities of Jambo Mobile Solutions Inc., a non-core business.

Financial terms of the deal, announced Wednesday, were not revealed.

The transaction is scheduled to close Dec. 15.

SilverBirch said the divesture of non-core Jambo allows the Toronto company to focus on its core strengths and new business strategy of expanding in online video games.

The company said it recently restructured its operations and continues to review non-core operations to further cut costs, improve profitability and provide more cash for strategic investments in online multiplayer games and development of new games.

SilverBirch is an interactive video game company whose operations include SilverBirch Studios, a Dutch-based video game developer; Red Mile Entertainment, a San Francisco-based publisher of console games such as Heroes Over Europe and the exclusive worldwide licence holder for Sin City and other businesses.

Silverback is a global mobile software provider with operations in Toronto, Los Angeles, Miami, Montreal, Paris and Aix-En-Provence, France.

In trading on the TSX Venture Exchange on Wednesday, SilverBirch shares were unchanged at 7.5 cents.