Pacific Vector Holdings Inc. Provides Default Status Report and Corporate Update
CARLSBAD, CALIFORNIA–(Marketwired – May 30, 2014) – Pacific Vector Holdings Inc. (TSX VENTURE:PVH) (the “Company”) is providing this corporate update and the bi-weekly Default Status Report in accordance with National Policy 12-203 – Cease Trade Orders for Continuous Defaults (“NP 12-203”). On May 1, 2014 the Company disclosed in the default notice (the “Default Notice”) that, for reasons disclosed in the Default Notice, there would be a delay in the filing of its annual financial statements, accompanying Management Discussion and Analysis and related CEO and CFO certifications of annual filings for the financial year ended January 7, 2014 (collectively, the “Required Filings”).
As a result of this delay in filing the Required Filings, a management cease trade order was granted to the Company. The MCTO restricts all trading on the securities of the Company, whether direct or indirect, by the Chief Executive Officer and the Chief Financial Officer of the Company until such time as the Required Filings have been filed by the Company. The MCTO does not affect the ability of all other shareholders who are insiders of the Corporation to trade their securities.
Below is the update on the status of the financing and a corporate update.
As announced on May 23, 2014, the Company was unable to obtain an immediate bridge of three hundred thousand dollars which would have allowed for the payment of current obligations. As a result, a first secured lender whose one million dollar loan was due April 17, 2014, has filed a notice of default. In addition, another secured lender, owed four hundred thousand dollars which matured on April 21, 2014 and an unsecured lender, owed one million dollars which matured on October 31, 2013 have filed notices of default. The Company is diligently working to cure the defaults.
As a result of the Company’s financial circumstances, its stock price has reacted negatively and its ability to complete the conversion of US$6,959,987 in debt to equity and its ability to raise additional equity or debt has been greatly inhibited.
The Company has continued to advance the sale of the assets of Reno Wilson Inc. (Gatorz Eyewear) to a third party for gross proceeds of approximately $1.2M which is subject to fluctuations based on the value of the inventory and accounts receivable. The purchaser has completed the first draft of the legal agreements but the documents and structure will need to change as a result of the notice of default from the secured lender.
On May 28(th) , the Company’s wholly owned subsidiary PVH DNA Inc. entered into a rescission agreement (the “Agreement”) with DNA LLC, which is the company that owns the Alien Workshop, Habitat and Reflex skateboard brands.
The Agreement rescinds PVH DNA’s 51% interest in DNA LLC and cancels the license that PVH DNA had to sell those brands.
Under the Agreement, the Company has 6 months to sell its current inventory of Alien Workshop, Habitat and Reflex skateboard branded products. In exchange Dyrdek Enterprises, the second largest shareholder which owned 46.5% of DNA LLC, has agreed to take over stewardship of DNA LLC and pay the final payroll for the PVH DNA employees.
The Company also closed its only retail location in New Mexico bringing the total number of retail locations closed since March to 19. The Company continues to have 15 retail locations in operation.
About Pacific Vector
Pacific Vector is a premier action sports retail and consumer brands company.
Tags: Flag Day
boil the ocean 
May 31, 2014 at 1:46 pm |
So…. Dyrdek now controls the AWS brand again. ?
June 2, 2014 at 3:45 am |
Intriguing developments…
June 3, 2014 at 1:40 am |
We love you, so please take this in the spirit it was intended.
But it is absolutely bizarre how little mainstream coverage this
is getting. It’s as though RCA or Universal records went under all of a sudden and Rolling Stone and Spin and Pitchfork all but ignored it. It just makes what you do so well all the more important. Thanks for carrying the torch. Its make us love you all the more.
June 7, 2014 at 9:22 am |
Because nobody REALLY knows what’s going on. Thrasher can’t just publish rumors as facts. Especially when the rumors keep changing.
June 3, 2014 at 5:45 pm |
^ I think this press release explains why no one is talking about it. Per this post, PVH has to sell it’s DNA inventory and Dyrdek Enterprises (aka Rob Dyrdek) retakes “stewardship” of Alien, meaning that the decision to cut the team and “pay final payroll” ultimately falls to Rob Dyrdek, because if he has full stewardship and control of the brand, he could theoretically choose to keep it going. I don’t think anyone in the skate media proper wants to talk about Dyrdek shedding the final vestiges of the beloved 90s pro and finally taking on the Darkman status until there’s something hard to go on.