|By Marketwired .||
|June 13, 2014 07:45 PM EDT||
CARLSBAD, CALIFORNIA -- (Marketwired) -- 06/13/14 -- 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 previously announced, the Company was unable to obtain an immediate bridge financing which would have allowed for the payment of current obligations. As a result, various debt holders owed a total of three million four hundred thousand dollars have filed default notices.
The Company's wholly owned subsidiary PVH DNA Inc. entered into an agreement which rescinds PVH DNA's 51% interest in DNA LLC and cancels the license that PVH DNA had to sell those brands. The Company has terminated all PVH DNA employees with the exception of an accounting person and has six months to sell the remaining licensed product.
Since March, the Company's subsidiary, Ryderz Compound Inc. has closed 32 of its 34 retail locations including 12 this week. All of the inventory, from the most recently closed stores, has been returned to the central warehouse for sale.
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 notices of default from the debt holders.
The Company is taking legal advice on the next steps for the Company and its subsidiaries.
About Pacific Vector
Pacific Vector is a premier action sports retail and consumer brands company.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Pacific Vector assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Pacific Vector.