Pacific Vector Holdings Inc.
TSX VENTURE : PVH

Pacific Vector Holdings Inc.

November 20, 2013 09:30 ET

Pacific Vector Closes Acquisition of DNA Distribution LLC.

CARLSBAD, CALIFORNIA and TORONTO, ONTARIO--(Marketwired - Nov. 20, 2013) - Pacific Vector Holdings Inc. (TSX VENTURE:PVH) ("Pacific Vector" or the "Company") a premier action sports retail and consumer brands company announced today that it has completed the transaction with DNA LLC which was previously announced on October 2, 2013. The Company has been operating the DNA LLC brand under an agreement since October 2nd which is the time between signing and close.

Through its wholly owned subsidiary, PVH DNA Inc., the Company purchased a controlling interest in DNA LLC ("DNA") and has entered into an ongoing licensing agreement with DNA LLC which allows PVH DNA Inc. to capture 100% of the operations going forward.

DNA owns iconic skateboarding brands Alien Workshop, Habitat and Reflex, which have been in operation for over 23 years with trailing twelve months sales of over $7.5 million.

The controlling interest in DNA was purchased for the issuance of 250,000 stock options and $1.5 million in the form of an earn out that will be payable at 8% of DNA branded sales with the first payment due twelve months from closing of the transaction. Following payment of the earn out in full, PVH DNA Inc. will pay its controlled subsidiary, DNA LLC an ongoing licensing fee of 6% of net sales.

Contemporaneously with closing DNA entered into a new factoring agreement with Bibby Financial which replaces the previous agreement with CIT. The agreement with Bibby expands the borrowing base for DNA and will allow for quicker expansion of the DNA business.

Chad Foreman, President of Brands, Pacific Vector Holdings: "We have been operating the DNA LLC brand for over a month and I am more impressed than ever with the strength of the brand and the excitement in the market. DNA provides a great foundation for the brand division and has exceptional growth opportunities both domestically and in international markets."

Robert Reynolds, CEO, Pacific Vector Holdings: "This acquisition of the DNA brands are indicative of further acquisitions the company may make as we continue to develop our wholesale division. We are looking forward to growing the DNA brands on both a domestic and global level."

DNA will join the growing list of brands that Pacific Vector controls in the action sports/lifestyle channel.

About DNA LLC:

Dayton, Ohio based DNA LLC is one of the world's leading suppliers of skateboards and accessories. Originally founded in 1990 by Chris Carter and Mike Hill, Alien Workshop was the original DNA brand. Habitat was introduced in 1999 under the creative direction of Joe Castrucci. The brand stands for skateboarding and eco-conscious design. The Habitat and Alien Workshop brands offer a full line of skateboard equipment, softgoods, and accessories. Reflex offers a focused line of hardgoods that includes bearings, tools, trucks, and grip tape. In addition to their own brands, DNA also distributes all the leading brands of trucks, safety equipment and grip tape. (http://www.dnadistribution.com/)

About Pacific Vector

Pacific Vector is a premier action sports retail and consumer brands company. www.pacificvector.com.

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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.

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