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iFabric Corp
Symbol IFA
Shares Issued 26,169,500
Close 2018-04-23 C$ 3.29
Market Cap C$ 86,097,655
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iFabric renews Maidenform licence, distribution agreement

2018-04-24 09:58 ET - News Release

Mr. Hylton Karon reports

IFABRIC CORP. PROVIDES CORPORATE UPDATE AND ANNOUNCES MAIDENFORM AGREEMENT RENEWAL

iFabric Corp. has provided a corporate update and renewed its key Maidenform licence and distribution agreement with MFB International Holdings SARL, a subsidiary of HanesBrands Inc.

Hylton Karon, president and chief executive officer of iFabric, provided the following comments with regard to the business outlook for both of iFabric's operating divisions as well as the renewal of the Maidenform licence agreement.

Intelligent fabrics update

"I am pleased to report that the intelligent fabric division (IFTNA) is moving into two exciting new areas of business.

"Early in 2016, IFTNA commercially launched its innovative technologies directly to the supply chain of a number of well-known and highly regarded global brands in the health care and sportswear industries. We are pleased to announce that IFTNA will now be sourcing and manufacturing various private label finished product programs that will be sold into the aforementioned markets as well as to major retailers. All of these products will utilize multiple combinations of IFTNA's class-leading technologies," said Mr. Karon.

"In addition to the new finished product programs, IFTNA has recently added fabric sourcing for current customers who were struggling with their own supply chains. Again, IFTNA will supply the various fabrics featuring its suite of technologies to the select brand's cut-and-sew operations," stated Mr. Karon.

"The opportunity to sell both finished product items, as well as fabric with integrated technologies, should increase IFTNA's per-unit revenue and overall sales, with the added benefit of the quality of products and the effectiveness of our technologies being directly under our control," added Mr. Karon.

"The initial programs for the delivery of finished products to a major retailer will commence shipping in Q3 2018," concluded Mr. Karon.

Apparel update

"I am pleased to advise the renewal of our Maidenform licence and distribution agreement, which has been extended to Dec. 31, 2020. This reflects the continued confidence that the licensor has in us, in terms of the value we bring to the brand. However, we will be making some strategic changes in this division going forward:

"Firstly, we have elected not to renew the sleepwear licence beyond the end of December, 2018. The sleepwear market is becoming increasingly crowded with new major manufacturers entering this market. This will inevitably lead to ever-increasing pressure on sleepwear margins, which makes this an unattractive market for us in the future. We have had a good run on sleepwear to date, with excellent profitability, and we will now be redeploying these resources to other areas of our business.

"We are particularly excited about new innovative products that we have recently designed in our core bra and accessories business. We have and will be registering a number of patents in this regard. Whilst sleepwear was a significant contributor to our sales in the last few years, initial response to our new products has been exceptional, and I am confident that the revenue from these offerings will exceed lost sleepwear sales over time and at better margins. In addition, this makes for a simpler business model for our apparel division by elimination of the fashion component as well as meaningful operational cost savings," stated Mr. Karon.

"From an operational standpoint, we are now able to closely align our two independent divisions, thereby allowing IFTNA to take advantage of skilled apparel division staff who bring their experience to assist in the execution of the IFTNA's new sales opportunities. By the same token, our apparel division will seek to take advantage of IFTNA's class-leading technologies to gain market share, incorporating them wherever possible into new products," concluded Mr. Karon.

About iFabric Corp.

Headquartered in Markham, Ont., through its wholly owned subsidiaries, Intelligent Fabric Technologies (North America) Inc. (IFTNA) and Coconut Grove Pads Inc., iFabric offers a variety of products and services in both of its strategic divisions:

  • IFTNA is focused on proprietary chemical formulations that render fabrics, foams, plastics and numerous other surfaces intelligent, thereby improving the safety and well-being of the consumer.
  • Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies intimate apparel products, accessories and sleepwear.

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