Mr. Paul Baehr reports

IBEX REPORTS RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JANUARY 31, 2024

IBEX Technologies Inc. today released its financial results for the second quarter and the six months ended Jan. 31, 2024.

"We were pleased to see revenues continue to increase as Q2 revenues were up 12 per cent versus a year ago and the six-month revenues up 15 per cent. The increase in revenues can mainly be attributed to the strong performance of customers in the hemostasis market," said Paul Baehr, president and chief executive officer. Net earnings were down due to the expenses associated with the proposed acquisition of IBEX by BBI Solutions OEM Ltd.

Note: All figures are in Canadian dollars unless otherwise stated. The company's audited consolidated financial statements for the year ended July 31, 2023, and the accompanying notes and the related management's discussion and analysis can be found on the company's website or under the company's profile on SEDAR+.

Sale of IBEX at $1.45 per share

IBEX reminds shareholders that an annual and special meeting of shareholders will be held in Montreal, Que., on April 3, 2024, at which IBEX shareholders will consider the previously announced proposed amalgamation of IBEX and 15720273 Canada Inc., a newly incorporated, wholly owned subsidiary of BBI, whereby BBI will acquire all of the issued and outstanding shares of IBEX at a price of $1.45 per share in cash. The board of directors of IBEX unanimously recommends that shareholders vote for the special resolution approving the amalgamation. IBEX's management proxy circular for the meeting is available on IBEX's website and under IBEX's profile on SEDAR+.

Financial results for the second quarter of fiscal 2024

Revenues for the quarter ended Jan. 31, 2024, totalled $1,922,000, up $199,930 (12 per cent) from $1,722,070 for the same period the prior year.

Expenses totalled $1,766,600 (excluding income tax), an increase of $144,563 versus $1,622,037 for the same period the prior year. The increase in expenses is mainly due to general and administrative expenses, related to professional and legal fees associated with the previously announced transaction with BBI.

Net earnings totalled $49,664, a decrease of $50,369 as compared with Q2 FY2023 with the increase in revenues offset by income taxes from FY2023 and increase in expenses as described above.

The company recorded EBITDA of $199,043 versus $117,247 in the same period a year ago, an increase of $81,796 primarily due to the reduction in net earnings.

Financial results for the six months ended Jan. 31, 2024

Revenues for the six months ended Jan. 31, 2024, totalled $3,980,206, an increase of $506,565 (15 per cent) as compared with $3,473,641 in the same period a year ago. The increase in revenues stems from the continuing strength of the hemostasis market.

Total expenses at $3,120,263 increased by $425,162. The increase relates mainly to professional fees associated with the aforementioned BBI transaction and provision for income tax.

Net earnings totalled $859,943, up $81,403 versus the same period a year ago as a result of the increase in revenues of $506,565 and increase in expenses of $425,162 as mentioned herein.

The company recorded EBITDA of $1,055,892, up $197,411 versus $858,481 in the same period a year ago. The difference is attributed to the increase in net earnings of $81,403, an increase in net interest revenue, partially offset by an increase in depreciation and income taxes.

The company's substantial cash balance of $8,692,197 increased by $78,351 from $8,547,043 due to the results mentioned herein.

Net working capital increased by $389,684 during the six months ended Jan. 31, 2024, as compared with the year ended July 31, 2023.

Looking forward

As mentioned above, IBEX has entered into an agreement for the sale of the company. Subject to shareholder approval on April 3, 2024, the transaction is expected to close on April 8, 2024, following which the company will be delisted from the TSX Venture Exchange.

In the unlikely event that the transaction does not close, IBEX would expect to report fiscal 2024 earnings in line with the fiscal 2023 results.

About IBEX Technologies Inc.

IBEX manufactures and markets proteins for biomedical use through its wholly owned subsidiary IBEX Pharmaceuticals Inc. (Montreal, Que). IBEX Pharmaceuticals also manufactures and markets a series of arthritis assays, which are widely used in osteoarthritis research.

We seek Safe Harbor.