iFabric Corp.
TSX : IFA

May 06, 2016 16:46 ET

iFabric Corp. Increases Loan Facility With the Business Development Bank of Canada

MARKHAM, ONTARIO--(Marketwired - May 6, 2016) - iFabric Corp. (TSX:IFA), hereinafter referred to as "iFabric" or the "Company", today announced that its subsidiary companies, Coconut Grove Pads Inc., Coconut Grove Textiles Inc. and 2074160 Ontario Inc., have jointly entered into an agreement with an existing lender, the Business Development Bank of Canada ("BDC"), in terms of which the existing loan with the BDC, currently amounting to $930,000 will increase to an amount of $1,490,000. The increase of $560,000 is to be utilized to renovate and refit the Company's premises located in Markham, Ontario.

The loan with the BDC is secured by a first mortgage over land and buildings located at 525 Denison Street, Markham, Ontario, a general security agreement from Coconut Grove Pads Inc., an assignment of rents, as well as a guarantee from Intelligent Fabric Technologies (North America) Inc., a subsidiary company. The loan is repayable at the rate of $10,000 per month together with interest at the BDC's Floating Base Rate (currently 4.70%) minus a variance of 0.75%.

"We have occupied our premises in Markham for over ten years, during which time office trends have changed considerably," stated Hylton Karon, President and CEO. "Accordingly, we will be using the increase in our BDC loan to update and refit our premises so as to provide for a more efficient, modern, and comfortable environment for our existing staff and we will also be making provision to house the additional staff that will be required to facilitate the anticipated growth in both of our business divisions. In addition, our meeting areas will be updated as well, so as to provide the appropriate setting for our key business partners when they visit," concluded Mr. Karon.

ABOUT iFABRIC CORP:

iFABRIC CORP. currently has 25.9 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products, sleepwear and accessories, and also is a developer and distributor of proprietary innovative products and treatments that are suitable for application to textiles, plastics, liquids, and hard surfaces. These products are designed to provide added benefits to the user.

FORWARD-LOOKING STATEMENTS

Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward looking statements. The use of any words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Company's products.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.

Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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