MARKHAM, ONTARIO--(Marketwired - Dec. 10, 2013) - iFabric Corp. (TSX VENTURE:IFA) ("iFabric" or the "Company") today announced that its wholly-owned subsidiary, Intelligent Fabric Technologies (North America) Inc. ("IFTNA"), has executed an agreement that secures global distribution and marketing rights of antimicrobial, antiviral and other textile technologies.
The execution of the agreement provides several significant benefits to iFabric:
- Expansion of distribution and marketing rights from North American rights to Worldwide rights;
- A direct, and more secure, relationship with the manufacturer of the technologies, including access to future product advancements and developments;
- Increased product margins as a result of the direct relationship with the manufacturer; and
- The elimination of the previous profit share arrangement.
As a result of securing the global rights to the products, IFTNA will rebrand on a global basis, its current offerings of antimicrobial, antiviral and other products. In addition, these products will now be offered on a global basis and will not be restricted to only the North American market as was previously designed.
"This new agreement clearly demonstrates the confidence the manufacturer has in the Company to execute on the future growth plans for these products. The agreement provides us with not only worldwide distribution rights at increased margins, but also a direct contractual relationship with the manufacturer and more efficient supply of our product to our customers," said Hylton Karon, President and CEO of iFabric. "In addition, we now have the ability to supply technical assistance and advice on product development in a wide variety of market areas on a global basis," he added.
IFTNA is terminating its existing Joint Venture Agreement ("JVA") with Intelligent Fabric Technologies Plc ("IFT-UK",) an unrelated company. The agreement with IFT-UK is being terminated for reasons of breach of material terms of the JVA by IFT-UK. The severance of the JVA will result in a onetime write-off of approximately $300,000 in current Joint Venture balances in the quarter ended September 30, 2013 and reflected in the audited financial statements of the Company for the year ended September 30, 2013, which are expected to be released during the third week of January 2014. "The execution of the new agreement ensures that business will not be affected by the termination of the JVA" stated Mr. Karon. The Company also estimates that future costs in connection with the new branding of the technologies will amount to approximately $100,000. These costs will be expensed as incurred.
The Company is also pleased to announce the approval from the United States Environmental Protection Agency ("the EPA") of its public health claims testing protocol.
"This represents the culmination of a three year process during which our protocol was developed in conjunction with the EPA and marks an important milestone towards higher level medical claims," said Hylton Karon. "However, there is still additional testing required in bringing this project to fruition," he added.
ABOUT iFABRIC CORP:
iFABRIC CORP currently has 25.4 million shares issued and outstanding. iFABRIC, through its subsidiary companies, is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories as well proprietary chemical compounds that render fabrics intelligent, thereby improving the safety and well-being of the wearer.
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.
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