MARKHAM, ONTARIO--(Marketwire - July 4, 2012) - iFabric Corp (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", recently announced that its shares commenced trading on June 6th 2012 on the TSX Venture Exchange under the trading symbol IFA. Further to this announcement, the Company is pleased to provide a more formal introduction to the investment community and provide additional information about the business of its wholly owned subsidiary, Coconut Grove Textiles Inc ("CGTI").
Based in Markham, Ontario, Canada, CGTI, operates two key divisions:
The Apparel Division
The apparel division has, since 1985, manufactured, distributed and sold women's intimate apparel and innovative accessory options. The demand for CGTI's products, including the demand for its patented Backless Strapless Underwire Bra, has contributed to CGTI's success to date. CGTI's customer base includes major retailers in Canada, the USA and UK. CGTI's "just in time" inventory is held in warehouses throughout Canada, the USA and the UK. Sales for the year ended September 30th, 2011for the apparel division were approximately $5.6 million.
"Whilst sales in the intimate apparel division have been relatively flat for the last three years due to difficult retail conditions, especially in its key European market, the apparel division is expected to increase sales volumes as a result of an exclusive license and distribution agreement that was signed in January 2012 with Mo Industries, LLC. This agreement provides CGTI with exclusive rights to manufacture and develop new intimates collections under the Splendid and Ella Moss brands. The collections will feature both women and girls' lines and will comprise more than 25 styles of bras, undies, chemises and rompers. Distribution is aimed at major department and specialty stores in countries that currently sell Splendid and Ella Moss merchandise, as well as three Splendid boutiques in California and the Splendid.com website" commented Mr. Hylton Karon, President and CEO of iFabric. CGTI recently opened a showroom, sales office and design facility in New York, all of which will be primarily dedicated to the development and growth of the Splendid and Ella Moss categories.
In an earlier industry specific press release, Jonathan Saven, president of Splendid stated that "Splendid had previously tested a small collection of intimates which turned out to be successful. We recognize our consumers' appetite for the category, which spurred the licensing agreement with Coconut Grove". Both the Splendid and Ella Moss collections were unveiled at the New York innerwear market in May 2012 with initial deliveries slated for spring 2013. "Confirmed orders received to date for the initial spring 2012 season amount to approximately $800,000. This is 50% higher than our internal projections for season 1" said Mr Karon who cautioned that "the building of sales volumes for a new category, even for highly respected brands such as Splendid and Ella Moss, requires a sustained product development and marketing effort."
The Intelligent Fabrics Division
The Intelligent Fabrics Division was created in 2008. This new division is developing a range of products focused on the improved safety and well-being of the wearer and user of its fabrics across multiple market segments including medical, health care, sports and athletic, military, consumer and corporate apparel, bedding and linens. The Intelligent Fabrics Division will initially focus on its CLINIWEAVE and ENGUARD technologies for which it has exclusive North American distribution rights and registered trademarks.
CLINIWEAVE is effective against a wide range of micro-organisms including mold, mildew, fungi and odor causing bacteria. It provides long-term, effective control of microorganisms. This efficacy and safety has been documented in numerous peer reviewed publications, trade articles and certified tests. It is durable to deterioration through repeated washing and is clinically proven to kill bacteria associated with hospital acquired infections.
CLINIWEAVE was first studied at Imperial College, London, by leading microbiologist Professor Mark Enright who compared its effectiveness against three silver-based antimicrobial fabrics in reducing the bacteria associated with MRSA. The results showed that only Cliniweave-treated samples demonstrated significant antibacterial activity against high concentrations of MRSA, severely reducing bacterial numbers within just one hour.
Professor Enright said: "Our research indicates that Cliniweave is potently antibacterial; not only did it prove effective but it was also extremely fast acting. The spread of infection continues to be a major concern in the NHS and our study suggests that if Cliniweave is brought into hospital wards at points where people interact, it may prove to be an important weapon in reducing the frequency of these."
The U.S. Department of Health and Human Services "DHHS" estimates that one in 20 patients who enter a hospital will contract a potentially deadly virus during their visit. DHHS also estimates that potentially deadly infections cost the US $33 billion each year in preventable costs. One type of deadly bacterium alone reportedly has been linked to around 14,000 US deaths each year with as many as 100,000 annual deaths attributable to all forms of bacteria.
According to a study published in the September 2011 issue of the American Journal of Infection Control, a team of researchers led by Yonit Wiener-Well, MD, from the Shaare Zedek Medical Center in Jerusalem, Israel, concluded that more than 60 percent of hospital nurses' and doctors' uniforms tested positive for potentially dangerous bacteria.
"This is definitely a target market for us" said Hylton Karon, "and there are indications based on the opinion of Professor Enright and others, that textile products supplied to the health care and hospitality industries will in the future contain some form of anti-microbial technology. The potential in these markets is what really makes us excited about this part of our business" concluded Mr. Karon.
Potential medical uses for CLINIWEAVE include bedding, curtaining, air filters, scrubs, masks and surfaces amongst others.
ENGUARD mosquito repellant, when applied to textiles acts as an insect repellent. EGUARD is activated by rubbing or scrunching thereby causing a natural vapor to be released.
Under its UK trade name Arnywear, ENGUARD insect repellent clothing was clinically tested and proven at the London School of Hygiene & Tropical Medicine, where Nigel Hill, Medical Entomologist explained, "The fabric performed very well in our tests against hungry mosquitoes. It continually re-impregnates itself with fresh repellent during normal use giving long term protection without the need to continually add more chemical." This was borne out by the Company's own testing conducted by a top North American laboratory. The test protocols established for this test have been accepted by EPA (with some minor modifications), as the benchmark for approving textiles impregnated with a repellant.
ENGUARD has been proven to be effective against over 3,000 types of biting insects, and is 100% insecticide free and wash durable. "We believe that a large element of the repellant consumer market will embrace ENGAURD products for their convenience and safety as an alternative to topical sprays and creams. There is definitely a place for both" said Mr. Karon.
"We are seeking Environmental Protection Agency ("EPA") in the USA and Health Canada ("HC") approvals for all our intelligent fabric technologies and we look forward to market penetration if such certifications are received." stated Mr. Karon.
"With the expected increase in sales in the intimate apparel division starting in 2013 and the launch of intelligent fabrics to the North American market later this year the future looks promising for the Company" added Mr. Karon.
ABOUT iFABRIC CORP:
iFABRIC CORP currently has 25.2 million shares issued and outstanding. iFABRIC 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.
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.