"The third quarter results represent a milestone in the Company's history, with record revenue, record operating profit and record adjusted EBITDA", stated Mr. Hylton Karon President and CEO. "We look forward to continued growth in the future", he added.
iFABRIC Corp., through its Intelligent Fabric Technologies North America Inc. (IFTNA) division, has exclusive global distribution and marketing rights for a new generation of intelligent textiles which have the ability to kill bacteria, repel insects and heal the skin amongst others. iFabric is also a a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories through its Coconut Grove division.
The global infection control market is expected to grow to reach US$22.58 billion by 2022 (Source: Research and Markets);
Significant products sales opportunities based on its proprietary intelligent textile technologies;
Proven Protx2™ technology to combat wide variety of infectious diseases;
US EPA registration of Protx2™ completed, thus allowing US sales;
Application for regulatory approval of Enguard® by the US EPA is in process;
Fundamentally sound business model of its Coconut Grove apparel division
Intelligent Fabric Technologies North America Inc. (IFTNA)
In 2008, Intelligent Fabric Technologies (North America) Inc. began developing a wide range of products focused on the improved safety and well being of the wearer and user of fabrics across a wide range of market segments including medical, health care, sports and athletic, military, consumer and corporate apparel, bedding, linens and other market categories.|
The IFTNA division is currently focused on its regulatory, product development and marketing efforts on several key technologies, namely:
Protx2™ Anti Microbial Technology
Protx2 formulations impart anti-microbial and/or anti-viral powers to fibers, plastic, paint and paper treated with these formulations. Numerous laboratory tests have shown that treated products inhibit the growth of a wide variety of infectious agents associated with Healthcare-Associated Infections ("HAI"), including MRSA, C-Difficile, VRE, and H1N1, and by their application may assist in preventing the spread of such infections.
The company is currently targeting two key markets with regard to the distribution of Protx2;
a) Sports apparel, outerwear and footwear
There is an increasing trend amongst major sports apparel, outerwear and footwear manufacturers to offer technologically-enhanced products. With the ability of Protx2 to combat odour causing bacteria, the Company is able to provide manufacturers with the ability to produce apparel and footwear that stays fresher longer without the need for repeated washing or cleaning. Innovative application methodology developed by the Company over a number of years allows for Protx2 to be integrated into almost any fabric as well as all the components of footwear including foam, rubber, and plastics. With its current EPA registrations, the Company can distribute Protx2 for use in all sportswear and footwear for distribution in the U.S. market.
Protx2 formulations impart anti-microbial and/or anti-viral powers to fibers, plastic, paint and paper treated with these formulations and is suitable for application to many areas of a hospital environment, including, scrubs, bedding, curtaining, carpeting, walls, air filters and numerous plastic components amongst others. The Protx2; range of products is dedicated to combating hospital acquired bacterial infections, including MRSA, Clostridium Difficile, VRE, Klebsiella Pneumonia, and by their application may greatly assist in reducing such infections. In addition, Protx2 is also a strong antiviral agent effective against, Norovirus, and H1N1.
In order to fully enter the medical market for Protx2, the Company is in process of securing a second and higher level of EPA registrations that will allow it to make applicable claims in connection with the efficacy of Protx2 ("kill claims") for medical use. A testing protocol for this purpose has been negotiated and agreed to by the EPA and testing in conformity with the protocol has commenced. On completion of testing, the reports covering the applicable test results will be submitted to the EPA for their review and approval of the appropriate public health claims to be included in future product labeling. Entry into the medical market in the form of scrubs treated with Protx2 has already commenced, covering both the retail scrubs market as well as the direct to hospital market.
Learn more about Protx2
Fabrics treated with the Dreamskin polymer are designed to encourage a healthy skin environment because of its ability to control both moisture and friction. Dreamskin is effective during both summer and winter months as both high and low moisture environments are known causes of discomfort and irritation. By providing a surface that is free from skin irritants such as laundry detergent residue and dust, Dreamskin treated fabrics provide for a luxurious wearing experience without irritation or dryness. In particular, athletic apparel has two key areas that can cause skin irritation, namely friction and excessive moisture. Dreamskin targets both of these to help prevent irritation during sporting activities.
The potential also exists for Dreamskin to be marketed as a medical device for integration in clothing in order to aid sufferers of eczema, psoriasis and other types of irritating skin disorders. The friction caused by clothing is currently a major source of irritation for sufferers of such disorders and the ability of Dreamskin to substantially reduce the amount of friction could serve as a useful tool to alleviate irritation. In order to be marketed as a medical device Dreamskin will need to be registered with the United States Food and Drug Administration ("FDA") as a medical device. Such registration may necessitate a clinical trial and the Company is currently consulting with its regulatory and industry experts regarding the best approach for conducting such a trial. The commencement date of the Company's FDA application for Dreamskin as a medical device is not yet certain.
The roll-out of Dreamskin to the market as a retail product has commenced via finished bedding and bathroom products treated with a combination of Dreamskin and Protx2, which has been supplied to a customer under a strategic production, sales and marketing agreement between IFTNA and the customer. The target market for these products is international hotel groups.
Dreamskin is also currently being integrated into certain product offerings of the Companyís Intimate Apparel Division and in particular intimate apparel and sleepwear. The market launch for initial product offerings containing Dreamskin commenced in January of 2017.
Learn more about Dreamskin
- Enguard® Insect Repellent Fabric
Applying Enguard to fabrics results in a highly effective and durable insect repellent. A major strength of Enguard is that it is safe for children. Testing carried out by the London School of Hygiene and Tropical Medicine show Enguard to have repelling power comparable to highconcentration DEET and significantly greater than any other natural insect repellents.
Application for regulatory approval of Enguard by the US Environmental Protection Agency (the "EPA") is in process. Application will also be made to the Pest Management Regulatory Agency ("PMRA") division of Health Canada for approval of Enguard for the Canadian market utilizing EPA data once the US EPA application has been completed. Whilst the timelines for regulatory approvals of Enguard in the U.S. and Canada are not certain, a key customer for Enguard commenced product development and testing of Enguard apparel in January 2017 with the strategy of initially launching Enguard products in international markets where regulatory approvals are far less stringent than that of the U.S. and Canada.
Learn more about Enguard
Textiles infused with UVtx provides apparel with a built in ultraviolet ("UV") light blocker. The UVtx formulation contains both UV reflecting and UV absorption elements, giving apparel treated with UVtx the ultraviolet protection factor ("UPF") strength of up to UPF 60. This allows the wearer of UVtx treated apparel to enjoy permanent sun protection without the need to apply sprays or lotions to the area covered by the garment. Testing has shown that UVtx treated textiles never lose efficacy.
Commercialization of UVtx commenced during the latter part of 2016 and the first products integrating UVtx will be in the market during the second quarter of 2017.
FreshTx is a state of the art odour-absorbing technology, which is easily infused into textile products. FreshTx offers permanent protection against odours without the need to use sprays or perfumes. FreshTx uses naturally-occurring elements for effective results that are non-toxic and safe. Extremely durable, once applied, the properties of FreshTx are renewed with each wash, and is effective even when wet.
Commercialization of FreshTx commenced during the latter part of 2016 and the first products integrating FreshTx will be in the market during the second quarter of 2017.
RepelTX is an environmentally friendly coating that is resistant to moisture. The RepelTX coating can be used on various surfaces including electronics and fabrics, which are then protected against water and moisture by simply treating them in a fluorinated solvent. The coating dries in just over one minute at room temperature, and it starts working immediately once set.
A substantial body of testing carried out by the Company have shown that RepelTX and Protx2 work extremely well in conjunction with eachother. Particularly in health care environments, the combination of water repellency and an antimicrobial allows for garments that repel liquids (for example, blood) and at the same time can kill bacteria. These combined attributes are optimal for the healthcare industry. The additional benefit to iFabric will be increased revenue from every sale involving a multiple of chemicals.
RepelTX was added to the division's product portfolio during fiscal 2016 and is commercially available for sale. The first products integrating RepelTX will be in the market during the second quarter of fiscal 2017.
DryTx moisture wicking technology provides treated apparel with the ability to quickly draw moisture away from the skin and disperse perspiration across the fabric surface for faster evaporation. The main attributes of DryTx are its abilities to:
- Wick moisture away from the skin
- Provide for garments that will not feel heavy or damp even during periods of high exertion by the wearer
- Provide for garments that create less skin chafe compared to wet fabrics
- Provide for garments that dry quicker, thereby assisting the wearer in maintaining a more even body temperature
- Allow for fabrics to retain their natural softness
An additional significant attribute of DryTx is its ability to be integrated into apparel in combination with the division's other product offerings, resulting in unique garments that provide superior performance characteristics for athletic apparel. The first products integrating DryTx will be in the market during the second quarter of 2017.
- temp+x with Friction Control
The built in technology temptx allows the fabric to react based on your current body tempurature helping regulate and keep your body in a comfortable state. The specially formulated polymer coates the fabric creating a smooth, surface to reduce chafing even in sensitive skin types
The Intimate Apparel division commenced operations in 1992 and currently operates under the trade name Coconut Grove Intimates. Its business comprises the design, purchasing, and distribution of intimate apparel and, in particular, a range of specialty bras including the division's patented backless, strapless underwire bra. The division also distributes a range of apparel accessories as well as sleepwear. The division utilizes contract warehouse facilities located in Los Angeles, California and Manchester, England in order to service its key U.S. and European markets.
In the past several years, the Company has positioned the division's product strategy by way of leveraging a key license agreement in order to sell products under various Maidenform® brands. In addition, the division develops and supplies products for sale under the private label brands of certain major retailers as well as the Company's own brand. Products are sold internationally to the divisionís customer base which includes a number of major retailers as well as specialty boutiques.
Hylton Karon - President, CEO and Director|
Hylton is a Graduate of Philadelphia University with a BSC degree in textile marketing and management. A member of the Groupís founding family, Hylton has over 30 years of experience in product development and marketing.
Hylton's creative ability has resulted in the development of many successful and patented products which are sold both in North America and Internationally. Hylton's leadership and motivational skills have been the main driving force for the Group's success to date.
Hilton Price - Chief Financial Officer and Director
Hilton is a Chartered Accountant with over thirty five years of experience covering a variety of industries and businesses. Hilton has been involved in most elements of the Group's strategic planning and has been responsible for financial oversight since the Group's inception.
Dr. Jeff Coyne - Chairman of the Board of Directors
Dr. Coyne is CEO of Provect Technologies, Inc., a U.S. based, enterprise level, time and attendance software company. He is a principal of CPR Turnaround LLC, a company that manages and advises companies in financial difficulty and he is a senior lecturing fellow at Duke University School of Law.
Dr. Coyne has previously served as a director of Ezenet (previously EZE on Toronto Stock Exchange) and ValueNet (previously VNE on the Exchange). His academic qualifications include BA, Economics, U.C. Berkeley; JK, Duke University School of Law. He is also a California licensed attorney.
Giancarlo Beevis - President and CEO, IFTNA
Giancarlo has been involved with the company for 10 years. He contributed expert knowledge to the company and is intrumental in the brand development of Intelligent Fabric Technologies North America. Today Giancarlo oversees the strategic direction and approvals for all Intelligent Fabric Technologies
North America and the development of future brands and Technologies.
Mark Cochran - Director
Dr. Cochran currently serves as Managing Director at Johns Hopkins Healthcare Solutions, an operating division of Johns Hopkins Medicine/HealthCare. His professional experience spans the spectrum of the global health care value chain, including drug discovery, development, research and management,
and venture capital initiatives. Dr. Cochran has held leadership positions in organizations such as Bayer Pharmaceuticals, Blanchette Rockefeller Neurosciences Institute, MDS Capital Corp. and NeuroVentures.
Mark Greenspan - Director
Mark Greenspan was Chief Financial Officer of The Medipattern Corporation, an Exchange listed company, from September 2002 until February 2010. Prior to that, he spent 18 years at Scotiabank in various capacities which included Chief Operating Officer of Scotiabankís e-commerce subsidiary,
CAO of Scotia Capital and Head of Integrated Support Services. Prior to joining Scotiabank, he spent 8 years at KPMG where he specialized in business valuations mergers and acquisitions. Mr. Greenspan is a Chartered Accountant and a Chartered Business Valuator.
Jason Garay - Board Member/Epidemiologist
Jason Garay is the Director of Communicable Disease Prevention and Control at Public Health Ontario. He is a graduate of the MHSc program in Community Health and Epidemiology at the University of Torontoís Faculty of Medicine. Following graduation, Jason practiced as an epidemiologist specializing
in communicable diseases in the Region of Durham. He then moved to the Region of York where he was the Manager of Surveillance for 5 years after which he joined Public Health Ontario to assume responsibility for communicable disease control for the province Ontario. Jason is the past President,
and Vice-president, of the Association of Public Health Epidemiologists in Ontario and the Chair of the Pan Canadian Epidemiology Network. Jason also holds faculty appointments at the University of Toronto as an Adjunct Lecturer.