MARKHAM, ONTARIO--(Marketwired - Feb. 27, 2017) - iFabric Corp. (TSX:IFA), hereinafter referred to as "iFabric" or the "Company", today announced that its subsidiary companies, Coconut Grove Pads Inc., Intelligent Fabric Technologies (North America) Inc. and 2074160 Ontario Inc., have entered into agreement with the Bank of Montreal ("BMO") for the provision of certain debt facilities. The facility with 2074160 Ontario Inc. is a secured $1.75 million facility, $1.415 million of which will be used to repay the indebtedness owing to the Business Development Bank of Canada and the remainder of which will be used for working capital. The facility with Coconut Grove Pads Inc. and Intelligent Fabric Technologies (North America) Inc. is a secured $3.5 million facility that will be used to fund the day to day expenses of the Company.

The loan with 2074160 Ontario Inc. is secured by a first mortgage over land and buildings located at 525 Denison Street, Markham, Ontario, a general security agreement from 2074160 Ontario Inc., an assignment of rents, as well as a guarantee and security from the Company, Coconut Grove Pads Inc., Intelligent Fabric Technologies (North America) Inc. and Coconut Grove Textiles Inc. The loan is repayable on demand and bears interest at the BMO Prime Rate plus 0.75%.

The loan with Coconut Grove Pads Inc. and Intelligent Fabric Technologies (North America) Inc. is secured by a general security agreement from each borrower as well as a guarantee and security from the Company, 2074160 Ontario Inc. and Coconut Grove Textiles Inc. The first $1,250,000 under the loan will be un-margined and the remaining $2,250,000 will be governed by a margin of the borrowers' accounts receivable and inventory. Advances are available under the loan either by way of Canadian Prime rate based advances or U.S. Base rate advances. The loan bears interest at the BMO Prime Rate or USD Base rate plus 0.75% in each case. The loan is repayable in full on demand.

"I am extremely pleased to have concluded these new banking agreements with the Bank of Montreal for a number of reasons," stated Hylton Karon, President and CEO of iFabric. "Firstly, the strength of our balance sheet has allowed us to provide expansion funding for iFabric on a non-dilutive basis. Further, based on our current net cash position, the full amount of $3.8 million in additional borrowings is currently available to us to fund the anticipated strong growth in both of our divisions. Finally, the favourable pricing of the new loans will result in substantial interest savings to iFabric," concluded Mr Karon.

ABOUT iFABRIC CORP:

iFABRIC CORP. currently has 26 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, the anticipated strong growth in both of the Company's divisions and its use of funds from the loan facilities described in this press release.

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.