iFabric Corp Announces Maidenform License Renewal
December 16, 2021
MARKHAM, ON / ACCESSWIRE / December 16, 2021 / iFabric Corp. ("iFabric" or the "Company") (TSX:IFA)(OTCQX:IFABF), today announced that its wholly owned subsidiary company, Coconut Grove Pads Inc. ("CGP"), has renewed its license and distribution agreement with HBI IP Holdings Switzerland GmbH ("HBI" and Maidenform LLC ("Maidenform"). The agreement covers the distribution by CGP of intimate apparel accessories and specialty bra solutions which, are marketed under various Maidenform brands.
In terms of the license agreement with HBI and Maidenform, the Company has a non-exclusive but protected right to use trademarks in connection with the manufacture, marketing, sale and distribution of various Maidenform® branded products, in the Company's market segment, in certain countries including, among others, the United States, Canada, Mexico and the United Kingdom. During the license term, the Company is required to pay a quarterly royalty on its net sales as defined in the agreement, on all products sold under the licensed marks. The effective royalty rates vary depending on the distribution channel and range from 0%-10%. Minimum annual royalties have been established for the year ending December 31, 2022 at US $160,000 and for the year ending December 31, 2023 at US $200,000. All additional administration fees are now included in the revised royalty rates. In addition, the Company is required to pay an advertising fee of 1% on its net sales as defined in the agreement, for the promotion of the licensed products. The license term is in effect until December 31, 2023.
"We are pleased to continue our longstanding relationship with the global Maidenform brand," said Hylton Karon, President and CEO of iFabric Corp. "The Maidenform brand is an important part of our offerings and, has allowed us to supply our products to some of the largest global retailers. The new agreement underscores the continued confidence that Maidenform has in CGP, from the signing of the original license agreement in January 2011 to the current time," concluded Hylton Karon.
