Purchasing three multi-layer extruders to support future growth

MONTRÉAL, April 21, 2022 /CNW Telbec/ - Imaflex Inc. ("Imaflex" or the "Corporation") (TSXV: IFX) is pleased to announce that it has signed equipment purchase agreements over the past quarter for three new co-extrusion blown film lines ("extruders") to help meet heightening demand for its products. 

"In recent years Imaflex has seen consistent, profitable growth in its Canadian and U.S. operations," commented Mr. Joe Abbandonato, President and Chief Executive Officer of Imaflex.  "During this time, we have been upgrading all major extrusion lines in order to meet heightening market demand for enhanced film quality, which permits our converting customers' equipment to run at ever increasing speeds.  Simultaneously, and as forecasted, we successfully reached our goal of selling out the capacity of our higher margin 5-layer line.  Demand has been so robust on the niche products we created for this line that we recently purchased three new co-extruders."  They are expected to generate additional extrusion capacity of between 12 to 15 million pounds per year, depending on product mix.  Once an extruder is installed and fully operational, it should be fully utilized within 18 months.  Barring any supply chain challenges, the extruders are expected to arrive at varying intervals ending the second quarter of 2023.  

"In preparation for the significant volume increase these investments will create, we recently strengthened our Canadian and U.S. leadership teams by adding two new results-oriented operations managers, who have deep flexible packaging industry experience," continued Mr. Abbandonato.  Both individuals have a strong track record of success in managing and mobilizing teams and driving operational efficiencies, while optimizing production processes within and between cross-functional units.  "Having these people in place will create and ensure our ability to generate and grow our organic revenues more aggressively in the coming years."    

In connection with the equipment purchases, Imaflex has access to financing of CDN $10.0 million (the "loans").  The loans commence depending upon receipt of each extruder and the principal is to be repaid in 60 equal monthly installments.  Currently, this financing would bear interest at 4.89%, however the interest rate will fluctuate going forward depending on the timing the loans will be disbursed.   

About Imaflex Inc.

Founded in 1994, Imaflex is focused on the development and manufacturing of innovative solutions for the flexible packaging space.  Concurrently, the Corporation develops and manufactures films for the agriculture industry.  The Corporation's products consist primarily of polyethylene (plastic) film and bags, including metalized plastic film, for the industrial, agricultural and consumer markets.  Headquartered in Montreal, Quebec, Imaflex has manufacturing facilities in Canada and the United States.  The Corporation's common stock is listed on the TSX Venture Exchange under the ticker symbol IFX.  Additional information is available at www.imaflex.com.

Cautionary Statement on Forward Looking Information

Certain information included in this press release constitutes "forward-looking" statements within the meaning of Canadian securities laws.  Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the management of the Corporation, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies.  The Corporation cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Imaflex to be materially different from the Corporation's estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance.  These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Corporation's most recent Management Discussion and Analysis filed on SEDAR at www.sedar.com and on the investor section of the Corporation's website at www.imaflex.com.  The Corporation disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law.  Readers are cautioned not to put undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Imaflex Inc.

Copyright 2022 Canada NewsWire

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