MONTREAL, QUEBEC–(Marketwired – Dec. 16, 2016) – IBEX Technologies Inc. (“IBEX” or the “Company”) (TSX VENTURE:IBT) today reported its financial results for the quarter ended October 31, 2016.

“While first quarter sales and net profit were down versus an atypically strong year ago quarter, we are quite pleased with the overall results for this quarter” said Paul Baehr, IBEX President and CEO. “Our expectation continues to be for flat sales in this fiscal year, and negative cash flow due to the investment we are making in a new fermentation suite in Montreal which will allow to internalize the upstream production of our heparinases.”

Note: All figures are in Canadian dollars unless otherwise stated. The Company’s audited consolidated financial statements for the year ended July 31, 2016 and the accompanying notes and the related management’s discussion and analysis can be found on the Company’s website at www.ibex.ca or under the Company’s profile on SEDAR at www.sedar.com.

FIRST QUARTER FISCAL 2017 FINANCIAL RESULTS

Sales for the quarter ended October 31, 2016 totaled $1,210,574 compared to $1,414,875 in the same period of the prior year.

The Company reported net earnings of $198,888, as compared to net earnings of $360,206 in the year ago period. The decrease in earnings traced mainly to the sales decrease of $204,301.

Cash and equivalents decreased by $17,457 during the quarter ended October 31, 2016 as compared to the year ended July 31, 2016. Net working capital increased by $115,542 during the quarter ended October 31, 2016 as compared to the year ended July 31, 2016.

LOOKING FORWARD

During the quarter the Company entered into an agreement with the National Research Council of Canada to lease space at the Royalmount facility in Montréal, Québec for the purpose of outfitting a bacterial fermentation suite. The average yearly rent over the next five years will be $45,000. Concurrently the Company also purchased a 160L fermenter which will be installed in this suite during the 2017 fiscal year. The fermenter purchase price plus facility modification costs are expected to be approximately $400,000.

We expect flat sales in the coming fiscal year as one of our major customers depletes inventory they have built up to accommodate a change to a new production facility. This, combined with the investment in our new Montréal fermentation suite, is expected to lead to negative cash flows for Fiscal 2017, however we forecast an improving picture in the following years if the US/CAN exchange rate continues to hold.

The Company also continues to work on a number of projects with our key customers, some of which it hopes will result in additional revenues in Fiscal 2017 and beyond. However, we cannot give any assurances that any of these projects will come to fruition and produce revenues.

Management believes that the Company has sufficient funds to meet its obligations and and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.

ABOUT IBEX

IBEX manufactures and markets proteins for biomedical use through its wholly owned subsidiaries IBEX Pharmaceuticals Inc. (Montreal, QC) and Bio-Research Products, Inc. (North Liberty, IA). IBEX Pharmaceuticals also manufactures and markets a series of arthritis assays which are widely used in osteoarthritis research.

For more information, please visit the Company’s website at www.ibex.ca.

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

Safe Harbor Statement

All of the statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, as they are based on the current assessment or expectations of management, inherently involve numerous risks and uncertainties, known and unknown. Some examples of known risks are: the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which IBEX does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation or otherwise. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. IBEX disclaims any intention or obligation to update these statements, except if required by applicable laws.

In addition to the risk factors identified above, IBEX is, and has been in the past, heavily reliant on three products and five customers, the loss of any of which could have a material effect on its profitability.