What you need to know: • iFabric’s Intelligent Fabrics division is seeing explosive growth, led by its antibacterial and antimicrobial medical scrubs. Management recently guided for 267% YoY revenue growth in Q1. • The Company has seen a strong expansion of its distribution network in both big-box retailers and wholesale clubs in North America. • The scrubs market is expected to grow at a 9.4% CAGR until 2032. • IFA trades at 13.3x 2027E EBITDA compared to its closest peer, FIGS, at 21.3x, which traded at >40x back in its highest growth years. iFabric Corp. (IFA:TSX, IFABF:OTCQX) develops, licenses, and sells innovative technologies for textiles and apparel, with a growing focus on medical scrubs using its antibacterial and antimicrobial fabrics. The Company is seeing explosive growth in its Intelligent Fabric division, which we expect will grow 99% in 2026. IFA has a major opportunity ahead to continue gaining traction in the large medical apparel market and expand distribution with key partners. We are initiating coverage on IFA with a BUY rating and a $4.50/share target price. Investment Thesis Summary Pivoting to Antimicrobial Scrubs & Other Products. IFA has developed a technological application for medical scrubs that provides reduced bacterial/ pathogen proliferation on scrubs, confirmed by a peer-reviewed clinical trial. As such, the product can be marketed as antimicrobial and antiviral, providing a significant point of differentiation compared to traditional scrubs. Expanding Distribution Network. iFabric has seen stellar momentum in the growth of its distribution network over the last few months, securing a 1,000-store expansion for its scrubs in a leading U.S. big-box retailer as well as launching at a major Canadian wholesale club retailer. This represents only a fraction of the potential locations, allowing for expansion as management executes on growth. Excellent Revenue Growth with Margins to Follow. In 2025, IFA grew revenue 20% YoY to $32.9M, with the Intelligent Fabric division growing 33% YoY. Management has guided for Q1 revenue of $25-27M (+267% YoY at the midpoint), increased from $20-25M just weeks ago. This represents a major acceleration as the product gains traction, which we believe is only the beginning. Blue-Chip Partners. IFA sells its branded products in major retailers such as Walmart, Target, and Costco, but also licenses its technology to leading brands. This includes Lululemon, Roots, Adidas, and Under Armour, amongst many more. Industry Overview. The global medical scrubs market is expected to grow at a 9.4% CAGR to US$24.9B by 2032, supported by a growing U.S. healthcare workforce, post-COVID mandates, and the PFAS regulatory phase-out. Ownership. Management and insiders collectively own ~66% of the Company, led by its founder and Group President and CEO, Hylton Karon, who owns ~63% of IFA’s shares, providing exceptional alignment with shareholders. Valuation. IFA trades at 24.7x/13.3x 2026E/2027E EBITDA compared to its closest comparable, FIGS at 24.7x/21.8x and overall peers at 11.8x/10.1x. We look back to the highest-growth period for FIGS and LULU, concluding that a valuation of >30x forward EBITDA is not out of the question.