Food additives specialist LeanLife Health Inc (CVE:LLP) has received a preliminary order from RD Heritage Group reserving up to US$10mln of the firm's flaxseed-based Omega 3 ingredients.
LeanLife has developed a patented process to isolate omega 3 fatty acids from flax (linen) seeds.
The products are sold as a food additive to food processors making such items as bread, noodles and milk products.
It comes after in January this year, LeanLife struck a sales agreement with RD Heritage, which sees the latter market and sell the company's products and assist with marketing strategies.
It will also carry out market analysis to define a global sales strategy and appoint distributors to increase sales opportunities.
Terms of today's order will remain in effect for 12 months following the start of production at LeanLife’s processing facility in Vancouver, BC, LeanLife said.
Processing equipment is currently being installed and production is anticipated toward the end of the second quarter of 2018.
"We are excited that RD Heritage sees the potential for such a significant amount of business with the food producers in its network during the first year that our new facility is in production," said Stan Lis, chief executive of LeanLife.
“The last six months have been crucial to LeanLife, as we accessed technology late in 2017 that can dramatically increase output of our Omega 3 food ingredients and enable us to meet large orders.
Vancouver launch near..
"With the launch of our Vancouver facility drawing near, we will be reflecting input from RD Heritage as we finalize our initial production plans.”
The global Omega 3 market was valued at US$10bn in 2016 and is expected to reach US$16bn by the end of 2023, growing at a CAGR (compound annual growth rate) of 7.57% between 2016 and 2023.