The production gear was bought in spring, 2018 but after the phase 1 production agreement inked with Ecovatec Solutions earlier this month, which provides access to its manufacturing facility, the equipment is no longer needed and was sold to a local company.
"The sale of the equipment converts an asset to money LeanLife can use to grow the company and increase production of its Omega-3 food ingredient as it anticipates significant customer demand in 2020," said Vancouver-based LeanLife.
This forecasted interest in LeanLife's product is a result of the recently announced agreement the company signed with Gavin Mah, an Omega-3 expert, who was hired to secure over $1 million in sales in the coming 12 months.
Mah has over 33 years of business development experience selling Omega-3 products, gaining experience at some of the largest flax oil companies in the Pacific Northwest.
He served as director of Canadian regulatory affairs at Nature’s Way and helped to lead the acquisition of fish oil supplement firm Ascenta Health.
Also in today's statement, LeanLife has agreed to issue a further around 7.4 million units of the company at a deemed price of C$0.05 each to settle around C$374,350 in debt.
Each unit consists of one company share and one transferable common share purchase warrant. Each warrant allows the holder to purchase a further share at an exercise price of $0.075 for 24 months from its issue.
The firm highlighted that the global Omega-3 market reached US$33 billion in 2016 and is expected to reach over US$57 billion by 2025, according to a report by Grand View Research.
LeanLife Health's products are long-term shelf-stable extractions from flax seed, which is a plentiful plant-based source of Omega-3, which gives them a significant advantage as an essential fortified food ingredient.
The products are available in oil, emulsion and powder forms and can be used as food additives or as nutraceuticals.
They have been used to make bread, noodles, cheese, yogurt, juice and milk products for the European market.
Shares gained 7.7% to stand at C$0.070 in Toronto.
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