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LeanLife Health Inc
Symbol LLP
Shares Issued 56,115,318
Close 2019-02-25 C$ 0.085
Market Cap C$ 4,769,802
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LeanLife, Ecovatec sign LOI for testing, production

2019-02-25 11:08 ET - News Release

Mr. Stan Lis reports

LEANLIFE SIGNS LETTER OF INTENT WITH ECOVATEC FOR TESTING AND PRODUCTION

LeanLife Health Inc. has signed a letter of intent with Ecovatec Solutions Inc., a local Canadian nutraceutical manufacturing company, to provide LeanLife Health the use of its facilities for testing and production.

The letter of intent provides a clear path forward for LeanLife to move from testing and the creation of samples to interim and long-term production of its unique and patented omega-3 plant-based products. Ecovatec has a state-of-the-art manufacturing facility in Abbotsford, B.C., Canada.

Upon the signing of a phase 1 testing agreement, LeanLife intends to validate a new, high-volume, high-efficiency, sanitary manufacturing process. This testing has the potential to create even further improvements in the production process and generate additional intellectual property for the company. LeanLife expects phase 1 to commence immediately following the signing of a definitive agreement.

Following a successful trial run of the new process, samples will be tested to ensure product quality, after which further samples will be created to send to customers for their own qualification.

The letter of intent further contemplates that upon validation of product quality, LeanLife intends to enter into a phase 2 interim production agreement, which will immediately allow the company to begin meeting customer demand for its products. A phase 3 long-term production arrangement is a further option available to LeanLife under the letter of intent, should customer demand accelerate in the medium term.

Initial production will be located at the Ecovatec facility using equipment and processes supplied by LeanLife in a toll processing arrangement that maintains protection of the company's intellectual property. This has the advantage of allowing LeanLife to avoid the overhead costs and capital expenditure of acquiring its own production facility, while allowing for immediate commercialization of its innovative plant-based food products.

"Completion of this letter of intent marks a significant milestone for LeanLife Health, as it allows the company to move towards immediate commercialization without bearing any substantial overhead. Leanlife intends to start sending samples of its plant-based food products to prospective customers as well as fill existing product orders on hand. Accordingly, and following a definitive agreement, Leanlife will be able to generate revenues this year while protecting our proprietary process," commented Stan Lis, chief executive officer.

About LeanLife Health Inc.

LeanLife Health's products are shelf-stable extractions from flax seed, a plentiful plant-based source of omega-3, that give them a significant advantage as a fortified food ingredient.

The products can be used as food additives or nutraceuticals and have been used to make bread, noodles, cheese, yogurt, juice and milk products for the European market.

We seek Safe Harbor.

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