LeanLife Health Inc (CVE:LLP) has struck a sales agreement with RD Heritage Group LLC for its omega 3 products.
RD Heritage will 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.
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.
Royalty to be paid to RD Heritage
For RD Heritage's services, LeanLife will issue RD Heritage 800,000 share purchase warrants at an exercise price of 40 cents each, which will carry a cashless feature, and expire in two years.
It will also pay a royalty to RD Heritage equal to 10% of all sales generated by Heritage under the sales agreement.
If RD Heritage generates total sales of US$10mln, LeanLife will issue it with 1mln shares and grant RD an exclusive licence on the company's technology to produce its products for Indonesia, the Middle East and North Africa, and India.
Terms of such a licence will be negotiated at a later date.