The phase 1 production agreement permits LeanLife to use the advanced manufacturing facility of this local Canadian nutraceutical company, according to a statement.
It follows a previous testing agreement with Ecovatec during which the company validated its scalable, proprietary process and produced a certified product so incredibly high in purity and quality that it set a new near-impassable standard in the market.
Leanfife said the agreement will allow it to begin production using its recently upgraded manufacturing equipment that was purchased to increase capacity and lower costs, thereby improving profit margins for the company.
Once the efficiencies of this improved production process materialize, the company intends to enter into a further agreement with Ecovatec where they will mutually benefit from increased economies of scale.
LeanLife expects to commence production within the coming weeks, allowing it to build inventory and meet the anticipated significant customer demand for its products.
"The signing of this agreement allows LeanLife to begin production and benefit from the resulting efficiencies of our upgraded equipment as we build inventory to meet forecasted customer demand in 2020," said CEO Stan Lis.
LeanLife's stock recently traded up 18% to C$0.06 a share following the announcement.
--ADDS stock price--
Contact the author: [email protected]
Follow him on Twitter @PatrickMGraham