Investors buy stake in Lifeline

A U.S.

investor group bought a $6.7 million equity position in Lifeline BioTechnologies Inc., a publicly held company based in Reno.

Lifeline, in turn, sold its Virtual Apothecary subsidiary to the investment group.

Lifeline said it will receive $800,000 in cash and up to $1.2 million in royalties, which are dependent on sales of Virtual Apothecary.

Virtual Apothecary introduces physicians to use of nutraceutical products.

William Reeves, founder and president of Lifeline, said Virtual Lifeline didn't fit into the distribution strategy for the remainder of Lifeline's products.

Reeves said the company hopes to use proceeds from the sale to acquire companies or products that could generate earnings while Lifeline works on its core products, early-detection systems for breast and ovarian cancer.

The investor group will take three positions on the seven-member board of directors at Lifeline.