Probiotec (ASX:PBP) has entered a contract for the sale of its production facility in New South Wales for $2.2 million.
The facility catered for production of weight loss and sports nutrition products, which will now be consolidated into the company's main pharmaceutical facility in Victoria.
This will deliver operational savings as well as boosting cash reserves.
$1 million of the proceeds will be spent on the integration of the two operations into the single building, and the remaining $1.2 million will be used for debt reduction.
The company is involved in the manufacturer, marketing and distribution of a diverse range of prescription and over-the-counter pharmaceuticals, complementary medicines and specialty ingredients.
During the 2014 financial year the company booked $68.9 million in revenue for a net profit of $900,000.
The company seems lightly valued at $16 million.
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