- Palla Pharma (PAL) enters into a sale and leaseback agreement of its $33.1 million manufacturing site in Melbourne
- Upon receiving funds for the Coolaroo location, the company made a gain of around $21 million
- Palla retains acess to $5 million of undrawn capacity under its existing credit facility
- The 18-month lease arrangement, with an option to extend for six months, allows continued site access
- Palla Pharma shares are in the green, up 2.6 per cent, trading at 40 cents at 2:08 pm AEDT
Palla Pharma (PAL) has entered into a sale and leaseback agreement of its $33.1 million manufacturing site in Melbourne.
The company received funds for the Coolaroo location before transaction costs and expenses, resulting in an estimated gain of $21 million.
Execution of the sale contract and financial settlement occurred simultaneously.
Palla has repaid all outstanding shareholder loans from sale proceeds and has agreed to keep $5 million of undrawn capacity under its existing credit facility.
The 18-month lease arrangement, with an option to extend for a further six months, allows the company continued access to the site.
Palla Pharma shares are in the green, up 2.6 per cent, trading at 40 cents at 2:08 pm AEDT.