Kiland Ltd (ASX:KIL) is set to boost its finances by A$6 million after wholly-owned subsidiary KI Seaport Pty Ltd entered into a conditional sale agreement for its pontoon asset.
The pontoon has been sold to Berkshire Seas Limited and the funds will be applied to the costs of reverting the company's estate on Kangaroo Island to agriculture.
This agreement provides for the sale of the pontoon for net cash proceeds of US$4.3 million (A$6.06 million equivalent at the current exchange rate).
The company says that the carrying value of the asset was A$5.0 million at June 30, 2021.
This sale is subject to numerous conditions including completion of necessary port and safety clearance works required for the pontoon to be towed.
Completion is expected to occur on or before February 16, 2022.
The buyer will lodge a 15% deposit which will be held by an escrow agent until completion.