Eastland sells subsidiary for $1.8m

Perth-based Eastland Medical plans to offload more subsidiaries after it today accepted a $1.8 million offer to sell subsidiary Medical Industries Australia.

Eastland, which is developing malaria treatment medication ArTiMist, said it had sold the subsidiary to private outfit Alpine Medical.

The sale will boost the company's cash position by about $1.8 million and settlement is excepted by the end of this month, Eastland said in a statement.

Eastland chief executive Dermot Patterson said the cash proceeds from the sale will be used to augment working capital and fund the company's ArTiMist project.

"[The sale] is consistent with the Eastland strategy to dispose of non-core assets and allow Eastland to focus on developing its pharmaceutical projects," he said.

Mr Paterson added that Eastland had completed a major restructure of its WA-based medical supply business, Westcoast Surgical and Medical Supplies, and will now call for expressions of interest for the sale of the subsidiary.

Shares in Eastland climbed 0.1c to 8.1c at 13:49 AEDT.