It doing so via the disposal of its 60% stake in a company called Unigreg Limited to Pacific Glory Development.
As well as the sale proceeds, which will be staggered over two payments, with the final £500,000 instalment expected within the next year, Alliance will be repaid a £1.5mln shareholder loan.
Bank debt reduced
The proceeds of the deal will be used to reduce bank debt.
Alliance said it remains committed to China, having set up an affiliate in Shanghai to sell a range child nutraceutical products in the People’s Republic. It also has a distributor in the same city for its Kelo-cote product for scarring.
Alliance also confirmed it will continue to market the Forceval brand in the UK.