Gulf Resources Announces Management Sale of Shares
December 22 2023 - 8:30AM
Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources” or the
“Company”), a leading manufacturer of bromine, crude salt and
specialty chemical products in China, today announced that on
December 20, 2023, three members of management of the Company,
namely Xiaobin Liu (Chief Executive Officer), Naihui Miao (Chief
Operating Officer) and Min Li (Chief Financial Officer), each
entered into an equity interest transfer agreement, pursuant to
which each agreed to sell 110,000 shares of common stock of the
Company to a third party for a purchase price of $2.50 per share in
a privately negotiated transaction. The transactions are
anticipated to close in January 2024. The buyer is a local Chinese
investor with knowledge of the bromine industry.
Considering that the Company had not performed well in recent
years, the Company and its executive officers mutually agreed and
returned all or a portion of their cash compensation earned for
their services with the Company in year 2021, which may be
considering pay back later when business improves. For more
information about this disclosure, please see the Company’s Annual
Report on Form 10-K for the fiscal year 2022 filed with the United
States Securities and Exchange Commission on March 31, 2023.
Mr. Xiaobin Liu explained, “When we made the agreement to return
11 ½ years of salary, we anticipated our stock price would be much
higher. Unfortunately, due to the slowdown in the Chinese economy
and the issues related to China-based companies listed in the
United States, our stock price has continued to decline.”
Continuing, Mr. Liu expressed, “Our management team members had
to sell shares to support our families. In addition, we are pleased
to have a Chinese investor willing to pay approximately twice the
market price to establish a position in Gulf Resources. We hope the
confidence shown by this investor will highlight the value of our
company to other investors.”
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through four wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
(“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”),
Daying County Haoyuan Chemical Company Limited (“DCHC”) and
Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company
believes that it is one of the largest producers of bromine in
China. Elemental Bromine is used to manufacture a wide variety of
compounds utilized in industry and agriculture. Through SYCI, the
Company manufactures chemical products utilized in a variety of
applications, including oil and gas field explorations and
papermaking chemical agents, and materials for human and animal
antibiotics. Through SHSI, the Company manufactures and sells crude
salt. DCHC was established to further explore and develop natural
gas and brine resources (including bromine and crude salt) in
China. For more information, visit www.gulfresourcesinc.com.
Forward-Looking Statements
Certain statements in this news release contain forward-looking
information about Gulf Resources and its subsidiaries business and
products within the meaning of Rule 175 under the Securities Act of
1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and
are subject to the safe harbor created by those rules. The actual
results may differ materially depending on a number of risk factors
including, but not limited to, the general economic and business
conditions in China, future product development and production
capabilities, shipments to end customers, market acceptance of new
and existing products, additional competition from existing and new
competitors for bromine and other oilfield and power production
chemicals, changes in technology, the ability to make future
bromine asset purchases, and various other factors beyond its
control. All forward-looking statements are expressly qualified in
their entirety by this statement and the risks factors detailed in
the company's reports filed with the Securities and Exchange
Commission. Gulf Resources undertakes no duty to revise or update
any forward-looking statements to reflect events or circumstances
after the date of this release.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu
beishengrong@vip.163.com
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