SHOUGUANG, China, Dec. 22, 2023 (GLOBE NEWSWIRE) — 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.
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