Business
Gulf Resources Announces Management Sale of Shares
SHOUGUANG, China, Dec. 22, 2023 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources” or the “Company”), a leading manufacturer of
About this update from Gulf Resources, Inc.
[{"type":"text","content":"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 bro...