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Gulf Resources Clarifies the Possible Effect of the Proposed Reverse Stock Split on the Company’s Proposed 2019 Omnibus Equity Incentive Plan
SHOUGUANG, China, Nov. 29, 2019 (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, Nov. 29, 2019 (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 clarified the possible effect of the proposed reverse stock split on the Company’s proposed 2019 Omnibus Equity Incentive Plan.\n On our 2019 third quarter earnings conference call held on November 14, 2019, a shareholder asked a question about the possible impact of the proposed reverse stock split on the proposed 2019 Omnibus Equity Incentive Plan that will be voted on at the annual shareholders meeting on December 18, 2019. The Company would like to clarify and make sure that all shareholders fully understand this subject. As disclosed in the definitive proxy statement filed with the US Securities Exchange Commission (“SEC”) on November 1, 2019, the Company has proposed to effect a reverse stock split to increase the market price of its common stock so that the Company is able to regain compliance with the NASDAQ minimum bid price requirement. As disclosed in the same definitive proxy statement, the Company is seeking approval of the stockholders to adopt the Company’s 2019 Omnibus Equity Incentive Plan (the “2019 Plan”). If the 2019 Plan is approved, awards under the 2019 Plan will be limited in the aggregate to 10,341,989 shares of our common stock, inclusive of the awards that were previously issued and outstanding under the Company’s 2007 Equity Incentive Plan, as amended. The Company believes that it has kept salaries and other expenses low and that it is in the best interest of the Company to provide incentives to its employees, directors, consultants, and advisors. Details of the proposals on the reverse split and 2019 Plan are available on the SEC’s website at https://www.sec.gov/Archives/edgar/data/885462/000119380519001384/e619148_def14a-gulf.htm. The Company’s 2019 Plan provides for proportionate adjustments to the number of shares subject to the plan in the event of a reverse stock split. Should the aforesaid reverse stock split be effected, the 2019 Plan provides for proportionate adjustments to the number of shares available for issuance and awardable, and as applicable, automatic proportionate adjustments to the shares awarded and the exercise price, grant price or purchase price relating to ...