SHANDONG, China, Dec. 22,
2011 /PRNewswire-Asia-FirstCall/ -- 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 its
wholly-owned subsidiary Shouguang City Haoyuan Chemical Company
Limited ("SCHC") has signed an agreement to acquire manufacturing
assets involved in bromine production from Liangcai Zhang, an
individual resident of the People's
Republic of China.
"The acquisition will result in additional annual production
capacity of approximately 3,000 tons of bromine based on the
company’s own assessment and expand the consolidated annual
production capacity of SCHC to 44,547 tons of bromine, based on the
annual production of 41,547 tons of bromine evaluated by a
third-party independent international appraisal firm, Grant Sherman
Appraisal Limited, in November 2011
before the acquisition. We expect the additional production of
bromine from these new assets to add approximately $2.2 to 2.3 million in incremental gross profit
before tax annually," stated Xiaobin
Liu, Chief Executive Officer of Gulf Resources "The company
will continue with its acquisition strategy and look for
appropriate targets."
Consideration for the asset purchase is approximately
$10 million (RMB 63 million) in cash and upon the closing of
the transaction, no later than10 days after receiving the
satisfactory assessment report, SCHC will acquire the buildings,
wells, machinery, equipment, pipelines, and power circuits owned by
the sellers, and any warranties associated therewith, located at 3
kilometers west of the Yangkou Village, south of Youyi road in
Shouguang City Yangkou Township. The Company expects to resume
production with the newly acquired assets by the end of first
quarter 2012 after repair and adjustment.
The closing of the transaction is subject to certain closing
conditions, including a final assessment of the condition of the
assets. Further details on the terms of this transaction can be
found in the Company's 8-K which is expected to be filed with the
U.S. Securities and Exchange Commission on December 22, 2011.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC") and Shouguang Yuxin Chemical Industry Co., Limited
("SYCI"). 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 & gas field explorations and as
papermaking chemical agents. For more information about the
Company, please visit http://www.gulfresourcesinc.cn.
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 the PRC, 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
Cautionary 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.
Gulf Resources,
Inc.
|
CCG Investor Relations
Inc.
|
|
Helen Xu
|
David Rudnick, Account
Manager
|
|
Email: beishengrong@vip.163.com
|
Phone:
+1-646-626-4172
|
|
Web: http://www.gulfresourcesinc.cn
|
Email: david.rudnick@ccgir.com
|
|
|
|
|
|
Crocker Coulson,
President
|
|
|
Phone:
+1-646-213-1915
|
|
|
Email:
crocker.coulson@ccgir.com
|
|
|
Web: http://www.ccgirasia.com
|
|
|
|
SOURCE Gulf Resources, Inc.