SHANDONG, China, Feb. 21,
2012 /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, is issuing this press
release regarding recent market speculation as to the Company's
plans with respect to a potential third-party investment in the
Company, or a privatization transaction.
There have been recent market rumors about the implications for
the Company of an investment letter of intent ("LOI") between
Shandong Ocean Bright Stone Industry Fund Management Co., Ltd., a
PRC-based investment fund ("Ocean Bright"), and Shandong Haoyuan
Industrial Group Co., Ltd. ("SHIG"). SHIG is an entity
controlled by our Chairman and is a record owner of approximately
11.9% of our common stock. SHIG, together with the Chairman
and his family, owns in the aggregate approximately 38.5% of our
common stock.
We have been informed by Chairman Yang that, on February 20, 2012, SHIG did execute an LOI with
Ocean Bright regarding a potential investment program in
China's bromine exploitation
industry, with the objective of consolidating those investments
under SHIG and ultimately seeking a stock exchange listing for SHIG
in China. We have been told that the LOI is highly preliminary
and conditional, being subject to, among other things, due
diligence and the commitment of definitive funding for potential
PRC bromine investments. The Company is not a party to the
LOI, but the Chairman has informed us that SHIG and Ocean Bright
are considering the Company as a potential principal component to
their strategy of consolidating the bromine industry in
China, and, accordingly, as a
potential candidate for a privatization in order to satisfy the
listing requirements for SHIG in China.
As of this time, the Company has not received from either SHIG
or Ocean Bright any formal or informal offer as to any type of
investment or acquisition transaction, or any other inquiry seeking
negotiations or due diligence. The Company's Board of
Directors will take appropriate steps in the best interests of the
Company's shareholders to evaluate fully and independently any such
offer or inquiry that may be received from SHIG or Ocean Bright in
the future.
"We will continue to focus on our daily operations, exploring
strategic alternatives where appropriate, and creating value for
our shareholders," said Xiaobin Liu,
Chief Executive Officer of Gulf Resources. "If negotiations between
the Company and SHIG and Ocean Bright begin and progress to a
definitive point meriting shareholder disclosure or consideration,
then we will of course update the market at that time. We
however cannot give any assurance as to the timing of any of these
negotiations, and, if they do begin, whether they will progress to
any definitive agreement."
The Company follows a policy of not commenting on market rumors
and takeover speculation, but has made an exception in this limited
situation. We do not expect to have further comment on this
matter at this time.
The reports that, to our knowledge, appeared in the Chinese
language press referencing the LOI are set forth below. The
Company makes no representation as to the accuracy of these reports
or the statements or quotations included therein.
http://news.chemnet.com/item/2012-02-09/1620648.html
http://news.dsqq.cn/ROLLNEWS/2012/02/082232387527.html
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.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 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.
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CCG Investor
Relations Inc.
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Helen
Xu
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David Rudnick, Account
Manager
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Email:
beishengrong@vip.163.com
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Phone:
+1-646-626-4172
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Web:
http://www.gulfresourcesinc.com
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Email:
david.rudnick@ccgir.com
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Crocker Coulson,
President
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Phone:
+1-646-213-1915
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Email:
crocker.coulson@ccgir.com
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Web:
http://www.ccgirasia.com
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SOURCE Gulf Resources, Inc.