Gulf Resources Announced the Closing of Equity Interest Transfer Agreement With Shouguang City Rongyuan Chemical Co., Ltd. an...
February 04 2015 - 8:30AM
Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the
"Company" or "GURE"), a leading manufacturer of bromine, crude salt
and specialty chemical products in China, today announced that the
Company has closed the Equity Interest Transfer Agreement
with Shouguang City Rongyuan Chemical
Co., Ltd ("SCRC"), and entered into a five
year lock up agreement with the four former equity owners
of SCRC for the 7,268,011 shares in GURE to be received by them in
connection with the transaction.
The Equity Interest Transfer Agreement was approved by the
regulatory authorities in China and updates have been made to the
register of members, and it has been registered and filed with
relevant industrial and commercial bureaus in China on February 4,
2015. Based on the agreement, GURE will issue 7,268,011
shares of GURE's common stock at a price of $2.00 per share to
the former equity owners of SCRC by February 10, 2015.
At time of the closing of the
transaction, GURE entered into a lock-up agreement with
the four former equity owners of SCRC who are confident with
respect to the Company's future growth. The shareholders have
agreed not to sell or transfer their shares for five years
from the date of the stock certificates evidencing their
shares.
The Company's CEO Xiaobin Liu
Stated, "the closing of this transaction will
lead Gulf Resources into a downstream business that we
believe will help GURE increase its profit margins, improve its
return on investment, produce more consistent and reliable earnings
and lessen our dependence on the economically sensitive bromine
industry. Entering into the lock-up agreement will provide our
shareholders with security that the shares held by the former
owners of SCRC will not disrupt the market. With this acquisition
and our new discovery of natural gas in Sichuan, we are very
excited about the opportunities that lie ahead of us and believe we
are on the right path to significantly increase shareholder value
and company's bright future."
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned
subsidiaries, Shouguang City HaoyuanChemical 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 and gas field explorations and papermaking chemical agents. 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 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.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu
beishengrong@vip.163.com
IR Manager
Max Ma
Max_vx@163.com
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