Gulf Resources Discusses Sales of Shares by Executive Officers
June 09 2017 - 8:30AM
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 a statement
on sales of shares in the Company by three executive officers.
On May 24, 2017, AST Investor Services, LLC (“ASTIS”) notified
its holders of personal brokerage accounts that it is filing a
Broker-Dealer Withdrawal with FINRA and ceasing its broker-dealer
operations as of June 15, 2017, and therefore would no longer
maintain personal brokerage accounts. Due to the short
timeframe certain of the Company’s executive officers who had
accounts at ASTIS were unable to find a new brokerage to hold their
shares. As a result, they decided to sell their shares
deposited at ASTIS, which is a portion of their total holding
shares. The executives each filed a Form 4 reflecting their
sales. ASTIS’s decision to cease its operations as a
broker-dealer has no impact on the business, operations, financial
condition or results of operations of the Company. This
action only had consequences for the personal brokerage accounts of
the executive officers.
The executives continue to hold 271,725 shares in the aggregate,
that were not on deposit at ASTIS and have agreed they will sign a
lock-up agreement with the Company to restrict the sale of the
remainder of their shares for the next three years.
Mr. Liu, Mr. Li, and Mr. Miao recognize the sale of these
securities is disappointing to investors. However, they believed
there were no other better viable alternatives in such a short
timeframe.
“This has been a very disturbing experience for me,” stated
Xiaobin Liu, the CEO of Gulf Resources. “We tried to find another
brokerage firm, but with the very short time frame, we thought we
had no other choice.”
“However,” Mr. Liu continued, “this experience may end up being
a good lesson for us. We now realize that we have to be more
proactive in doing things to help recognize shareholder value.”
“I am going back to the Board of Directors,” Mr. Liu concluded,
“to discuss alternatives for enhancing shareholder value. While we
believe the future of our company is very bright and will not sell
shares in the next three years, we believe this experience has
taught us an important lesson.”
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"), Shouguang City
Rongyuan Chemical Co, Limited (“ SCRC”) and Daying County Haoyuan
Chemical Company Limited (“DCHC”). 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.
SCRC is a leading manufacturer of materials for human and animal
antibiotics in China and other parts of Asia. DCHC was established
to further explore and develop natural gas and brine resources
(including bromine and crude salt) in China. For more information,
visit www.gulfresourcesinc.com.
Forward-Looking
StatementsCertain 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 (Haiyan Xu)
beishengrong@vip.163.com
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