Gulf Resources, Inc. Announces 1-for-5 Reverse Stock Split
January 27 2020 - 8:00AM
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 1-for-5
reverse stock split of its issued and outstanding shares of common
stock, which is expected be effective for trading purposes as of
the commencement of trading on Tuesday, January 28, 2020.
The reverse stock split is intended to increase the per share
trading price of the Company’s common stock to satisfy the $1.00
minimum bid price requirement for continued listing on The NASDAQ
Global Select Market. Trading of the Company’s common stock on The
NASDAQ Global Select Market will continue, on a post-split basis,
with the opening of the markets on Tuesday, January 28, 2020, under
the existing trading symbol “GURE” under the new CUSIP # 40251W
408. The reverse stock split reduces the number of shares of the
Company’s common stock outstanding from approximately 47.5 million
shares of common stock pre-reverse split to approximately 9.5
million shares of common stock post-reverse split.
The number of authorized shares of common stock and the par
value per share will remain unchanged. As a result of the reverse
stock split, every 5 shares of the Company’s pre-reverse split
common stock will be combined and reclassified into 1 share of
common stock. The number of outstanding options will be adjusted
accordingly, with outstanding options being reduced from
approximately 0.68 million to approximately 0.14 million. No
fractional shares will be issued in connection with the reverse
stock split. Stockholders who would otherwise hold a fractional
share of common stock will receive an increase to their common
stock as the common stock will be rounded up to a full share.
“Management and the Board of Directors agree that it is
favorable for investors that Gulf Resources’ shares continue to
trade on the NASDAQ Global Select Market and this reverse split
will fulfill the minimum share price requirement for continued
listing,” said Xiaobin Liu, Chief Executive Officer of Gulf
Resources, Inc.
Shareholders whose shares are in electronic form at brokerage
firms do not require action, as the effect of the reverse stock
split will automatically be reflected in their brokerage accounts.
The Company’s transfer agent will update its books and records to
reflect the reverse stock split. All book-entry and other
electronic positions representing issued and outstanding shares of
the common stock will be automatically adjusted. No action is
required by the Company’s shareholders in connection with the
reverse stock split.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"),
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, and materials for human and animal
antibiotics. 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 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 (Haiyan Xu)
beishengrong@vip.163.com
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