Gulf Resources Announces Buy Back of shares from Company’s CEO, CFO and COO
December 02 2022 - 8:30AM
Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we,” or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China announced that the Company has
entered into a stock repurchase agreement dated as of November 30,
2022, in which the Company agrees to purchase 80,000 shares from
each of CEO Xiaobin Liu, COO Naihui Miao, and CFO Min Li in a
privately negotiated transaction based on the closing price of the
stock of $3.5931 per share on Wednesday, November 30, 2022.The
closing of the repurchase transactions is expected to occur in
December 2022 and subject to customary closing conditions.
Over the past year, the Company has received communications from
many investors who have been concerned about the potential overhang
on the market from insider selling. This insider selling has been
caused primarily by the fact that management returned more than 11
years of portion of their cash compensation earned for their
services with the Company, agreed to work for nominal or no cash
compensation, and needed money for living expenses.
In 2021, the Company management had expected the Company’s stock
price to improve, but COVID-19 circumstances and supply chain
disruptions have caused the delay in opening some facilities of the
Company, while political tension between the U.S. and China may
have caused U.S. listed Chinese stocks to underperform. Despite the
strong and above guidance earnings in the first nine months of
2022, Gulf’s shares have not performed as well as the Company
expected.
The Company concluded that the threat of insider sales may had
also contributed to the underperformance of the stock price. But
while the Company is unable to get money out of China to buy back
stock in the U.S., the Company could try to remove some of the
potential overhang by buying some stock from management in
China.
The Company met with management and suggested that buying a
block of stock from each of the three senior leaders may relieve
some of the potential overhang. Accordingly, each of the three
senior executives agreed to sell 80,000 shares of stock at this
time to the Company. The retirement of these shares may also
positively impact earnings and help to limited reduce some of the
pressure from market.
The Company remains optimistic about its future. However, the
Company wants to show investors that it is willing to respond to
their concerns. While the Company wishes it was able to take money
out of China, it believes this transaction may demonstrate that the
Company may try its best to respond to the investors.
About Gulf Resources, Inc.Gulf Resources, Inc.
operates through four wholly-owned subsidiaries, Shouguang City
Haoyuan Chemical Company Limited ("SCHC"), ShouguangYuxin Chemical
Industry Co., Limited ("SYCI"), Daying County Haoyuan Chemical
Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co.
Ltd. (“SHSI”). 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. Through SHSI, the
Company manufactures and sell crude salt. 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, the risks associated with the COVID-19
pandemic outbreak, 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:
Helen Xu (Haiyan Xu)
beishengrong@vip.163.com
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