Gulf Resources, Inc. (NASDAQ: GURE) shares had yet to move on the last session before Christmas, as the company, a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that three members of management of the Company, namely CEO Xiaobin Liu, Chief Operating Officer Naihui Miao and Chief Financial Officer Min Li, each entered into an equity interest transfer agreement Wednesday, pursuant to which each agreed to sell 110,000 shares of common stock of the Company to a third party for a purchase price of $2.50 per share in a privately negotiated transaction. The transactions are anticipated to close in January 2024. The buyer is a local Chinese investor with knowledge of the bromine industry.
Considering that the Company had not performed well in recent years, the Company and its executive officers mutually agreed and returned all or a portion of their cash compensation earned for their services with the Company in year 2021, which may be considering pay back later when business improves. For more information about this disclosure, please see the Company’s Annual Report on Form 10-K for the fiscal year 2022 filed with the United States Securities and Exchange Commission on March 31, 2023.
Liu explained, “When we made the agreement to return 11 ½ years of salary, we anticipated our stock price would be much higher. Unfortunately, due to the slowdown in the Chinese economy and the issues related to China-based companies listed in the United States, our stock price has continued to decline.”
GURE shares were unchanged at Thursday’s closing price of $1.40.
