Company: GURE
Filing Date: 2025-07-25
Form Type: DEF 14A
Source: 0001193805-25-001103
Chunk: 29

Company: GULF RESOURCES, INC.
Filing Date: 2025-07-25
Form: DEF 14A
Chunk 29
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 Reverse Split

While the Board believes that the Company’s
Common Stock would trade at higher prices after the consummation of the Reverse Split, there can be no assurance that the increase in
the trading price will occur, or, if it does occur, that it will equal or exceed two (2) to ten (10) times the market price of the Common
Stock prior to the Reverse Split. In some cases, the total market value of a company following a reverse stock split is lower, and may
be substantially lower, than the total market value before the reverse stock split. In addition, the fewer number of shares that will
be available to trade could possibly cause the trading market of the Common Stock to become less liquid, which could have an adverse effect
on the price of the Common Stock. We cannot provide any assurance that the Company’s Common Stock will meet The NASDAQ Capital Market
continued listing requirements following the Reverse Split. The market price of the Common Stock is based on our performance and other
factors, some of which may be unrelated to the number of our shares outstanding.

In addition, there can be no assurance that the
Reverse Split will result in a per share price that will attract brokers and investors who do not trade in lower priced stock.

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Principal Effects of the Reverse Split

Subject to the discretion of the Board of Directors,
on the effective date of the Reverse Split, each two (2) to ten (10) shares of our Common Stock issued and outstanding immediately prior
to the Reverse Split effective date (the “Old Shares”) will automatically and without any action on the part of the shareholders
be converted into one (1) share of our Common Stock (the “New Shares”). In the following discussion, we provide examples of
the effects of a one-for-five reverse stock split.

Corporate Matters.The Reverse Split would have the following
effects based upon the number of shares of Common Stock outstanding as of July 15, 2025:

| • | in the case of a one-for-five reverse stock split, every five (5) of our Old Shares owned by a shareholder would be exchanged for one (1) New Share; and |

| • | the number of shares of our Common Stock outstanding will be reduced from 13,346,618 shares to approximately 2,669,324 shares. |

The Reverse Split will be effected simultaneously
for all of our outstanding Common Stock and the exchange ratio will be the same for all of our outstanding