Company: GURE
Filing Date: 2025-07-16
Form Type: PRE 14A
Source: 0001193805-25-001026
Chunk: 31

Company: GULF RESOURCES, INC.
Filing Date: 2025-07-16
Form: PRE 14A
Chunk 31
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 shares will be available
for issuance, and we may issue such shares in future financings or otherwise. If we issue additional shares, the ownership interest of
holders of our Common Stock would be diluted. Also, the issued shares may have rights, preferences or privileges senior to those of our
Common Stock. The Company does not currently have any plans, proposal or arrangement to issue any of its authorized but unissued shares
of Common Stock.

Accounting Matters. The Reverse Split
will not affect the par value of our Common Stock. As a result, on the effective date of the Reverse Split, the stated capital on our
balance sheet attributable to our Common Stock will be reduced in proportion to the Reverse Split ratio (that is, in a one-for-four reverse
stock split, the stated capital attributable to our Common Stock will be reduced to 1/4 of its existing amount) and the additional paid-in
capital account shall be credited with the amount by which the stated capital is reduced. The per share net income or loss and net book
value of our Common Stock will also be increased because there will be fewer shares of our Common Stock outstanding.

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Potential Anti-Takeover Effect. Although
the increased proportion of unissued authorized shares to issued shares could, under certain circumstances, have an anti-takeover effect
(for example, by permitting issuances that would dilute the stock ownership of a person seeking to effect a change in the composition
of our Board or contemplating a tender offer or other transaction for the combination of the Company with another company), the Reverse
Split was not proposed in response to any effort of which we are aware to accumulate our shares of Common Stock or obtain control of us,
nor is it part of a plan by management to recommend a series of similar actions having an anti-takeover effect to our Board of Directors
and shareholders. Other than the Reverse Split, our Board of Directors does not currently contemplate recommending the adoption of any
other corporate action that could be construed to affect the ability of third parties to take over or change control of the Company.

The number of shares held by each individual shareholder
will be reduced if the Reverse Split is implemented. This will increase the number of shareholders who hold less than a “round lot,”
or 100 shares. Typically, the transaction costs to shareholders selling “odd lots” are higher on a per share basis. Consequently,
the Reverse Split could increase the transaction costs to existing shareholders in the event they wish to sell all