Company: GURE
Filing Date: 2025-07-03
Form Type: S-3
Source: 0001193805-25-000970
Chunk: 10

Company: GULF RESOURCES, INC.
Filing Date: 2025-07-03
Form: S-3
Chunk 10
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 coverage of our Company or fail
to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our share price or trading volume
to decline.

Sales of a substantial number of our shares in the public market, or the perception that they may occur, could cause the price of our shares to fall.

The market price of our shares of common stock
could decline as a result of sales of a large number of our shares in the public market following this offering. A substantial majority
of our outstanding shares are freely tradeable without restriction or further registration under the Securities Act of 1933, as amended
(the “Securities Act”). Volatility or a reduction in the market price of our shares could have an adverse effect on the market
price of the shares and existing warrants. The perception that these sales might occur may also cause the market price of our shares to
decline.

Because we do not anticipate paying any cash dividends on our shares in the foreseeable future, capital appreciation, if any, will be your sole source of gain.

We anticipate that we will retain our earnings,
if any, for future growth and therefore do not anticipate paying cash dividends in the future. As a result, only appreciation of the price
of our shares will provide a return to shareholders.

If a U.S. Holder is treated as owning at least 10% of our shares, such U.S. Holder may be subject to adverse U.S. federal income tax consequences.

For U.S. federal income tax purposes, if a U.S.
Holder is treated as owning (directly, indirectly or constructively) at least 10% of the value or voting power of our stock, such person
may be treated as a “United States shareholder” with respect to us, or any of our subsidiaries, if we or such subsidiary is
a “controlled foreign corporation.” If we have one or more U.S. subsidiaries, certain of our non-U.S. subsidiaries could be
treated as a controlled foreign corporation regardless of whether we are treated as a controlled foreign corporation (although there are
recently promulgated final and currently proposed Treasury regulations that may limit the application of these rules in certain circumstances).

Certain United States shareholders of a controlled
foreign corporation may be required to report annually and include in their U.S. federal taxable income their pro rata share of the controlled
foreign corporation’s “Subpart F income” and, in computing their “global intangible low-taxed income,” “tested
income” and a