Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 38

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 stock of the Company and cash
as follows: (1) RMB1,663,200 shall be paid in shares, calculated on a per share price ofUS$1.5, using the exchange rate RMB/US$:7.27.
These shares shall be issued by the Company to Seller D or Seller D's designated parties within three months after SHSI has inspected
and accepted the crude salt field in writing; (2) the balance shall be paid in cash before December 31, 2028.

On December
17, 2024, SHSI entered into an amendment to the acquisition agreement with Seller E, pursuant to which the Article 2. 2 of the agreement
has been amended as follows: Eighty percent (80%) of the total amount, equaling RMB36,628,320 had been paid on the date of signing the
contract by both parties. The remaining RMB9,157,080 shall be paid in a combination of common stock of the Company and cash as follows:
(1) RMB3,662,832 shall be paid in shares, calculated on a per share price of US$1.5, using the exchange rate RMB/US$:7.27. These shares
shall be issued by the Company to Seller E or Seller E's designated party within three months after SHSI has inspected and accepted the
crude salt field in writing; (2) the balance shall be paid in cash by SHSI to Seller E before December 31, 2028.

In accordance
to each amendment, the parties also acknowledged and agreed that, in compliance with the Nasdaq Listing Rule 5635, the issuance of shares
pursuant to the agreement may not exceed 19.9% of the total outstanding shares of common stock of the Company prior to the issuance of
the shares (the “19.9% Threshold”), unless such issuance is approved by the shareholders of the Company in accordance with
the Nasdaq rules and regulations. SHSI shall cause the Company to take all necessary steps to obtain such shareholder approval if the
issuance of shares under the agreement exceeds the 19.9% Threshold.

On December
30, 2024, SHSI and each of the sellers mutually acknowledged and confirmed that the salt land provided by each seller meets the acquisition
criteria, is in the anticipated usable condition, and has been accepted and handed over to SHSI.

Recent Developments

Nasdaq Compliance

On May 6,