NEW YORK and SHANDONG, China, March 6 /Xinhua-PRNewswire-FirstCall/ -- Gulf Resources, Inc. (the "Company") (OTC Bulletin Board: GFRE - News), a leading producer of bromine, crude salt and specialty chemicals in China, today announced that it and the eight investors who had entered into the Fixed Price Standby Equity Distribution Agreement on May 7, 2007 have decided to terminate that Agreement. No shares have been sold or distributed under the Agreement. The Company has decided to pursue more cost efficient funding sources due to the appreciation of the Company's common stock since the Agreement was established.

 

The Fixed Price Standby Equity Distribution Agreement was established to allow the Company to periodically sell to the investors up to 60 million shares of the Company's common stock for a total purchase price of up to $60 million (a per share purchase price of $1.00 per share). The investors' obligation to purchase shares of common stock under the Fixed Price Standby Equity Distribution Agreement was subject to certain conditions, including the Company's obtaining an effective registration statement for the resale of the common stock to be sold under the Fixed Price Standby Equity Distribution Agreement.

 

The commitment period under the Fixed Price Standby Equity Distribution Agreement was to expire on the earliest to occur of the date on which the investors had purchased an aggregate amount of $60 million shares of the Company's common stock under the Fixed Price Standby Equity Distribution Agreement, eighteen months after the effective date of the Agreement, or the date the Agreement was earlier terminated as defined in the Agreement.