Gulf Resources, Inc. (NASDAQ:GURE) shares are trading lower by 10.4% to $1.08 during Friday’s session. The stock is trading lower, pulling back following Wednesday’s strength, after the company announced the signing of agreements to acquire crude salt fields.
What Happened?
Subsidiary Shouguang Hengde Salt Industry agreed to purchase crude salt fields in China for RMB280,762,000 (about USD $38,619,257). The acquisition involves 5 parcels totaling 5,141,000 square meters (approximately 1,270 acres).
80% of the payment (RMB224,609,600 or approximately USD $30,895,406) will be made in cash upon signing, with the remaining 20% paid in company shares within three months, post-inspection. This acquisition will allow Gulf Resources to reopen two bromine factories and drill more wells, with production expected to start in the first half of 2025.
CEO Xiaobin Liu expressed satisfaction with the agreements, highlighting the potential to increase production and ensure flood protection for their facilities. Despite China’s economic challenges, Liu is optimistic about the future of bromine and crude salt, noting their strategic importance and the potential for price increases due to geopolitical issues and new battery technologies.
EXCLUSIVE: Tesla Shorts Were Profitable This Year Until Shareholders Approved Musk's Pay Package, Expert Says
How To Buy GURE Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Gulf Resources’ case, it is in the Materials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, GURE has a 52-week high of $2.63 and a 52-week low of $0.85.