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GURE > SEC Filings for GURE > Form 8-K on 28-Nov-2012All Recent SEC Filings

Show all filings for GULF RESOURCES, INC.

Form 8-K for GULF RESOURCES, INC.


28-Nov-2012

Entry into a Material Definitive Agreement, Financial Statements and Exhibit


Item 1.01 Entry into a Material Definitive Agreement.

On November 26, 2012, Gulf Resources, Inc. (the "Company") and Shouguang City Haoyuan Chemical Company Limited, a wholly owned subsidiary of the Company (the "SCHC"), entered into an Asset Purchase Agreement (the "Agreement") with Chengyong Zhao, a resident of the People's Republic of China (the "Seller"), pursuant to which SCHC shall, upon closing, acquire all right, title and interest in and to all assets owned by the Seller utilized in the production of bromine, located at Guantai Village, Shouguang City Yangkou Township, including without limitation, machinery, equipment and inventory, and any warranties associated therewith (the "Purchased Assets").

In consideration for the Purchased Assets and for the value of the rights to the leased property located at Guantai Village, Shouguang City Yangkou Township (the "Leased Property"), SCHC shall pay to the Seller, upon closing, a total consideration of RMB 62 million (approximately US $9.86 million) (the "Purchase Price"), of which RMB 31 million shall be paid in cash and the remainder shall be paid through the issuance of 3,806,728 shares of the Company's common stock, par value $0.0005 per share (the "Common Stock").

An amount equal to RMB 6.2 million (approximately US $0.99 million) of the Purchase Price shall be delivered to the Seller upon the execution of the Agreement as a security deposit (the "Security Deposit") pending the final assessment of the condition of the Purchased Assets and the Leased Property. If the assessment is not acceptable to SCHC, the parties shall negotiate a reduction in the Purchase Price. If a mutually acceptable amount is not agreed, SCHC shall have the right to terminate the Agreement and the Security Deposit shall be returned. If the assessment is acceptable to SCHC, the remainder of the Purchase Price shall be delivered to the Sellers within twenty (20) days from the date that SCHC receives a satisfactory assessment report (the "Closing Date"). Further, if SCHC is unable to deliver the remainder of the Purchase Price in the time frame prescribed, the Seller has the right to terminate the Agreement and to retain the Security Deposit.

As a result of this Agreement, the Purchased Assets including, without limitation, any and all bromine that can be produced on the Leased Property, buildings, equipment, wells, pipelines, and power circuits will be acquired by SCHC; provided, however, that SCHC shall not be liable for any debts, obligations and/or liabilities of the Seller relating to the Purchased Assets and the Leased Property.

A copy of the Agreement is attached to this Current Report on Form 8-K as Exhibit 10.1 and is incorporated herein by reference.



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Description
10.1 Asset Purchase Agreement


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