What's Going On With Gulf Resources (GURE) Stock?
Portfolio Pulse from Henry Khederian
Gulf Resources, Inc. (NASDAQ:GURE) shares are down 10.4% to $1.08 after announcing the acquisition of crude salt fields in China. The deal involves a $38.6 million investment, with 80% paid in cash and 20% in company shares. The acquisition aims to boost bromine production by 2025.
July 05, 2024 | 3:15 pm
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Gulf Resources shares fell 10.4% following the announcement of a $38.6 million acquisition of crude salt fields in China. The deal involves significant cash outflow and share issuance, with production expected to start in 2025.
The significant drop in GURE's stock price is likely due to investor concerns over the large cash outflow and share issuance required for the acquisition. While the acquisition has long-term potential, the immediate financial impact and delayed production start may have spooked investors.
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