Response from GURE IR
the following notes is what I just sent to a few investors regarding the response from the management and now I forward it to you and hope you could fine what you looking for. And as we are short staffed in recent days due to business trip for me and maternity leave for some other staff, the company decided not issue a press as we used to, however you are always welcomed to let us know if we could be of any help and we will get back to you as soon as we can.
The management responed that they believed the adding to the capacity will benefit the company in the long run, specially when the economy is reaching almost the bottom and likely to turn booming next year from their point of view and therefore it might gradually require more production capacity to cope with the growth of the economy in the future. And secondly, there are many attractive assets outthere in the market, mostly in terms of the assets' price due to the economy condition, including the one we acquired and disclosed in the lastest 8K. Therefore the management believe the acquisition enabled the company to benefit from current market condition. Dispite the undervalued share prices, the company have to issue shares for half of the consideration to secure the deal as it was required by the asset seller, or otherwise end up with way higher quote in 100% cash, or might even lose the deal in stead. The management totally understand how it might impact our shareholders and they wish to let investors know that they've done their best in negociation and overall the asset is still worth buying given the two main reasons setforth above despite the issurance of shares.
Please let me know if you have any further inquiry. Thanks
Max
