Earth Science Tech Inc. (OTC: ETST) held its first annual meeting of stockholders virtually on August 31, 2026, where shareholders approved several key proposals that could reshape the company's capital structure and governance. The approvals mark a significant step in the company's efforts to uplist to a national exchange such as Nasdaq or NYSE, a move that would enhance its visibility and access to capital.
Shareholders authorized the Board of Directors to pursue a reverse stock split if deemed necessary to meet the bid price requirements for an uplisting. The authorization is valid for 12 months, giving the Board flexibility to act at an opportune time. CEO and Chairman Giorgio R. Saumat emphasized that he will not support a reverse split unless it is clearly in the best interests of shareholders, according to the press release. A reverse split is often a prerequisite for companies trading on the OTC markets to meet the minimum bid price required by national exchanges.
In a move that could simplify the company's voting structure, stockholders authorized the Board's Independent Special Committee to negotiate the retirement of the Series B Preferred Stock. This retirement would eliminate the current dual-class voting structure, potentially making the company more attractive to institutional investors and aligning voting power with economic ownership. The dual-class structure often deters investment from those who prefer one share, one vote governance.
Additionally, shareholders ratified the appointment of Semple, Marchal & Cooper LLP as an independent registered public accounting firm, re-elected seven director nominees, and authorized a new non-dilutive executive compensation framework. The non-dilutive compensation structure is designed to align management incentives with shareholder interests without issuing additional shares, which can be dilutive to existing investors.
The company, a strategic holding company in the healthcare, pharmacy, and telemedicine sector, has been working to strengthen its financial position and appeal to a broader investor base. The approved proposals are part of a broader uplisting strategy that could provide ETST with greater liquidity, analyst coverage, and credibility. For more details on the meeting, see the company's news release at https://ibn.fm/HIqJ9.
Investors can also stay updated on ETST's latest developments through its newsroom at https://ibn.fm/ETST.
