Earth Science Tech Inc. (OTC: ETST) held its first annual meeting of stockholders virtually on August 31, 2026, where shareholders approved several proposals that could significantly alter the company's capital structure and governance. The approvals are central to the company's strategy to uplist to a national exchange such as Nasdaq or the New York Stock Exchange, a move that would increase visibility, liquidity, and access to institutional investors.
Shareholders authorized the Board of Directors to pursue a reverse stock split if necessary to meet the minimum bid price requirements for an uplisting. The authorization is valid for 12 months, giving the Board flexibility to act when market conditions are favorable. A reverse split would reduce the number of outstanding shares and increase the stock price, potentially satisfying exchange listing standards. Giorgio R. Saumat, CEO and Chairman of the Board, emphasized that he will not support a split that disadvantages shareholders, according to the company's press release (https://ibn.fm/HIqJ9).
In a related move, 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, which concentrates voting power in the hands of preferred shareholders. Eliminating the dual-class structure could make the company more attractive to potential investors and simplify its governance, aligning with best practices for public companies.
Additionally, shareholders ratified the appointment of Semple, Marchal & Cooper LLP as an independent registered public accounting firm, re-elected seven director nominees, and approved 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 would dilute existing ownership.
The approvals come as Earth Science Tech, a strategic holding company in the healthcare, pharmacy, and telemedicine sector, seeks to strengthen its position in a competitive industry. Uplisting to a national exchange would provide greater access to capital and enhance the company's credibility. The retirement of the Series B Preferred Stock would also streamline decision-making and reduce the influence of a single class of shareholders, potentially making the company more appealing to a broader investor base.
While the reverse split authorization is a key step, the Board retains discretion on whether to implement it. The company's leadership has indicated that any decision will be made with careful consideration of shareholder value. The authorization is valid for 12 months, during which the Board can monitor market conditions and regulatory requirements.
The annual meeting marked the first time shareholders convened since the company's incorporation, signaling a new phase of shareholder engagement. The proposals passed with strong support, reflecting confidence in the company's strategic direction. Investors can find more information about ETST in the company's newsroom at https://ibn.fm/ETST.
