Earth Science Tech Shareholders Approve Uplisting Strategy and Governance Reforms

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 significantly alter the company's capital structure and governance. The approvals, which include authorization for a reverse stock split and the potential retirement of Series B Preferred Stock, are aimed at facilitating an uplisting to a national exchange such as Nasdaq or NYSE. This development matters because it represents a critical step for the healthcare, pharmacy, and telemedicine holding company to enhance its visibility, liquidity, and access to institutional investors.

Shareholders authorized the Board of Directors to pursue a reverse stock split within a 12-month period, if deemed necessary to meet the bid price requirements for an uplisting. The Board retains discretion on whether to execute the split, and CEO and Chairman Giorgio R. Saumat emphasized that he will not support any action that harms shareholder value. A reverse split is often a prerequisite for companies trading over-the-counter to meet the minimum price thresholds of major exchanges, and its approval signals that ETST is serious about elevating its market presence.

In a move that could streamline corporate governance, stockholders also 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 typically concentrates voting power in the hands of preferred shareholders. Eliminating this structure could make the company more attractive to a broader range of investors and simplify decision-making processes. The proposal reflects a growing trend among small-cap companies to adopt more shareholder-friendly governance as they prepare for larger markets.

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 re-election of directors provides continuity, while the compensation framework aims to align executive incentives with long-term performance without diluting existing shareholders. The accounting firm ratification ensures independent oversight of financial reporting, which is essential for meeting the rigorous compliance standards of national exchanges.

The full details of the proposals and the meeting outcomes are available in the company's news release at https://ibn.fm/HIqJ9. For ongoing updates, investors can visit ETST's newsroom at https://ibn.fm/ETST. These approvals collectively position Earth Science Tech to potentially transition from the OTC market to a national exchange, which could increase trading volumes, improve analyst coverage, and provide greater access to capital. However, the actual uplisting remains contingent on meeting exchange requirements and market conditions. The company's strategic focus on healthcare, pharmacy, and telemedicine sectors suggests it aims to leverage a higher listing to fund growth initiatives and partnerships. As ETST moves forward, the market will watch whether these governance and capital structure changes translate into tangible value for shareholders.