Earth Science Tech, Inc. (OTC:ETST), a Florida-based biotechnology company specializing in pharmaceutical preparations, announced the completion of two strategic acquisitions and the launch of a new brand, as detailed in a recent 8-K filing with the SEC.
On Monday, Earth Science Tech finalized the purchase of Avenvi, LLC, a real estate holding entity. The deal was settled for a total of $1,058,788.30, with an initial payment of $258,788.30 and four subsequent monthly payments of $200,000.
The acquisition includes approximately four acres of undeveloped residential land, a commercial property with a 5,000-square-foot standalone building, and Avenvi's cash holdings. The CEO and Chairman of Earth Science Tech, Giorgio R. Saumat, was the seller, and the company's Board of Directors approved the transaction.
Additionally, the company acquired Mister Meds, LLC, a Texas-based firm, for $54,200 in cash. This transaction involved Earth Science Tech's COO and Board Director, Mario G. Tabraue, as the seller. The Board also reviewed and approved this acquisition.
In parallel with these acquisitions, Earth Science Tech has ventured into the pet and wildlife industry with the introduction of Zoolzy, a brand under Peaks Curative, LLC. Zoolzy offers specialized compounded medications for pets and wildlife, formulated by RxCompoundstore.com, LLC.
Furthermore, the company has relocated its principal office to a new address in Miami, FL. The new space adds approximately 1,125 square feet to the existing administrative space, totaling around 7,125 square feet, which includes pharmacy operations and off-site storage.
Lastly, Earth Science Tech has repurchased 11,545,898 shares of its common stock as part of a $5 million repurchase program launched on January 29, 2024. The buyback program is set to expire on December 31, 2025, and the company has made it clear that the program may be suspended or discontinued at any time.
This report is based on the latest SEC filing by Earth Science Tech, Inc.
In other recent news, Earth Science Tech, Inc. has disclosed new compensatory arrangements for its top executives. The company's Board of Directors has approved a twelve-month Employment Agreement for CEO Giorgio R. Saumat and COO Mario G. Tabraue, as stated in a recent 8-K filing with the SEC. From October 1, 2024, the CEO and COO will receive eighteen percent and twelve percent of the company's monthly cash receipts, respectively.
This payout structure is contingent upon Earth Science Tech's net profit growing quarter over quarter. If the company fails to meet this profit increase, the executive compensation agreement will be renegotiated.
The filing also reveals a significant change for COO Mario G. Tabraue who will step down from all his current positions within the company's wholly-owned subsidiaries to focus solely on his responsibilities as COO. These are the recent developments within the company.
InvestingPro Insights
Earth Science Tech's recent strategic moves, including acquisitions and brand launches, are reflected in its impressive financial performance. According to InvestingPro data, the company has shown extraordinary revenue growth, with a 7,462.31% increase in the last twelve months as of Q1 2025. This aligns with the company's expansion efforts and new ventures like the Zoolzy brand.
The company's profitability is also noteworthy, with a gross profit margin of 69.4% and an operating income margin of 13.29% in the same period. These figures suggest that Earth Science Tech is effectively managing its costs while growing its revenue base.
InvestingPro Tips highlight that Earth Science Tech has a perfect Piotroski Score of 9, indicating strong financial health. This score aligns well with the company's recent acquisitions and share repurchase program, suggesting prudent financial management. Additionally, the tip noting that the company operates with a moderate level of debt is particularly relevant given its recent acquisitions and expansion activities.
For investors seeking more comprehensive analysis, InvestingPro offers 6 additional tips for Earth Science Tech, providing a deeper understanding of the company's financial position and market performance.
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