- While many capitalization structures are diluted in the landscape of over-the-counter (“OTC”) markets, Earth Science Tech is doing the opposite, as the management team owns over 47% of the shares
- This high level of insider ownership is significant, as it shows the leadership strongly believes in the company, and have financial outcomes tied closely to the stock’s performance
- As a result, this greatly reduces the risk that management benefits while investors don’t, as management is financially aligned with outside investors
In many over-the-counter (“OTC”) markets, capitalization structures are often diluted, and the incentives of management are misaligned, which may leave leadership unmotivated. However, Earth Science Tech (OTC: ETST), a strategic holding company, flips this idea on its head.
While the company’s robust Q2 revenue growth of $17.8 million in H1 Fiscal 2026, as well as its pivot to SIC Code 2834 (Pharmaceutical Preparations) have made headlines, a more subtle and significant story has begun to emerge through SEC filings.
These filings reveal a capital structure that is largely consolidated into the hands of those running the company. With ETST management holding 138.6 million shares of the company’s 292 million shares, this means that management holds 47.4% of the total shares.
For institutional investors, this high insider ownership is outstanding for mitigating risk. It shows that the leadership strongly believes in the company, and the financial outcomes for the team are tied closely to how the stock performs, just like it is for outside investors. It also reduces the risk that management benefits and investors don’t.
Also, while some executive teams receive stock grants or other zero-cost options, around 92% of the shares held by ETST leadership were purchased either on the open market or directly from the company.
The high percentage of ownership also isn’t due to a sudden or reactive buying spree. The filings confirm that management has been consistently using personal funds to acquire shares, dating back to 2023, and continuing into 2026. This confirms the company believes in the business model and what the company is doing.
Recent filings indicate the ETST CEO, Giorgio R. Saumat and several other key officers have been net buyers of the shares.
This high insider ownership also ensures the company is intensely focused on creating shareholder value, as even a tiny swing in the stock price could have massive financial implications for the team. Such high insider ownership also points to the company funding operations through cash flow, and not toxic financing.
While insider selling is often the norm nowadays, ETST is hoarding equity. With so many shares being held by those with deep knowledge of the company, the risk-reward profile for investors is attractive, as management is betting nearly half the company on its own success.
About Earth Science Tech Inc.
Earth Science Tech is a strategic holding company that aims to build value by acquiring and managing companies in industries like pharmaceuticals, telemedicine, healthcare, real estate, and others. The company’s approach prioritizes execution, long-term value creation, and capital discipline across the platforms, and it focuses on scaling businesses that are able to grow sustainably.
For more information, visit EarthScienceTech.com.
NOTE TO INVESTORS: The latest news and updates relating to ETST are available in the company’s newsroom at https://ibn.fm/ETST
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