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Earth Science Tech, Inc. (OTC:ETST), a Florida-based biotechnology company specializing in pharmaceutical preparations with a market capitalization of $39.35 million and impressive revenue growth of 409% in the last twelve months, has revised the terms of its acquisition agreement with Las Villas Healthcare, LLC and Doconsultations.com, LLC, according to a recent 8-K filing with the U.S. Securities and Exchange Commission. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value estimates.
The amendment, announced today, reduces the total purchase price from $400,000 to $200,000. The initial agreement, dated January 30, 2025, had already seen the targets receive a payment of $50,000. Following this amendment, Earth Science Tech will pay the remaining $150,000 at the closing of the transaction. Despite recent stock volatility, with shares down 10.34% in the past week, the company maintains strong fundamentals with a healthy gross profit margin of 71.86%.
This closing is expected to follow the completion of a ninety-day due diligence period, which is currently in progress. The reduction in the purchase price represents a significant change in the terms of the acquisition, which may have implications for both Earth Science Tech and the companies it is acquiring.
The original filing indicates that the company’s strategic move to acquire these entities is part of its broader efforts to expand its operations within the healthcare sector. The details of the amendment were made public in line with regulatory requirements and to inform shareholders and potential investors of the changes in the acquisition’s financial terms.
The information in this article is based on a press release statement.
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