Earth Science Tech Inc (OTCMKTS:ETST) is an interesting company considering the fact that it is involved in not only pharmaceutical and nutraceutical spaces but also in the medical devices industry. However, on Thursday the Earth Science stock was one of the notable laggards and ended the day with declines of as much as 28%.
The selloff in the stock was triggered by an announcement from the company yesterday with regards to the structure of its acquisition of Peaks Curative LLC, JCR Medical Equipment and RxCompoundstore.com, LLC. It should be noted that earlier on in the week Earth Science had made an announcement with regards to the new direction of the company.
It was revealed that Earth Science was going to complete the acquisition of the three above mentioned entities in dual phase transactions. The transactions are going to be conducted in both cash as well as Earth Science common stock.
It has been suggested that the decision to complete the transaction in two distinct phases is going to help the three companies in integrating their operations more far more effectively with Earth Science. However, the news did not seem to have been welcomed by investors and it is going to be interesting to see if the Earth Science can stage a recovery today.
