SecureTech Innovations, Inc. (OTC: SCTH) completed a share‑reduction transaction on November 5 2025 that cancelled 4 million common shares, reducing the company’s outstanding share count to 31,370,414 and cutting the total number of shares by 11.3 %. The cancelled shares were first exchanged for 400 shares of Series A preferred stock before being retired, a step that preserves the company’s capital structure while eliminating dilution.
In the same filing, SecureTech issued 56,413 shares of common stock to two independent consultants at an implied value of $3.97 per share. The issuance was part of a broader effort to reward key advisors while maintaining a lean equity base. Together, the cancellation and consultant issuance represent a net reduction of 3,943,587 shares, underscoring the company’s aggressive approach to capital‑structure optimization.
The share‑reduction program is set against a backdrop of significant financial headwinds. In Q1 2025, the company reported zero revenue compared with $12,885 in Q1 2024, and its net loss widened to $94,365 from $81,481 the prior year. An auditor’s report raised doubts about SecureTech’s ability to continue as a going concern, prompting the company to seek additional financing and restructure operations. The cancellation therefore serves both as a defensive measure to improve earnings per share and as a signal of intent to stabilize the business.
SecureTech’s CEO, J. Scott Sitra, said the program is a key element of the company’s recapitalization strategy and a prerequisite for a planned uplisting to the NASDAQ in early 2026. The company has already moved from the OTCQB Venture Market to the OTCQB Venture Market in August 2025 and has engaged Craft Capital Management as an investment‑banking partner to accelerate capital formation. The share‑reduction plan is designed to bring the outstanding share count below 20 million by year‑end, a threshold that aligns with NASDAQ listing requirements and is expected to lift EPS and attract institutional investors.
Market sentiment around the announcement has been largely positive, driven by the anti‑dilutive nature of the share cancellation and the company’s clear path toward a national exchange listing. Investors view the reduction as a shareholder‑friendly signal that management believes the shares are undervalued. However, the underlying financial distress—zero revenue, widening losses, and auditor concerns—remains a headwind that could temper enthusiasm if the company fails to secure the necessary financing to support its growth initiatives.
The share‑reduction move, coupled with the consultant issuance and the company’s ongoing efforts to secure new capital, positions SecureTech to improve its per‑share metrics while addressing the financial challenges that prompted the program. The company’s focus on uplisting, strategic partnerships, and capital‑structure optimization signals a concerted effort to transition from a high‑risk OTC listing to a more stable national exchange platform, a shift that could enhance long‑term shareholder value if the company can navigate its current liquidity constraints.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.