Movano Health (Nasdaq: MOVE), maker of the women’s health-focused Evie Ring, announced an investigation into apparent stock manipulation following its recent 1-for-15 reverse stock split. The company revealed that suspicious trading activity occurred between October 25-29, 2024, specifically identifying numerous single-share transactions that appeared designed to exploit the reverse split process.
“We are committed to transparency and protecting the interests of our Company and shareholders,” said John Mastrototaro, President and CEO of Movano Health. “It has come to our attention that several small cap stocks have suffered similar manipulation in recent weeks following their respective reverse stock splits, and we are in direct communication with securities regulators, legal counsel and other interested partners, as we pursue this issue to the fullest extent necessary.”
Movano Health, which went public in March 2021, implemented the reverse split as part of its corporate strategy while pursuing FDA 510(k) clearance for its EvieMED Ring, a medical-grade wearable device.
The company reported that it detected the manipulation attempt before any round-up shares were issued, and expects to maintain approximately 6.6 million shares outstanding post-split. This swift response demonstrates the importance of corporate vigilance in protecting shareholder interests.
The situation at Movano Health occurs at a critical juncture for the company, which recently relaunched its consumer-focused Evie Ring in September 2024.
