Movano Health, maker of the Evie Ring, says an internal investigation into apparent manipulation of its common shares following shareholder approval of a 1-for-15 reverse stock split revealed a large number of single share transactions were executed in an attempt to take advantage of the reverse split shares at the beneficial owner level. 

The company said the large number of single share transactions occurred between when the company announced the split on Oct. 25 and its effective date on Oct. 29. 

Movano said that the activity was detected before any round-up shares were issued, and it continues to expect the number of common shares outstanding to be around 6.6 million after the reverse split. 

The wearables company announced it opened the investigation last week, just a week after an SEC filing showed shareholders' approval of the 1-for-15 reverse stock split. 

"We are committed to transparency and protecting the interests of our Company and shareholders," John Mastrototaro, president and CEO of Movano Health, said in a statement. 

"It has come to our attention that several small cap stocks have suffered similar manipulation in recent weeks following their respective reverse stock splits. We are in direct communication with securities regulators, legal counsel and other interested partners, including affected companies, as we pursue this issue to the fullest extent necessary."

THE LARGER TREND

Movano Health went public in March 2021, and its stock (NYSE: MOVE) is currently trading on the NYSE at around $3.73 per share. 

The company is seeking FDA 510(k) clearance for its EvieMED Ring, a smart ring that combines medical and wellness metrics, including pulse oximetry and metrics related to energy and the logging of mood, sleep and activity,

In September, the company relaunched its Evie Ring, a wearable designed specifically for women with a trend analysis feature and an open design to adjust the ring size. The Ring has an accompanying app that allows users to track and understand metrics associated with their health and wellness. 

Another health-tracking ring maker is Finland-based Oura. Last week, Oura announced it agreed to acquire data company Sparta Science, which offers a platform that collects and analyzes health and performance information. Sparta marks the company's third acquisition in two years. 

Oura previously acquired fellow Finnish company Veri, which offers personalized metabolic health programs, and digital identification startup Proxy through an all-equity deal.