Wearables-company Movano Health, maker of the Evie Ring, announced it has opened an investigation into apparent manipulation in trading of its common shares a week after an SEC filing shows shareholders approved a 1-for-15 reverse stock split. 

"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," John Mastrototaro, president and CEO of Movano Health, said in a statement.

At Movano's 2024 Annual Meeting of Stockholders on July 9, stockholders approved a proposal to authorize its board of directors to effect a reverse stock split of the company's common stock at a ratio between 1-for-2 and 1-for-30.

According to the SEC Filing on Oct. 25, the board approved the reserve stock split at a ratio of 1-for-15.

The common stock was to begin trading on the New York Stock Exchange (NYSE) on a split-adjusted basis on Oct. 29. The reverse did not change the stock's authorized shares or the stock's par value ($0.0001 per share). 

Once effective, every 15 shares of the stock issued would be automatically reclassified into one share of common stock, thus reducing the number of issued and outstanding shares from approximately 99.5 million to around 6.6 million.   

The company expects the split will increase the bid price of the common stock and allow it to regain compliance with the $1.00 minimum average closing price required of stocks traded on the NYSE.  

No change will be made to the company's trading symbol MOVE in connection with the split.

THE LARGER TREND

Movano Health's stock (NYSE: MOVE) is currently trading on the NYSE at around $3.33 per share, down from a high of $92.93 per share in April 2021. The company went public in March 2021. 

In August, the company reported its Q2 2024 financial results, noting it did not report revenue during the period as "previously deferred revenue was offset by customer refunds."

Movano Health reported an operating loss of $6.4 million in the second quarter of 2024, compared to a loss of $7.4 million in the same period last year. Total cash and cash equivalents were $16.9 million in Q2 2024.

The company is currently 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, logging of mood, sleep and activity,

In September, the company announced the relaunch of its Evie Ring, a wearable designed specifically for women with a trend analysis feature and an open design to adjust the ring size. The company said the Ring would be immediately available on the market again after "a hiatus to address initial customer feedback and supply chain challenges."

The Evie Ring has an accompanying app that allows users to track and understand metrics associated with their health and wellness. 

In June, the Massachusetts Institute of Technology (MIT) announced that it was partnering with Movano Health to use its Evie Ring's continuous health-monitoring capabilities to study COVID-19 and chronic Lyme disease.