Movano Health Opens Investigation to Expose Apparent Stock Manipulation Following Reverse Stock Split

Rhea-AI Summary

Movano Health (Nasdaq: MOVE) has initiated an investigation into suspected stock manipulation following their recent reverse stock split. The company's CEO, John Mastrototaro, stated they are working with securities regulators, legal counsel, and other partners to protect shareholder interests. The company noted that several other small-cap stocks have experienced similar manipulation after implementing reverse stock splits. The reverse stock split was approved by shareholders at the annual meeting on July 9, 2024, with details available in the proxy statement filed on May 28, 2024.

Positive

• Company taking proactive measures to protect shareholder interests
• Active engagement with securities regulators and legal counsel to address potential manipulation

Negative

• Potential stock manipulation affecting share price
• Market volatility following reverse stock split implementation

Insights

Legal Expert

The investigation into potential stock manipulation following a reverse stock split raises serious regulatory concerns. Post-reverse split manipulation is a known issue for small-cap stocks, often involving coordinated trading patterns designed to artificially influence share prices. The company's proactive stance in engaging with regulators and legal counsel demonstrates proper corporate governance, though such investigations typically face challenges in proving intentional manipulation.

While the announcement shows management's commitment to shareholder protection, the investigation's outcome remains uncertain and could involve lengthy regulatory proceedings. The timing, following their reverse stock split implementation, aligns with patterns seen in other small-cap companies, suggesting possible systemic market behavior targeting vulnerable stocks during corporate actions.

Company Communicating with Securities Regulators, Legal Advisors and Other Partners to Protect Interests of Shareholders

PLEASANTON, Calif., Oct. 31, 2024 /PRNewswire/ -- Movano Health (Nasdaq: MOVE) (the "Company") announced today that it has opened an investigation to expose apparent manipulation in trading of the Company's common shares, following the recent announcement of a shareholder approved reverse stock split.

"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."

Additional information regarding the Reverse Stock Split can be found in the Company's definitive proxy statement for the annual meeting of stockholders of the Company held on July 9, 2024, which was filed with the U.S. Securities and Exchange Commission on May 28, 2024, a copy of which is available at www.sec.gov and on the Company's website. 

About Movano Health 

Founded in 2018, Movano Inc. (Nasdaq: MOVE) dba Movano Health, maker of the Evie Ring (www.eviering.com), is developing a suite of purpose-driven healthcare solutions to bring medical-grade data to the forefront of wearables. Featuring modern and flexible form factors, Movano Health's devices offer an innovative approach to delivering trusted data to both customers and enterprises, capturing a comprehensive picture of an individual's health data and uniquely translating it into personalized and intelligent insights.

Movano Health is developing its proprietary technologies and wearable medical device solutions to enable the future use of data as a tool to proactively monitor and manage health outcomes across a number of patient populations that exist in healthcare. For more information on Movano Health, visit https://movanohealth.com/.

Forward Looking Statements

This press release contains forward-looking statements concerning our expectations, anticipations, intentions, beliefs, or strategies regarding the future. These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially from those anticipated. Therefore, you should not place undue reliance on forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding plans with respect to the timing and impact of the Reverse Stock Split, the commercial launches of the Evie Ring and EvieMED Ring; our expectations regarding potential commercial opportunities; planned cost-cutting initiatives; anticipated FDA clearance decisions with respect to our products; expected future operating results; product development and features, product releases, clinical trials and regulatory initiatives; our strategies, positioning and expectations for future events or performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and in our other reports filed with the Securities and Exchange Commission, including under the caption "Risk Factors."  Any forward-looking statement in this release speaks only as of the date of this release. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

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SOURCE Movano

FAQ

What action is Movano Health (MOVE) taking regarding suspected stock manipulation?

Movano Health has opened an investigation and is communicating with securities regulators, legal counsel, and other partners to address suspected stock manipulation following their reverse stock split.

When did Movano Health (MOVE) shareholders approve the reverse stock split?

Movano Health shareholders approved the reverse stock split at the annual meeting held on July 9, 2024.

What is Movano Health (MOVE) doing to protect shareholder interests?

Movano Health is working with securities regulators, legal counsel, and other partners to investigate and address potential stock manipulation to protect shareholder interests.