Movano Health Provides Update on Investigation to Expose Apparent Stock Manipulation Following Reverse Stock Split
Movano Health (MOVE) is investigating apparent stock manipulation following its recent reverse stock split. The company detected suspicious trading activity between October 25-29, 2024, involving numerous single-share transactions seemingly aimed at exploiting the fractional shares round-up convention. Movano identified this activity before any round-up shares were issued and maintains its expected post-split outstanding shares at approximately 6.6 million. The company is working with securities regulators and legal advisors to address this issue, noting that other small-cap stocks have faced similar manipulation attempts following their reverse splits.
Movano Health (MOVE) sta indagando su un apparente manipolazione delle azioni dopo il recente frazionamento inverso delle azioni. L'azienda ha rilevato attività di trading sospette tra il 25 e il 29 ottobre 2024, con numerose transazioni di singole azioni apparentemente destinate a sfruttare la convenzione di arrotondamento delle azioni frazionarie. Movano ha identificato questa attività prima dell'emissione di qualsiasi azione arrotondata e mantiene la stima delle azioni in circolazione post-frazionamento a circa 6,6 milioni. L'azienda sta collaborando con i regolatori del settore titoli e consulenti legali per affrontare questa problematica, notando che anche altre azioni a bassa capitalizzazione hanno subito tentativi simili di manipolazione dopo i loro frazionamenti inversi.
Movano Health (MOVE) está investigando una aparente manipulación de acciones tras su reciente división inversa de acciones. La empresa detectó actividades de trading sospechosas entre el 25 y el 29 de octubre de 2024, involucrando numerosas transacciones de una sola acción que parecían destinadas a aprovechar la convención de redondeo de acciones fraccionarias. Movano identificó esta actividad antes de que se emitieran acciones de redondeo y mantiene su estimación de acciones en circulación después de la división en aproximadamente 6.6 millones. La empresa está colaborando con reguladores del mercado de valores y asesores legales para abordar este problema, señalando que otras acciones de pequeña capitalización han enfrentado intentos similares de manipulación tras sus divisiones inversas.
모바노 헬스 (MOVE)는 최근의 역 분할 이후 나타나는 주식 조작 가능성을 조사하고 있습니다. 이 회사는 2024년 10월 25일부터 29일 사이에 한 주 단위의 여러 거래가 의심스러운 활동으로 나타났으며, 이는 분수 주식의 반올림 관행을 이용하려는 것으로 보입니다. 모바노는 반올림 주식이 발행되기 전에 이러한 활동을 식별하였으며, 분할 후 예상되는 유통 주식 수를 약 660만 주로 유지하고 있습니다. 이 회사는 이 문제를 해결하기 위해 증권 규제 기관 및 법률 자문과 협력하고 있으며, 다른 소형주가 역 분할 후 유사한 조작 시도에 직면한 사실을 언급했습니다.
Movano Health (MOVE) enquête sur une apparente manipulation des actions suite à son récent regroupement d'actions. L'entreprise a détecté des activités de trading suspectes entre le 25 et le 29 octobre 2024, impliquant de nombreuses transactions d'une seule action, apparemment destinées à exploiter la convention de regroupement des actions fractionnaires. Movano a identifié cette activité avant l'émission de toute action regroupée et maintient son estimation des actions en circulation après le regroupement à environ 6,6 millions. L'entreprise collabore avec les régulateurs des valeurs mobilières et des conseillers juridiques pour traiter ce problème, notant que d'autres actions à faible capitalisation ont également été confrontées à des tentatives similaires de manipulation après leurs regroupements inversés.
Movano Health (MOVE) untersucht die offensichtliche Manipulation von Aktien nach ihrem kürzlichen Aktien-Split. Das Unternehmen stellte zwischen dem 25. und 29. Oktober 2024 verdächtige Handelsaktivitäten fest, bei denen zahlreiche Einzelaktientransaktionen offenbar darauf abzielten, die Rundungsregelung für Bruchstücke auszunutzen. Movano identifizierte diese Aktivitäten, bevor Rundungsaktien ausgegeben wurden, und geht davon aus, dass sich die Anzahl der ausstehenden Aktien nach dem Split auf etwa 6,6 Millionen beläuft. Das Unternehmen arbeitet mit den Wertpapieraufsichtsbehörden und rechtlichen Beratern zusammen, um dieses Problem zu lösen, und stellt fest, dass auch andere kleinvolumige Aktien nach ihren Umkehrsplits ähnlichen Manipulationsversuchen ausgesetzt waren.
- Company proactively identified and prevented potential stock manipulation before round-up shares were issued
- Detection of apparent stock manipulation attempt following reverse stock split announcement
- Company faces potential security and trading integrity concerns
Insights
The investigation into potential stock manipulation following Movano Health's reverse stock split represents a significant regulatory concern. The suspected scheme of executing numerous single-share transactions to exploit the fractional share rounding mechanism is a sophisticated form of market manipulation that could have diluted existing shareholder value. The company's proactive detection before any round-up shares were issued prevented potential share dilution and demonstrates strong corporate governance.
The broader implication of similar manipulation attempts affecting other small-cap companies suggests a concerning pattern that may prompt increased regulatory scrutiny and potential policy changes regarding reverse split procedures. The company's engagement with securities regulators and collaboration with other affected companies could lead to enhanced protective measures for small-cap stocks undergoing corporate actions.
The attempted manipulation highlights vulnerabilities in small-cap stocks during corporate restructuring events. With a market cap of just
Small-cap investors should note that while the company prevented immediate damage, the investigation and potential regulatory involvement could create near-term volatility. The collaboration between affected companies may lead to market structure improvements but also signals heightened risks in small-cap reverse split scenarios.
Company Continues to Work with Securities Regulators, Legal Advisors and Other Partners to Protect Interests of Shareholders
Based on its preliminary investigation, the Company believes that between the announcement of the reverse split on October 25, 2024, and its effective date on October 29, 2024, a large number of single share transactions were executed in an apparent attempt to take advantage of the convention of rounding up reverse split fractional shares at the beneficial owner level. The Company was able to uncover this activity before any round up shares were issued and continues to expect the number of common shares outstanding to be approximately 6.6 million following the reverse 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. 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."
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
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 stock manipulation issue is Movano Health (MOVE) investigating in November 2024?
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