Investor group J.B.D Innovation Ltd. and Victor Tshuva & Co. — Law Offices has disclosed a 24.82% stake in Wearable Devices Ltd, signaling an immediate push for governance changes at the company. The group purchased 543,361 ordinary shares at an average price of $1.751 per share on July 23, representing a total investment of $951,425. In a demand letter issued on Monday, the investors called for a special shareholder meeting to be held no later than Sept. 22, aiming to amend the company's articles of association, remove four sitting directors, and elect their own nominees.

The demand targets the removal of directors Guy Wagner, Eli Bachar, Ilana Lurie, and Kobbi Nir from the Board of Directors of Wearable Devices. The investor group cited serial dilutive financings, repeated reverse splits, and board entrenchment as primary reasons for seeking control. They have explicitly demanded that the company refrain from further dilution or implementing anti-takeover measures ahead of the upcoming vote.

Financial Position and Stake Details

The disclosure highlights the financial context surrounding the investment. Wearable Devices held roughly $18.4 million in cash as of Dec. 31, 2025. Additionally, the company secured $5.0 million in gross proceeds from an April warrant inducement. The investor group’s acquisition represents a significant minority position, granting them substantial leverage in the proposed governance overhaul.

Governance Demands

The core of the dispute centers on corporate governance and capital structure management. J.B.D Innovation and Victor Tshuva & Co. argue that previous actions by the board, including dilutive financing rounds and reverse stock splits, have harmed shareholder value and entrenched incumbent leadership. By demanding a special meeting before Sept. 22, the group seeks to expedite the replacement of the majority of the board, replacing the four named directors with four of its own nominees.

What the Numbers Show

The investor group’s ability to acquire a nearly 25% stake for under $1 million suggests significant liquidity or valuation pressure on Wearable Devices shares. With $18.4 million in cash and recent $5.0 million in warrant proceeds, the company maintains a positive liquidity position. However, the investors’ specific objection to "serial dilutive financings" indicates that despite available cash, the board may have relied heavily on equity-based funding mechanisms that eroded existing shareholder value. The push to halt further dilution ahead of the vote underscores a strategic attempt to preserve equity value while restructuring leadership.

Wearable Devices Ltd. announced the release of a white paper positioning its Mudra neural interface as the foundational 'intent layer' for agentic AI, augmented reality (AR), and robotics. The document, titled 'From Intention to Action: How Brain–Computer Interfaces Are Removing Friction from AI & AR Interaction', argues that wrist-worn neural sensing can close the 'intent gap' between human intent and AI agent understanding. This development aims to enable more natural interaction with AI agents and AR systems across consumer, enterprise, and industrial markets.

The white paper introduces the Company’s proprietary Large MUAP Model (LMM), a data-compounding 'neural-token' representation designed as a differentiated data asset. It outlines near-term, high-value applications, including password-less identity verification, payment authentication, and the training of robotic hands on real human muscle force and intent. The paper establishes a multi-sensor framework for intent-aware agentic solutions, describing how the LMM translates wrist-based nerve and muscle signals into machine-readable patterns to reduce per-user setup and improve prediction accuracy.

Key Themes and Commercial Use Cases

The paper defines intention within a practical framework connecting intention, agency, and human–agent collaboration. It highlights 'Passive Identity', a neuromuscular-signature-based approach to continuous authentication and transaction authorization. Additionally, it explores how wrist-worn sensing may address a major robotics bottleneck by allowing robotic hands to be trained on actual human muscle force and anticipatory tension rather than just visual paths.

Mudra Platform Configurations

The white paper details two commercial configurations of the Mudra platform designed to serve as the physical layer for this intentional interface:

Physiological Context and AR Feedback

Beyond action, the paper explores how movement, muscle tone, and heart-related signals may reveal attention, engagement, and internal state. This physiological context helps systems understand not only what a user is trying to do but how the user is responding. The document presents AR as a feedback channel where visual, spatial, and haptic cues allow users and AI to adjust to each other continuously.

Guy Wagner, Founder and Chief Scientific Officer at Wearable Devices, stated that the interface remains the bottleneck as AI and AR become more capable. He emphasized that combining wrist-worn neural sensing with physiological context and real-time AR feedback may help systems understand users faster and act with less friction. Wagner noted that leveraging proprietary neural tokens could unlock zero-friction applications across security, robotics, and digital health.