A sign stands in front of 23andMe's headquarters in Sunnyvale, California on February 1, 2024.
Justin Sullivan |
Anne Wojcicki, CEO of 23andMehas filed to take the genetic testing company private as its share price remains below $1.
Wojcicki said she was willing to acquire all of 23andMe's outstanding common stock in cash for 40 cents per share, according to a document filed with the U.S. Securities and Exchange Commission on Wednesday. She had previously expressed interest in acquiring the company in April, but said at the time she was “not prepared to support an alternative transaction.”
The proposed price of 40 cents per share represents an 11% premium to 23andMe's closing price in April. Wojcicki's intention is to complete the transaction “as quickly as possible,” the filing said.
23andMe shares closed at 40 cents on Wednesday.
The former billionaire co-founded the company in 2006 and his at-home DNA testing kits, designed to give customers insight into their family history and genetic profile, made it instantly mainstream. 23andMe went public in 2021 through a merger with a special purpose acquisition company that valued the company at around $3.5 billion.
However, the company has struggled to generate steady, recurring revenue because customers only need to use the DNA product once to get their results. The company's shares have fallen more than 95% since its debut.
“Our experience with the short-term focus of the public markets has led me to believe that the Company is best equipped to execute this mission as a private company, allowing us to avoid certain costs and distractions associated with being a publicly traded company,” Wojcicki wrote in the proposal.
In November, the company received a letter from the Nasdaq Listing Qualifications Department stating that the company had 180 days to get its stock price back above $1. The company's board of directors formed a “special committee” in late March to explore options that could boost the stock price.
The special committee must approve or reject Wojcicki's proposal to privatize the company, according to Wednesday's documents.
23andMe declined to comment.
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