Anne Wojcicki, the CEO of 23andMeis considering a proposal to delist the genetic testing company after its share price plunged greater than 95% from its 2021 highs.
A filing late Wednesday Speaking to the Securities and Exchange Commission, Wojcicki said he’s working with advisers and plans to seek advice from potential funding sources and partners. It “wishes to maintain control of the company” and is “unwilling to support an alternative transaction,” the filing said.
The former billionaire co-founded 23andMe in 2006, and the corporate skyrocketed in popularity due to its at-home DNA testing kits that give customers insight into their family history and genetic profile. 23andMe went public in 2021 through a merger with a special purpose acquisition company that valued the corporate at around $3.5 billion.
But 23andMe struggled to generate consistent recurring revenue because customers only needed to take the DNA test once to receive their results. The stock closed Thursday at around 51 cents per share.
In November, 23andMe received one Notice of defects from the Nasdaq Listing Qualifications Department, which said the corporate has 180 days to get its share price back above $1. The company's board formed a “special committee” in late March to assist examine options that might boost the stock.
A Press release said Thursday that the committee had been made aware of Wojcicki's interest in acquiring all of 23andMe's outstanding shares. Wojcicki owns shares representing greater than 20% of the shares outstanding, which represents about 49% of the voting rights, the discharge said.
“The Special Committee will carefully consider Ms. Wojcicki's proposal when it is made available and evaluate it in light of other available strategic alternatives, including continuing to operate as a publicly traded company,” the committee said in the discharge. “The Special Committee is committed to acting in the best interests of 23andMe and its shareholders.”
The committee hired Wells Fargo as its financial adviser and said there was “no guarantee” that Wojcicki's offer would produce the proposed consequence.
23andMe declined to comment beyond publication.
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