Anne Wojcicki, CEO of 23andMehas filed to take the genetic testing company private as its share price stays below $1.
Wojcicki said she was willing to buy all of 23andMe’s outstanding common stock in money for 40 cents per share, in response to a Wednesday registration on the US Securities and Exchange Commission (SEC). In April, it expressed interest in acquiring the corporate, but said on the time that it 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 finish the transaction “as quickly as possible,” the filing said.
23andMe shares closed at 40 cents on Wednesday.
The former billionaire co-founded the corporate in 2006 and his at-home DNA testing kits, designed to provide customers insight into their family history and genetic profile, made it immediately mainstream. 23andMe went public in 2021 through a merger with a special purpose acquisition company that valued the corporate at around $3.5 billion.
However, the corporate has struggled to generate regular, recurring revenue because customers only need to make use of the DNA product once to get their results. The company's shares have fallen greater 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 within the proposal.
In November, the corporate received a Defect letter from the Nasdaq Listing Qualifications Department, which said the corporate 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 review options that would boost the stock price.
The special committee must approve or reject Wojcicki's proposal to denationalise the corporate, in response to Wednesday's documents.
23andMe declined to comment.
image credit : www.cnbc.com