Anne Wojcicki, CEO of 23andMe, has proposed taking the genetic testing company private as its stock price remains below $1. The move comes in response to the company’s ongoing financial struggles and significant drop in stock value.
Proposal Details
- Offer Price: Wojcicki has proposed buying out all outstanding shares of 23andMe at 40 cents per share.
- Premium: This offer represents an 11% premium over the stock’s closing price from April.
- Intent: Wojcicki aims to complete the transaction as soon as possible.
Current Stock Situation
- Stock Price: Shares of 23andMe closed at 40 cents on Wednesday.
- Stock Decline: The stock has fallen over 95% since the company went public in 2021 through a merger with a special purpose acquisition company (SPAC).
Background
- Company Origin: 23andMe was co-founded by Wojcicki in 2006 and became well-known for its at-home DNA testing kits.
- Public Listing: The company went public in 2021, initially valued at around $3.5 billion.
Reasons for the Proposal
- Revenue Challenges: 23andMe has struggled with generating consistent revenue, as its DNA testing service is typically a one-time purchase.
- Public Market Issues: Wojcicki believes that going private will help the company focus better on its mission by reducing public company costs and distractions.
Regulatory and Corporate Response
- Nasdaq Deficiency Letter: In November, 23andMe received a letter from Nasdaq stating it had 180 days to raise its share price above $1.
- Special Committee: The company’s board formed a Special Committee in March to explore options for improving the stock’s performance.
The Special Committee will review Wojcicki’s proposal to take the company private. 23andMe has not yet commented on the proposal.
