An indication is posted in entrance of the 23andMe headquarters on February 01, 2024 in Sunnyvale, California.
Justin Sullivan | Getty Pictures
Anne Wojcicki, CEO of 23andMe, has submitted a proposal to take the genetic testing firm non-public as its inventory worth continues to hover under $1.
Wojcicki stated she was ready to accumulate all of 23andMe’s excellent shares of frequent inventory in money for 40 cents per share, based on a Wednesday submitting with the U.S. Securities and Trade Fee. She expressed curiosity in buying the corporate in April, stating on the time that she “not be prepared to assist any different transaction.”
The proposed worth of 40 cents per share displays an 11% premium to 23andMe’s closing inventory worth from April. Wojcicki’s intention is to finish the transaction “as promptly as doable,” the submitting stated.
Shares of 23andMe closed at 40 cents on Wednesday.
The former billionaire co-founded the corporate in 2006, and its at-home DNA testing kits, which intention to present prospects insights into their household histories and genetic profiles, despatched it rocketing into the mainstream. 23andMe went public in 2021 through a merger with a particular goal acquisition firm, which valued the corporate at round $3.5 billion.
However the firm has struggled to generate regular recurring income, since prospects want solely use its DNA product as soon as to obtain their outcomes. The corporate’s inventory has tumbled greater than 95% since its debut.
“Our expertise with the short-term focus of the general public markets has led me to imagine that the Firm shall be finest geared up to execute in opposition to this mission as a personal entity, permitting us to take away sure public firm prices and distractions,” Wojcicki wrote within the proposal.
In November, the corporate obtained a deficiency letter from the Nasdaq Itemizing {Qualifications} Division, which stated the corporate had 180 days to carry its share worth again above $1. The corporate’s board of administrators shaped a “Particular Committee” in late March to assist discover choices that might juice the inventory.
The Particular Committee might want to approve or reject Wojcicki’s proposal to take the corporate non-public, based on the submitting Wednesday.
23andMe didn’t instantly reply to CNBC’s request for remark.
