A sign is posted in front of 23andMe headquarters in Sunnyvale, California, on February 1, 2024.
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Anne Wojcicki, CEO 23 and meAs the genetic testing company’s stock price continues to hover below $1, the company has submitted a proposal to take it private.
Wojcicki reportedly said she was prepared to acquire all of 23andMe’s outstanding common shares in cash for 40 cents per share. Wednesday’s filing and the U.S. Securities and Exchange Commission. She expressed interest in acquiring the company in April, saying at the time that she was “unwilling to support any alternative transaction.”
The proposed price of 40 cents per share represents an 11% premium to 23andMe’s April closing price. Wojcicki’s goal was to close the deal “as quickly as possible,” the filing said.
Shares of 23andMe closed at 40 cents on Wednesday.
The former billionaire co-founded the company in 2006, and its at-home DNA testing kits, designed to give customers insight into their family history and genetic profiles, quickly became mainstream. 23andMe went public in 2021 through a merger with a special purpose acquisition company, valuing the company at approximately $3.5 billion.
But the company has struggled to generate steady recurring revenue because customers only have to use its DNA product once to get results. The company’s share price has fallen more than 95% since its listing.
“Our experience with the short-term focus of public markets leads me to believe that the company will be best equipped to execute this mission as a private entity, allowing us to eliminate some of the costs and disruptions of a public company,” Wojcicki writes in the book. “The proposal.
In November, the company obtained Not trustworthy Nasdaq’s listing qualification department said the company has 180 days to restore the stock price to above $1. The company’s board formed a “special committee” in late March to help explore options that could boost the stock.
The special committee will need to approve or deny Wojcicki’s proposal to take the company private, according to documents filed Wednesday.
23andMe declined to comment.
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