The logo at the 23andMe headquarters in Sunnyvale, California, United States, Wednesday, January 27, 2021.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
23 and me Chief Executive Anne Wojcicki is considering a proposal to take the genetic testing company private after its shares fell more than 95% from their 2021 highs.
Wojcicki is reportedly working with advisors and plans to begin conversations with possible financing sources and partners a filing meeting with the U.S. Securities and Exchange Commission Wednesday night. She “wants to maintain control of the company” and is “unwilling to support any alternative transaction,” the filing said.
The former billionaire co-founded 23andMe in 2006, and the company quickly became mainstream for its at-home DNA testing kits that gave customers insights into their family history and genetic profiles. 23andMe will go public in 2021 through a merger with a special purpose acquisition company, valuing the company at approximately $3.5 billion.
But despite launching two new businesses, 23andMe has struggled to generate steady recurring revenue because consumers only need to take a DNA test to get results. The stock was trading at about 45 cents a share Thursday morning.
In November, 23andMe acquired Not trustworthy Nasdaq’s listing qualification department gave it 180 days to get its stock price back above $1. The company’s board formed a “special committee” in late March to help explore options that could boost the stock.
The committee reportedly said it had learned of Wojcicki’s interest in acquiring all of the outstanding shares of 23andMe freed Thursday. Her current stake represents more than 20% of outstanding shares, equivalent to about 49% of voting rights, the release said.
“The Special Committee will carefully review Ms. Wojcicki’s proposal and evaluate it against other available strategic alternatives, including continuing to operate as a public company,” the committee said in a press release. “The Special Committee is committed to continuing to operate as a public company with 23andMe and its Act in the best interests of shareholders.”
The committee has hired Wells Fargo as its financial adviser and said there is “no guarantee” that Wojcicki’s proposal will lead to the proposed results.
23andMe declined to comment after publication.
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