Signage at 23andMe headquarters in Sunnyvale, California, USA, on Wednesday, January 27, 2021.
David Paul Morris | Bloomberg | Getty Images
Anne Wojcicki, the CEO of 23andMeis considering a proposal to delist the genetic testing company after its share price plunged more than 95% from its 2021 highs.
A filing late Wednesday with the Securities and Exchange Commission said Wojcicki is working with advisers and plans to talk to potential funding sources and partners. It “wishes to maintain control of the company” and is “unwilling to support an alternative transaction,” the filing said.
The former billionaire co-founded 23andMe in 2006, and the company skyrocketed in popularity thanks to its at-home DNA testing kits that give customers insight into their family history and genetic profile. 23andMe went public in 2021 through a merger with a special purpose acquisition company that valued the company at around $3.5 billion.
But 23andMe struggled to generate consistent recurring revenue because customers only had to take the DNA test once to receive their results. The stock closed Thursday at around 51 cents per share.
In November, 23andMe received a letter from the Nasdaq Listing Qualifications Department saying the company had 180 days to get its share price back above $1. The company's board formed a “special committee” in late March to help examine options that could boost the stock.
A press release Thursday said the committee had been informed of Wojcicki's interest in acquiring all of 23andMe's outstanding shares. Wojcicki owns shares representing more than 20% of the shares outstanding, which represents about 49% of the voting rights, the release said.
“The Special Committee will carefully consider Ms. Wojcicki's proposal when it is made available and evaluate it in light of other available strategic alternatives, including continuing to operate as a publicly traded company,” the committee said in the release. “The Special Committee is committed to acting in the best interests of 23andMe and its shareholders.”
The committee hired Wells Fargo as its financial adviser and said there was “no guarantee” that Wojcicki's offer would produce the proposed outcome.
23andMe declined to comment beyond publication.
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