A sign is posted in front of 23andMe's headquarters in Sunnyvale, California, on February 1, 2024.
Justin Sullivan | Getty Images
Anne Wojcicki, CEO 23andMeThe genetic testing company has submitted a proposal to take the company private as its stock price continues to hover below $1.
Vojsky said she was willing to buy all of 23andMe’s outstanding common stock for cash for 40 cents per share, according to a filing Wednesday with the U.S. Securities and Exchange Commission. Vojsky expressed interest in buying the company in April, saying at the time that she “would not be prepared to support any alternative transaction.”
The proposed price of 40 cents per share reflects an 11% premium to 23andMe’s closing stock price as of April. The filing said Wojcicki’s intention is to close the deal “as quickly as possible.”
23andMe shares closed at 40 cents on Wednesday.
The former billionaire co-founded the company in 2006, and its at-home DNA testing kits, which aim to give customers insights into their family history and genetic profiles, catapulted the company into the mainstream. 23andMe went public in 2021 through a merger with a special purpose acquisition company, which valued the company at about $3.5 billion.
But the company has struggled to generate consistent recurring revenue, as customers only need to use its DNA product once to receive their results, and its shares have fallen more than 95% since its debut.
“Our experience with the short-term focus of public markets leads me to believe that the company would be better equipped to execute this mission as a private entity, allowing us to eliminate some of the costs and distractions of public companies,” Wojciechowski wrote in the proposal.
In November, the company received a letter of deficiency from the Nasdaq listing qualifications department, which said the company had 180 days to return its stock price to above $1. The company’s board of directors formed a “special committee” in late March to help explore options that could boost the stock.
The special committee will need to approve or reject Wojciechowski's proposal to take the company private, according to the filing Wednesday.
23andMe declined to comment.
