A sign is posted in front of 23andMe headquarters in Sunnyvale, California, on February 1, 2024.
Justin Sullivan | Getty Images
Anne Wojcicki, CEO of 23andMehas submitted a proposal to take the genetic testing company private as its stock price continues to hover below $1.
Wojcicki said she was willing to acquire all of 23andMe's outstanding common stock in cash for 40 cents per share, according to a filing Wednesday with the U.S. Securities and Exchange Commission. She expressed interest in acquiring the company in April and said at the time that she would be “unwilling to support any alternative transaction.”
The proposed price of 40 cents per share reflects an 11% premium to 23andMe's closing stock price in April. Wojcicki intends to complete the transaction “as soon as possible,” according to the filing.
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 histories and genetic profiles, propelled it 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 since customers only need to use its DNA product once to receive results. The company's stock has fallen more than 95% since its debut.
“Our experience with the short-term approach of the public markets has led me to believe that the Company will be better equipped to execute this mission as a private entity, allowing us to eliminate certain costs and distractions of public companies,” Wojcicki wrote in the proposal.
In November, the company received a deficiency letter from Nasdaq's Listing Qualifications Department, which said the company had 180 days to bring its stock price back 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 have to approve or reject Wojcicki's proposal to privatize the company, according to Wednesday's presentation.
23andMe declined to comment.
