Anne Wojcicki, co -founder and executive director of 23Andme Inc., during the South By Southwest (SXSW) festival in Austin, Texas, USA, on Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty images
Genetic Test Company 23 and Said on Tuesday that began to explore strategic alternatives for the second time, which could include a sale of the company or its assets, a restructuring or a business combination.
The action, which lost 82% of its value last year, fell 10% in the extended trade and stopped briefly.
The announcement coincided with the launch of the results of the third quarter of 23Andme. Revenue in the company's consumer services business fell 8% to $ 39.6 million of $ 42.9 million in the same period last year.
The company said “will need additional liquidity” to finance its operations, and is looking to raise capital.
“Management has determined that there is a substantial doubt about the company's ability to continue as a company in progress,” said 23 in the release of profits on Tuesday.
The CEO Anne Wojcicki has been trying to keep the company afloat. 23 And me now is worth less than $ 100 million, below a peak of $ 6 billion.
In March, the independent directors of 23Andme formed a special committee to evaluate the possible roads of the company. Wojcicki presented a proposal to take the company in private in July, but was rejected because it lacked compromised financing and did not offer any premium at the final price of the shares at that time, the committee said.
All independent directors renounced the Board of 23 Andme two months later, citing disagreements with Wojcicki on the “strategic direction for the company.” Since then, Wojcicki has appointed three new independent directors for its Board, and 23Andme also said it planned to reduce 40% of its workforce and close its therapeutic business as part of a restructuring plan.
On Tuesday, 23Andme said the Special Committee will supervise the search for strategic alternatives again, according to a statement. The Committee has selected Moelis & Company as its financial advisor and Goodwin Procter as its legal advisor.
There is no guarantee that an agreement will be carried out, said the committee. Wojcicki has repeatedly expressed his desire to take the company in private, but it is not clear if he will present another proposal to do so.
23 And me declined to comment.
LOOK: The promotion and fall of 23Andme
