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Anne Wojcicki, CEO of 23andMe, has submitted a proposal to take the genetic testing company private amid concerns over its stock price, which has been consistently trading below $1. In a filing with the U.S. Securities and Exchange Commission on Wednesday, Wojcicki offered to acquire all outstanding shares of 23andMe’s common stock for 40 cents per share in cash. This proposed price represents an 11% premium over the company’s stock price from April, when Wojcicki first expressed her intention to acquire the company, stating she would not support any alternative transaction.
Shares of 23andMe closed at 40 cents on Wednesday, reflecting the proposed acquisition price. Wojcicki, who co-founded the company in 2006, has overseen its rise to prominence with its popular at-home DNA testing kits, designed to provide insights into family history and genetic profiles. The company went public in 2021 through a merger with a special purpose acquisition company (SPAC), valuing it at approximately $3.5 billion.
However, 23andMe has faced challenges in maintaining consistent revenue, as the nature of its DNA testing product typically requires only a single purchase from customers. This has contributed to a significant decline in the company’s stock price, which has dropped more than 95% since its public debut.
Wojcicki’s proposal underscores her belief that 23andMe would better fulfill its mission as a private company, free from the short-term pressures of public markets. “Our experience with the short-term focus of the public markets has led me to believe that the company will be best equipped to execute against this mission as a private entity, allowing us to remove certain public company costs and distractions,” she wrote in her proposal.
The move comes after 23andMe received a deficiency letter from the Nasdaq Listing Qualifications Department in November, warning that the company had 180 days to raise its share price above $1 to avoid delisting. In response, the company’s board of directors formed a “Special Committee” in late March to explore strategies to boost the stock price.
The Special Committee will now consider Wojcicki’s proposal to take the company private and will decide whether to approve or reject the offer, as detailed in the Wednesday filing.