Anne Wojcicki, CEO of 23andMe, has submitted a proposal to take the genetic testing company private, as its stock price remains below $1. In a filing with the U.S. Securities and Exchange Commission on Wednesday, Wojcicki offered to buy all outstanding shares of 23andMe’s common stock for 40 cents per share in cash. This proposed price represents an 11% premium to the company’s closing stock price in April.
Wojcicki, who co-founded 23andMe in 2006, initially expressed interest in acquiring the company in April, stating that she would not support any alternative transaction. She aims to complete the transaction “as promptly as possible,” according to the filing. On Wednesday, shares of 23andMe closed at 40 cents.
23andMe, known for its at-home DNA testing kits that provide customers with insights into their ancestry and genetic profiles, went public in 2021 through a merger with a special purpose acquisition company (SPAC), valuing it at approximately $3.5 billion. However, the company has struggled to maintain steady revenue, as customers only need to use its DNA testing product once. Since its public debut, the stock has declined by over 95%.
Wojcicki believes that taking 23andMe private will better equip the company to focus on its long-term mission without the short-term pressures of the public markets. In November, the company received a deficiency letter from the Nasdaq Listing Qualifications Department, giving it 180 days to bring its share price back above $1. In response, 23andMe’s board formed a “Special Committee” in late March to explore options to improve the stock price.
The Special Committee will need to approve or reject Wojcicki’s proposal to take the company private.