23andMe has filed for Chapter 11 chapter safety and its co-founder and CEO has resigned because the struggling genetic testing company continues its push to chop prices.
The corporate mentioned Sunday that it’s going to look to promote “considerably all of its belongings” via a court-approved reorganization plan.
The San Francisco-based firm additionally mentioned Anne Wojcicki had resigned as CEO efficient instantly however would stay on the corporate’s board. Her resignation comes a pair weeks after a board committee had rejected a nonbinding acquisition proposal from Wojcicki.
Shares of 23andMe Holding Co., which have shed almost all their worth since final spring, plunged under $1 in premarket buying and selling Monday.
The voluntary chapter submitting caps months of turmoil for the corporate, which has struggled to discover a worthwhile enterprise mannequin since going public in 2021.
Final September, all of its independent directors resigned in a uncommon transfer following negotiations with Wojcicki, who had been making an attempt to take the corporate personal.
The corporate then introduced in November that it will lay off 40% of its workforce, or greater than 200 workers, and discontinue its therapeutics division.
In January, the board’s particular committee mentioned it was exploring strategic alternate options, together with a doable sale.
Board Chair Mark Jensen mentioned in a press release Sunday that the corporate has decided {that a} court-supervised sale was “the very best path ahead to maximise the worth of the enterprise.” He mentioned additionally they anticipate it to assist the corporate’s efforts to chop prices and likewise resolve authorized and leasehold liabilities.
Jensen additionally mentioned, “We’re dedicated to persevering with to safeguard buyer knowledge and being clear in regards to the administration of consumer knowledge going ahead, and knowledge privateness might be an essential consideration in any potential transaction.”
23andMe plans to proceed working its enterprise and has $35 million in debtor-in-possession financing from JMB Capital Companions.
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