Anne Wojcicki, co-founder and chief govt officer of 23andme Inc., throughout the South by Southwest (SXSW) competition in Austin, Texas, US, on Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty Pictures
Embattled genetic testing firm 23andMe mentioned on Tuesday that it is began exploring strategic alternatives for a second time, which might embrace a sale of the corporate or its property, a restructuring or a enterprise mixture.
The inventory, which misplaced 82% of its worth final yr, fell 10% in prolonged buying and selling and was briefly halted.
The announcement coincided with the discharge of 23andMe’s third-quarter results. Income within the firm’s client companies enterprise dropped 8% to $39.6 million from $42.9 million in the identical interval final yr.
The corporate mentioned it’s going to “want further liquidity” to fund its operations, and it’s seeking to increase capital.
“Administration has decided that there’s substantial doubt in regards to the Firm’s skill to proceed as a going concern,” 23andMe mentioned within the earnings launch on Tuesday.
CEO Anne Wojcicki has been trying to maintain the corporate afloat. 23andMe is now value lower than $100 million, down from a peak of $6 billion.
In March, 23andMe’s impartial administrators shaped a particular committee to guage the corporate’s potential paths ahead. Wojcicki submitted a proposal to take the company private in July, nevertheless it was rejected as a result of it lacked dedicated financing and provided no premium to the closing share value on the time, the committee said.
The impartial administrators all resigned from 23andMe’s board two months later, citing disagreements with Wojcicki in regards to the “strategic route for the corporate.” Wojcicki has since appointed three new independent directors to its board, and 23andMe additionally mentioned it deliberate to chop 40% of its workforce and shutter its therapeutics enterprise as a part of a restructuring plan.
On Tuesday, 23andMe mentioned the particular committee will oversee the seek for strategic alternate options once more, in keeping with a release. The committee has chosen Moelis & Firm as its monetary advisor and Goodwin Procter as its authorized advisor.
There is not any assure {that a} deal will happen, the committee mentioned. Wojcicki has repeatedly expressed her want to take the corporate personal, nevertheless it’s not clear if she’s going to submit one other proposal to take action.
23andMe did not instantly reply to CNBC’s request for remark.
WATCH: The rise and fall of 23andMe
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