Anne Wojcicki, co-founder and chief government officer of 23andme Inc., in the course of 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 stated on Tuesday that it is began exploring strategic options for a second time, which may embrace a sale of the corporate or its belongings, 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 outcomes. Income within the firm’s client providers enterprise dropped 8% to $39.6 million from $42.9 million in the identical interval final yr.
The corporate stated it would “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 means to proceed as a going concern,” 23andMe stated within the earnings launch on Tuesday.
CEO Anne Wojcicki has been making an attempt to maintain the corporate afloat. 23andMe is now price lower than $100 million, down from a peak of $6 billion.
In March, 23andMe’s unbiased administrators shaped a particular committee to guage the corporate’s potential paths ahead. Wojcicki submitted a proposal to take the corporate non-public in July, nevertheless it was rejected as a result of it lacked dedicated financing and provided no premium to the closing share worth on the time, the committee stated.
The unbiased administrators all resigned from 23andMe’s board two months later, citing disagreements with Wojcicki in regards to the “strategic course for the corporate.” Wojcicki has since appointed three new unbiased administrators to its board, and 23andMe additionally stated it deliberate to chop 40% of its workforce and shutter its therapeutics enterprise as a part of a restructuring plan.
On Tuesday, 23andMe stated the particular committee will oversee the seek for strategic options once more, in response to a launch. The committee has chosen Moelis & Firm as its monetary advisor and Goodwin Procter as its authorized advisor.
There isn’t any assure {that a} deal will happen, the committee stated. Wojcicki has repeatedly expressed her want to take the corporate non-public, 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
