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 stated Sunday that it’ll look to promote “considerably all of its belongings” by a court-approved reorganization plan.
The San Francisco-based firm additionally stated 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 practically 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 attempting to take the corporate non-public.
The corporate then introduced in November that it will lay off 40% of its workforce, or greater than 200 staff, and discontinue its therapeutics division.
In January, the board’s particular committee stated it was exploring strategic alternate options, together with a potential sale.
Board Chair Mark Jensen stated in an announcement 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 stated in addition they count on it to assist the corporate’s efforts to chop prices and likewise resolve authorized and leasehold liabilities.
Jensen additionally stated, “We’re dedicated to persevering with to safeguard buyer information and being clear in regards to the administration of consumer information going ahead, and information privateness will likely be an vital 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.
