23Andme examines strategic alternatives and would like to create capital

Anne Wojcicki, co -founder and Chief Executive Officer from 23Andme Inc., during the South by Southwest (SXSW) Festival in Austin, Texas, USA, on Friday, March 10, 2023.

Jordan Vonderhaar | Bloomberg | Getty pictures

Competed genetic firm 23andme On Tuesday it said that it explored strategic alternatives a second time, including a sale of the company or its assets, a restructuring or a company combination.

The share, which lost 82% of its value last year, fell 10% in extended trade and was stopped briefly.

The announcement came together with the publication of the results of 23andmes third quarter. Sales in the company's consumer service business decreased from $ 42.9 million in the previous year by 8% to $ 39.6 million.

The company said that it would “need additional liquidity” to finance its business and it wants to get capital.

“Management has found that there is considerable doubts about the company's ability to continue as a matter of concern,” said 23andme on Tuesday in the profit publication.

CEO Anne Wojcicki tried to keep the company afloat. 23Andme is now worth less than 100 million US dollars, which is a top value of $ 6 billion.

In March, the independent directors of 23Andme founded a special committee to evaluate the company's potential paths forward. Wojcicki presented a proposal in July to take over the company privately, but it was rejected because it had no fixed financing and at that time did not offer a premium for the course of the final share, the committee said.

The independent directors resigned from the 23Andme board every two months later, citing disagreements with Wojcicki about the “strategic orientation of the company”. Wojcicki has now appointed three new independent directors to his board, and 23Andme also said that it should reduce 40% of its workforce as part of a restructuring plan and interpret the therapeutic business.

On Tuesday, 23andme said that the special committee would again monitor the search for strategic alternatives. The committee selected Moelis & Company as a financial advisor and Goodwin Procter as a legal advisor.

There is no guarantee that a deal will take place, the committee said. Wojcicki has repeatedly expressed her wish to take the company privately, but it is not clear whether she will submit another proposal.

23Andme refused to comment.

REGARD: The increase and fall of 23andme