Anne Wojcicki, co-founder and chief executive officer of 23andme Inc., during the South by Southwest (SXSW) festival in Austin, Texas, US, on Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty Images
Embattled genetic testing company 23andMe said on Tuesday that it’s started exploring strategic alternatives for a second time, which could include a sale of the company or its assets, a restructuring or a business combination.
The stock, which lost 82% of its value last year, fell 10% in extended trading and was briefly halted.
The announcement coincided with the release of 23andMe’s third-quarter results. Revenue in the company’s consumer services business dropped 8% to $39.6 million from $42.9 million in the same period last year.
The company said it will “need additional liquidity” to fund its operations, and it is looking to raise capital.
“Management has determined that there is substantial doubt about the Company’s ability to continue as a going concern,” 23andMe said in the earnings release on Tuesday.
CEO Anne Wojcicki has been trying to keep the company afloat. 23andMe is now worth less than $100 million, down from a peak of $6 billion.
In March, 23andMe’s independent directors formed a special committee to evaluate the company’s potential paths forward. Wojcicki submitted a proposal to take the company private in July, but it was rejected because it lacked committed financing and offered no premium to the closing share price at the time, the committee said.
The independent directors all resigned from 23andMe’s board two months later, citing disagreements with Wojcicki about the “strategic direction for the company.” Wojcicki has since appointed three new independent directors to its board, and 23andMe also said it planned to cut 40% of its workforce and shutter its therapeutics business as part of a restructuring plan.
On Tuesday, 23andMe said the special committee will oversee the search for strategic alternatives again, according to a release. The committee has selected Moelis & Company as its financial advisor and Goodwin Procter as its legal advisor.
There’s no guarantee that a deal will take place, the committee said. Wojcicki has repeatedly expressed her desire to take the company private, but it’s not clear if she will submit another proposal to do so.
23andMe didn’t immediately respond to CNBC’s request for comment.
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