(Bloomberg) -- A special committee of 23andMe’s board said it’s not “prepared to move forward” with Chief Executive Officer Anne Wojcicki’s offer to take the struggling DNA-testing company private.
On Monday, Wojcicki proposed buying the outstanding shares of 23andMe for 40 cents each, according to a filing this week. In a letter to Wojcicki, an independent committee formed to explore deals, said that it was “disappointed” with the proposal because it wasn’t at a premium to Wednesday’s close, which was 40 cents a share, and lacked financing commitments.
Wojcicki, who’s chair of the board, indicated in April that she planned to maintain control of the company and would “not be willing to support any alternative transaction.”
The special committee is asking her to withdraw her opposition to outside buyers and said in a letter made public Friday that it’s moving forward with a “revised business plan” or other alternatives, regardless of whether Wojcicki offers a higher offer price.
“Given both the lack of certainty regarding a path forward with you and your potential investors and the current liquidity position of the company,” the board wrote that even while she’s considering making a better offer, “we intend to immediately begin the process of engaging a consultant to advise the special committee on a revised business plan that would provide the company with a path to a more sustainable financial profile and achieving profitability.”
When the company agreed to go public in 2021, it was valued at $3.5 billion. Since then, sales of DNA testing kits have slowed and the company has pivoted to offering subscription products in hopes of creating repeat customers for its consumer business. So far that business hasn’t generated the numbers of sign-ups the company had initially anticipated. The stock has traded below $1 a share since late last year, and it has until November to raise share prices to stay compliant and remain listed.
The stock is down nearly 60% this year.
23andMe declined to comment beyond the release. Independent representatives for Wojcicki didn’t immediately respond to a request for comment.
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