Anne Wojcicki, CEO of 23andMe, has submitted a proposal to take the genetic testing company private as its stock price continues to hover below $1.
Wojcicki said she was prepared to acquire all of 23andMe’s outstanding shares of common stock in cash for 40 cents per share, according to a Wednesday filing with the U.S. Securities and Exchange Commission. She expressed interest in acquiring the company in April, stating at the time that she will “not be willing to support any alternative transaction.”
The proposed price of 40 cents per share reflects an 11% premium to 23andMe’s closing stock price from April. Wojcicki’s intention is to complete the transaction “as promptly as possible,” the filing said.
Shares of 23andMe closed at 40 cents on Wednesday.
The former billionaire co-founded the company in 2006, and its at-home DNA testing kits, which aim to give customers insights into their family histories and genetic profiles, sent it rocketing into the mainstream. 23andMe went public in 2021 via a merger with a special purpose acquisition company, which valued the company at around $3.5 billion.
But the company has struggled to generate steady recurring revenue, since customers need to only use its DNA product once to receive their results. The company’s stock has tumbled more than 95% since its debut.
“Our experience with the short-term focus of the public markets has led me to believe that the Company will be best equipped to execute against this mission as a private entity, allowing us to remove certain public company costs and distractions,” Wojcicki wrote in the proposal.
In November, the company received a deficiency letter from the Nasdaq Listing Qualifications Department, which said the company had 180 days to bring its share price back above $1. The company’s board of directors formed a “Special Committee” in late March to help explore options that could juice the stock.
The Special Committee will need to approve or reject Wojcicki’s proposal to take the company private, according to the filing Wednesday.
23andMe declined to comment.