Anne Wojcicki, co-founder and chief executive officer of 23andme Inc., in the course of the South by Southwest (SXSW) festival in Austin, Texas, US, on Friday, March 10, 2023.Â
Jordan Vonderhaar | Bloomberg | Getty Images
Embattled genetic testing company 23andMe said on Tuesday that it’s began exploring strategic alternatives for a second time, which could include a sale of the corporate or its assets, a restructuring or a business combination.
The stock, which lost 82% of its value last yr, fell 10% in prolonged trading and was briefly halted.
The announcement coincided with the discharge of 23andMe’s third-quarter results. Revenue in the corporate’s consumer services business dropped 8% to $39.6 million from $42.9 million in the identical period last yr.
The corporate said it should “need additional liquidity” to fund its operations, and it’s seeking to raise capital.
“Management has determined that there’s substantial doubt concerning the Company’s ability to proceed as a going concern,” 23andMe said within the earnings release on Tuesday.
CEO Anne Wojcicki has been attempting to keep the corporate afloat. 23andMe is now value lower than $100 million, down from a peak of $6 billion.
In March, 23andMe’s independent directors formed a special committee to judge the corporate’s potential paths forward. Wojcicki submitted a proposal to take the corporate private in July, but it surely was rejected since it lacked committed financing and offered no premium to the closing share price on the time, the committee said.
The independent directors all resigned from 23andMe’s board two months later, citing disagreements with Wojcicki concerning the “strategic direction for the corporate.” Wojcicki has since appointed three latest independent directors to its board, and 23andMe also said it planned to chop 40% of its workforce and shutter its therapeutics business as a part of a restructuring plan.Â
On Tuesday, 23andMe said the special committee will oversee the seek for strategic alternatives again, in keeping with a release. The committee has chosen Moelis & Company as its financial advisor and Goodwin Procter as its legal advisor.
There is not any guarantee that a deal will happen, the committee said. Wojcicki has repeatedly expressed her desire to take the corporate private, but it surely’s not clear if she is going to submit one other proposal to achieve this.
23andMe declined to comment.
WATCH: The rise and fall of 23andMe
