23andMe's CEO, Anne Wojcicki, has announced plans to take the California-based consumer genetics and research company private. This move comes less than three years following its initial public offering (IPO), according to a Securities and Exchange Commission (SEC) filing. On April 13, Wojcicki informed a board committee that she had begun working with advisors and exploring potential partners and sources of funding.
Wojcicki, who co-founded the company in 2006, controls 49.99% of the company's voting rights, effectively ruling out a third-party acquisition. In her Schedule 13D filing, Wojcicki stated her intention to retain control of 23andMe and announced she would not endorse any alternate transaction.
23andMe's share price, which suffered a significant decrease after a major data breach last year, saw a close to 40% increase after the privatization news broke. The difficulties experienced by the company reflect a wider disinterest in DNA tests among consumers. Despite attempts to establish a sustained revenue flow via a subscription model, 23andMe has yet to see significant success.
The firm was warned by Nasdaq in November that it risked delisting if its stock price did not exceed $1 within the following 180 days.