23andMe, the well-known DNA testing company, saw a dramatic drop in its shares on Monday, following the announcement of a bankruptcy filing aimed at selling off its assets. Amid these developments, CEO Anne Wojcicki has stepped down, though she intends to stay involved as a bidder after unsuccessful efforts to revert the company to private ownership.
In premarket trading, the company’s shares plummeted over 40%, positioning them to open at about $1. The bankruptcy filing coincided with Wojcicki’s resignation on Sunday, further shaking the company’s standing. To navigate through these turbulent times, 23andMe has opted for a court-managed sale or auction of its holdings, with board member Mark Jensen describing it as the most promising route to enhance the business’s value.
Accompanying this strategic shift, Anne Wojcicki’s resignation was immediate. Joe Selsavage, the CFO, was appointed as interim CEO, while Wojcicki will maintain her seat on the board. Her previous attempts to privatize the company faced hurdles when the entire board resigned in September due to divergent perspectives. More recently, the new board dismissed a proposal from a group spearheaded by Wojcicki to buy all the outstanding 23andMe shares.
In a social media statement, Wojcicki expressed her intention to hold herself accountable for the current challenges and confirmed she would actively participate as a bidder in the bankruptcy auction. The premarket nosedive in 23andMe’s stock reflects a significant fall in the company’s market cap, now below $50 million, a steep decline from its $6 billion peak shortly after going public.
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