Key Takeaways
- Shares of 23andMe sank Monday after the DNA tester announced a bankruptcy filing to sell its assets.
- CEO Anne Wojcicki is also resigning, and said in a statement she will be involved as a bidder after failed attempts to take the company private.
- Shares dropped more than 40% in premarket trading.
Shares of DNA testing giant 23andMe (ME) are set to open around $1 Monday morning after the company filed for Chapter 11 bankruptcy, and announced the resignation of its CEO on Sunday.
23andMe said it plans to launch a court-supervised sale or auction of its assets, as board member Mark Jensen called it the “best path forward to maximize the value of the business.”
Along with the bankruptcy sale, 23andMe CEO Anne Wojcicki also announced her resignation effective immediately. CFO Joe Selsavage was named to the interim CEO role, while Wojcicki will remain a member of the company’s board.
Wojcicki announced plans to work to take the DNA testing company private last year, but saw the company’s board resign in September over differences in vision. The company’s new board rejected an offer from a group led by Wojcicki to acquire all of 23andMe’s outstanding shares earlier this month.
In a statement on social media, Wojcicki said she would “equally take accountability for the challenges we have today,” and said she plans to be involved as a bidder in the bankruptcy auction process.
Shares of the DNA tester were down more than 40% premarket Monday. The company’s market capitalization has fallen below $50 million, a fraction of the $6 billion value it peaked at in the months following its initial public offering.