23andMe is exploring strategic choices, taking a look to lift capital

Embattled genetic checking out corporate 23andMe stated on Tuesday that it’s began exploring strategic alternatives for a 2d past, which might come with a sale of the corporate or its belongings, a restructuring or a trade mixture.

The reserve, which misplaced 82% of its worth latter past, fell 10% in prolonged buying and selling and used to be in short halted.

The announcement coincided with the leave of 23andMe’s third-quarter results. Income within the corporate’s shopper services and products trade dropped 8% to $39.6 million from $42.9 million in the similar duration latter past.

The corporate stated it is going to “need additional liquidity” to investmrent its operations, and it’s taking a look to lift capital.

“Management has determined that there is substantial doubt about the Company’s ability to continue as a going concern,” 23andMe stated within the income leave on Tuesday.

CEO Anne Wojcicki has been looking to book the corporate afloat. 23andMe is now use lower than $100 million, ailing from a height of $6 billion.

In March, 23andMe’s separate administrators shaped a distinct committee to guage the corporate’s doable paths ahead. Wojcicki submitted an offer to pluck the corporate personal in July, however it used to be rejected as it lacked dedicated financing and introduced refuse top rate to the endmost percentage value on the past, the committee said.

The separate administrators all resigned from 23andMe’s board two months nearest, mentioning disagreements with Wojcicki in regards to the “strategic direction for the company.” Wojcicki has since appointed 3 unutilized separate administrators to its board, and 23andMe additionally stated it deliberate to short 40% of its staff and shutter its therapeutics trade as a part of a restructuring plan. 

On Tuesday, 23andMe stated the particular committee will keep an eye on the seek for strategic choices once more, consistent with a release. The committee has decided on Moelis & Corporate as its monetary consultant and Goodwin Procter as its prison consultant.

There’s refuse promise {that a} do business in will pluck park, the committee stated. Wojcicki has again and again expressed her need to pluck the corporate personal, however it’s now not sunlit if she is going to post some other proposal to take action.

23andMe didn’t straight away reply to CNBC’s request for remark.

WATCH: The get up and fall of 23andMe