Southern San Francisco -based genetic test attempt 23Andme announced that the company has applied for bankruptcy protection and saw that its shares fell more than 50%.
On Sunday, the company announced that the US will seek a court authority to sell its assets and call it the best way to maximize the value of the enterprise, according to a file in the Missouri Eastern Region Bankruptcy Court.
The announcement said that General Manager Anne Wojcicki will resign but will remain on the board of directors.
More than 15 million people provided DNA examples of 23andme and represented a genetic information that could be sold in bankruptcy transactions.
However, the company struggled to establish a profitable business on the efforts of Licensing DNA test and data to pharmaceutical companies.
Shortly after opening to the public in 2021, 23Andme, worth $ 6 billion, gained popularity to provide customers a window to their descendants and genetic health. However, the company struggled to gain business again, since each customer’s DNA sample should be collected only once.
Matthew Kvarda, the main restructuring officer, told Bloomberg to Bloomberg.
According to the court documents, the company has $ 277.4 million assets and $ 214.7 million obligations.
California Atty. General Rob Bonda made a warning last week to remind consumers about the deletion of genetic data due to the company’s financial struggles. 23Andme customers can enter their accounts by logging in to their accounts.
“California has solid privacy laws that want consumers to seize control and delete a company’s genetic data, Bond said Bond. “Considering the declared financial shortage of 23Andme, I remind the California to call their rights and to think that 23andme to destroy the genetic material examples kept by the company.”
Mark Jensen, Chairman of the Board of Directors, said that the company would give priority to the protection of consumer data during a sales process. Wojcicki said that at the weekend, he still aims to buy the company’s assets in a mission at the weekend, but his efforts to get the company specially rejected by a committee this month.
“Data privacy will be an important issue in any potential process, Jensen said Jensen. “We are determined to continue to protect customer data and to be transparent in the future management of user data.”
In September, the company’s independent executives resigned after talks with Wojcicki to receive 23andme special. In November, the company announced that it will quit 40% of the labor force or more than 200 employees.
23Andme shares were closed with 73 cents on Monday after Bonda’s warning 59%.
Monday for the second time the 23ndme shares were traded below $ 1. The company divided 20 to 1 share in the autumn to comply with the NASDAQ listing requirements.
