23Andme files for bankruptcy, Anne Wojcicki step back as CEO
Anne Wojcicki, co -founder and Chief Executive Officer from 23Andme Inc., during the South by Southwest (SXSW) Festival in Austin, Texas, USA, on Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty pictures
Competed genetic firm 23andmeOnce worth 6 billion US dollars, the insolvency protection of insolvency capacity in Missouri applied for Sunday evening.
The company’s CEO, Anne Wojcicki, immediately resigned from her role as CEO of Effective, although she remains a member of the Board of Directors. Joseph Selsavage, Chief Financial and Accounting Officer from 23Andme, will act as an interim CEO, according to registration with the US Securities and Exchange Commission.
“We have achieved a lot of success, but I also take responsibility for the challenges we have today,” Wojcicki wrote in a contribution early Monday morning in a contribution to X. “There is no doubt that the challenges of 23Andme due to a developed business model were real, but my belief in the company and its future is steadfast.”
23Andme refused to comment on the submission.
The former billionaire was a co-founder of 23Andme in 2006, and the company pushed into the mainstream because of its DNA test kits at home, which gave the customer an insight into their family history and genetic profiles. In 2021, the five-time CNBC Disruptor 50 Company went to the stock exchange with a merger with a special company for purposes, which rated 23 and at that time with around $ 3.5 billion.
The 23Ande stock has been mostly outdoors in recent years when the company had difficulty getting recurring income and liable research and therapeutic agents. By the end of Monday, the company has a market capitalization of less than 20 million US dollars.
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Last March, the independent directors of 23Andme formed a special committee to evaluate the company’s potential paths. Wojcicki submitted several suggestions to take the company privately, but everyone was rejected. The special committee “decided to unanimously reject the latest proposal from Wojcicki’s in the early this month.
If the goal of 23Andme to sell his assets via a chapter 11 plan is approved by the court, the company will “obtain actively qualified offers” using a 45-day process. Wojcicki plans to pursue the company as an independent bidder, she said in her post on Monday.
According to the bankruptcy registration, 23Andme has between 100 and 500 million US dollars of estimated assets and between 100 and 500 million US dollars of estimated liabilities.
In addition to the financial problems, the database of privacy is concerned that the genetic database of 23Andme has whirled in recent years. In October 2023, Hacker accessed the information of almost 7 million customers.
The California Attorney General Rob Bonta issued a consumer alarm on Friday in which the residents were asked to delete their genetic data from the 23Andme website.
23Andme said that there will be no changes in the way in which customer data stores, protects or manages, protects or manages customer data, and the operating business continues as usual.
“If I think about the future, I will continue to use that customers have selection and transparency in relation to their personal data regardless of the platform,” said Wojcicki.
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