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At-home DNA test company 23andMe has rejected a proposal from its co-founder and CEO to go private.
A special committee of its board of directors responded Friday to a proposal made by CEO Anne Wojcicki to buy all shares of the company not owned by her.
The committee rejected the offer because it did not meet its expectations.
“We are disappointed with the proposal for multiple reasons, including because it provides no premium to the closing price per share on Wednesday, July 31st, it lacks committed financing, and it is conditional in nature. Accordingly, we view your proposal as insufficient and not in the best interest of the non-affiliated shareholders,” the committee wrote in a letter to Wojcicki.
Wojcicki first announced her intentions to take the struggling company private in April and earlier this week filed a non-binding transaction proposal with the U.S. Securities and Exchange Commission (SEC).
According to the filing, Wojcicki offered to buy all outstanding shares of the company at $0.40 a share, an 11% premium of 23andMe’s closing stock price in April.
“Our experience with the short-term focus of the public markets has led me to believe that the Company will be best equipped to execute against this mission as a private entity, allowing us to remove certain public company costs and distractions,” Wojcicki wrote in the proposal.
She added, that she hoped to complete the transaction “as promptly as possible” and would not support any alternative deals.
Wojcicki founded the consumer DNA testing company that offers users insights into their ancestry in 2006, the company then went public over 10 years later in 2021. Its stock has fallen 78% over the last 12 months to $0.38.
The company’s revenue fell 30% to $64 million in the three months ending March 31, compared with $92 million during same period the prior year, due to slowing demand for its DNA testing kits.
The committee asked Wojcicki to withdraw her “stated intent to oppose any alternative transaction.” It said if it did not receive an improved offer from Wojcicki, the committee would pursue alternative deals including offers from third parties.