(Crankers) The following press release comes directly from 23andMe:
SAN FRANCISCO, March 23, 2025 (GLOBE NEWSWIRE) — 23andMe Holding Co. (“23andMe” or the “Company”) (Nasdaq: ME), a leading human genetics and biotechnology company, today announced that it has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri (the “Court”) to facilitate a sale process to maximize the value of its business. The Company intends to continue operating its business in the ordinary course throughout the sale process. There are no changes to the way the Company stores, manages, or protects customer data.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” said Mark Jensen, Chair and member of the Special Committee of the Board of Directors. “We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”
Jensen continued, “We want to thank our employees for their dedication to 23andMe’s mission. We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”
23andMe is seeking authorization from the Court to commence a process to sell substantially all of its assets through a chapter 11 plan or pursuant to Section 363 of the U.S. Bankruptcy Code. If approved by the Court, the Company, with the assistance of an independent investment banker, would actively solicit qualified bids over a 45-day process. If multiple qualified bids are submitted during the Court-supervised sale process, the Company plans to conduct an auction to maximize the value of its assets. Any buyer will be required to comply with applicable law with respect to the treatment of customer data and any transaction will be subject to customary regulatory approvals, including, as applicable, approvals under the Hart-Scott-Rodino Act and the Committee on Foreign Investment in the United States.
The Company has filed customary motions with the Court seeking a variety of “first-day” relief, including the authority to pay employee wages and benefits and compensate certain vendors and suppliers on a go-forward basis. 23andMe has also filed a motion with the Court seeking approval to reject numerous contracts, including the real estate leases in Sunnyvale and San Francisco, to reduce 23andMe’s ongoing operating expenses. The Company expects to receive Court approval for these requests.
In addition, 23andMe intends to use the proceedings to resolve all outstanding legal liabilities stemming from the previously disclosed October 2023 cyber incident.
23andMe has received a commitment for debtor-in-possession (“DIP”) financing of up to $35 million from JMB Capital Partners. Upon Court approval, the additional liquidity from the DIP financing, combined with cash generated from the Company’s ongoing operations, is expected to support the business during these proceedings.
The commencement of the proceedings follows the rejection by the Special Committee of the final non-binding acquisition proposal made by Anne Wojcicki and certain of her affiliates on March 10, 2025. Ms. Wojcicki’s proposal was included in an amended Schedule 13D filing made by Ms. Wojcicki and such affiliates with the Securities and Exchange Commission on March 11, 2025.
Read more on their official website.