The shares of DNA testing big 23andMe plunged after the corporate filed for Chapter 11 chapter and introduced the resignation of its CEO on Sunday.
A pedestrian walks by an indication posted in entrance of the 23andMe headquarters on February 1, 2024 in Sunnyvale, California.(Justin Sullivan/AFP)
The corporate’s shares plummeted 59.22% or by $1.06, closing at $0.73 on the Nasdaq after Monday’s buying and selling session ended.
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Monday’s pre-market time noticed the shares down over 40%, with its market capitalization falling beneath $50 million. It is a fraction of the $6 billion worth it had throughout a peaked within the months following its preliminary public providing (IPO).
What’s 23andMe?
23andMe is a Silicon Valley-based firm which gives ancestry and well being info to its prospects utilizing a mail-back saliva take a look at.
It went public in 2021, claims that it has 15 million prospects, however has since seen a decline in gross sales over the current months when the DNA testing craze pale and the corporate additionally suffered an information breach.
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The corporate witnessed a hack and information breach incident in 2023, endangering the info of 6.9 million accounts referring to names, intercourse, start 12 months, location, photographs, well being info, and genetic ancestry outcomes.
What occurred to 23andMe?
23andMe introduced that it’s planning a court-supervised sale or public sale of its belongings with the corporate submitting ” a voluntary petition for reorganization” with a state chapter court docket in Missouri.
It had additionally dismissed of 40 p.c of its employees in November, which is about 200 folks, together with suspending its analysis packages.
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It additionally had rejected a takeover supply from its co-founder and CEO Anne Wojcicki, who has resigned from her place to facilitate her place as an impartial bidder, however may even stay on the corporate’s board of administrators.