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Takeaways
- Shares of DNA tester 23andMe plunged Monday after it announced bankruptcy and a plan to sell its assets.
- Anne Wojcicki also resigns and says in a statement that she will be involved in the bidder process after unsuccessful attempts to take private the company.
- Shares fell more than 40% during premarket trading.
Shares in DNA testing giant 23andMe will open at $1 on Monday after the company filed Chapter 11 bankruptcy and announced its CEO’s resignation on Sunday.
23andMe said it plans to launch a court-supervised sale or auction of its assets, as board member Mark Jensen called it the "best path forward to maximize the value of the business."
Anne Wojcicki, 23andMe’s CEO, announced her resignation along with the bankruptcy sale. Her resignation is effective immediately. CFO Joe Selsavage was named to the interim CEO role, while Wojcicki will remain a member of the company's board.
Wojcicki announced his plans to take 23andMe private last year. However, the board of directors resigned over disagreements in September. The new board of the company rejected an offer made by a group led Wojcicki, to buy all 23andMe shares outstanding earlier this month.
In a statement on social media, Wojcicki said she would "equally take accountability for the challenges we have today," and said she plans to be involved as a bidder in the bankruptcy auction process.
Shares in the DNA tester fell more than 40% before Monday’s market opened. The company's market capitalization has fallen below $50 million, a fraction of the $6 billion value it peaked at in the months following its initial public offering.
