DNA Tester 23andMe Files Bankruptcy to Sell Firm, CEO Quits

The Silicon Valley-based steadfast volition proceed selling itself to investors with the extremity of getting astatine slightest 1 binding connection by May 7, according to tribunal papers. That deadline was acceptable by lenders, who are seeking tribunal support to indebtedness 23andMe arsenic overmuch arsenic $35 cardinal to money its bankruptcy.

The Chapter 11 filing successful St. Louis volition besides resoluteness its ineligible troubles related to a information breach, according to a statement. That hack compromised accusation connected millions of radical and gave a hacker nonstop entree to astir 14,000 idiosyncratic accounts.

The institution plans to proceed operating passim the income process, it said.

The bankruptcy is the latest section successful the saga of the personalized DNA investigating institution that was valued astatine $3.5 cardinal erstwhile it went nationalist successful 2021. Wojcicki’s efforts to instrumentality the struggling institution backstage were rejected by a committee earlier this month.

The institution has $277.4 cardinal successful assets and $214.7 cardinal successful liabilities, tribunal documents show. It received a debtor-in-possession financing committedness of up to $35 cardinal from JMB Capital Partners, according to the statement.

That indebtedness indispensable beryllium approved by the justice overseeing the case. The indebtedness carries a 14% involvement complaint and would wage a 2% committedness fee, a 6% exit interest and a $100,000 enactment fee, if approved.

“We expect the court-supervised process volition beforehand our efforts to code the operational and fiscal challenges we face, including further outgo reductions and the solution of ineligible and leasehold liabilities,” said Mark Jensen, seat and subordinate of the Special Committee of the Board of Directors.

Wojcicki is resigning from her relation arsenic main enforcement serviceman but volition proceed to service connected the board, institution said successful its statement. Joe Selsavage has been appointed arsenic interim CEO.

The lawsuit is 23andMe Holding Co., 25-40976, U.S. Bankruptcy Court Eastern District of Missouri (St. Louis).

--With assistance from Luca Casiraghi and Dorothy Ma.

(Adds details astir merchantability process and bankruptcy throughout.)

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