Comment by toomuchtodo
Comment by toomuchtodo 3 days ago
They're going bankrupt because they're almost out of cash [1]. The CEO is holding public investors hostage with the low ball take private offer LarsDu88 mentioned. The stock, NASDAQ: ME, currently trades at 29 cents/share [2] and will be delisted shortly [3]. Their failure to secure their customer DNA data with MFA cost them a $30M fine they must pay [4].
My comment you replied to was attempting to communicate that, because the CEO holds most of the control over the company, it is preferable to let it slip into bankruptcy (where equity and their control will be wiped out) vs continuing allowing them the control they have, which is not leading to a favorable outcome for the enterprise. This is potentially superior to recapitalizing the existing enterprise and continuing to allow the CEO to light capital on fire.
[1] https://investors.23andme.com/news-releases/news-release-det... (draw your attention to quarterly burn rate and cash on hand)
[2] https://finance.yahoo.com/quote/ME/
[3] https://www.bloomberg.com/news/articles/2024-05-10/strugglin... |https://archive.today/yTo01
At that burn rate it seems like the only recourse other than a buy out offer from another company at this point is to shutdown everything not related to cancer drug development and self-financing that endeavor.