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23andMe Confirms All Potential Buyers Must Agree to Comply With Privacy Policy and Applicable Law

1. 23andMe filed for Chapter 11 bankruptcy on March 23, 2025. 2. Court approved motions to continue business operations and employee compensations. 3. The company plans to sell assets under bankruptcy regulations. 4. A $35 million debtor-in-possession financing facility was authorized. 5. Bidding for assets will occur within a 45-day window post-filing.

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FAQ

Why Very Bearish?

The Chapter 11 filing indicates severe financial distress, reminiscent of similar cases like Kodak’s bankruptcy in 2012, which led to substantial stock depreciation and investor losses.

How important is it?

The bankruptcy filing directly affects stock value and investor interest, likely leading to further declines.

Why Long Term?

Recovery from bankruptcy proceedings often takes years; investor sentiment may remain negative throughout then.

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Receives Court Approval for First Day Motions to Support Ongoing Business Operations March 26, 2025 18:57 ET  | Source: 23andMe, Inc. SAN FRANCISCO, March 26, 2025 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (“23andMe” or the “Company”) (Nasdaq: ME), a leading human genetics and biotechnology company, today announced that it has received approvals from the U.S. Bankruptcy Court for the Eastern District of Missouri (the “Court”) for its “first day” motions related to 23andMe’s voluntary Chapter 11 petitions filed March 23, 2025, including authorization to pay employee wages and benefits and compensate certain vendors and suppliers in the ordinary course for goods and services provided and to enter into the binding term sheet for a $35 million debtor-in-possession financing facility from JMB Capital Partners (the “DIP Facility”). 23andMe remains committed to its customers while it seeks to implement an efficient Chapter 11 process that maximizes the value for all of its stakeholders. As discussed in Court today, the Company’s existing consumer privacy policies remain in place, and the Company has not changed how it manages or protects customer data through any of the motions that were approved by the Court. The Court authorized 23andMe 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 and approved the bidding procedures associated with the process. To constitute a qualified bid, potential buyers must, among other requirements, agree to comply with 23andMe’s consumer privacy policy and all applicable laws with respect to the treatment of customer data. The Company, with the assistance of Moelis, its independent investment banker, will actively solicit qualified bids over a 45-day process following the Petition Date. Any sale transaction involving the transfer of customer data will be subject to notice and oversight and approval by the Court and customary regulatory approvals. A “second day” hearing for the Court to consider the Company’s additional requested relief, including entry of an order approving the DIP Facility to further support ongoing operations, is scheduled for April 22. Additional information regarding 23andMe’s Chapter 11 filing, proceedings and claims process is available at https://restructuring.ra.kroll.com/23andMe. Questions about the claims process should be directed to the Company’s claims agent, Kroll, at 23andMeInfo@ra.kroll.com or by calling (888) 367-7556. AdvisorsPaul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis & Bockius LLP are serving as legal counsel to 23andMe, and Alvarez & Marsal North America, LLC as restructuring advisor. Moelis & Company LLC is serving as investment banker and Goodwin Procter LLP is serving as legal advisor to the Special Committee of 23andMe’s Board of Directors. Reevemark and Scale are serving as communications advisors to the Company. About 23andMe23andMe is a genetics-led consumer healthcare and biotechnology company empowering a healthier future. For more information, please visit www.23andme.com. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," “predicts,” "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements, which could include the following: risks and uncertainties relating to the Company’s Chapter 11 case (the “Chapter 11 case”), including but not limited to, the Company’s ability to obtain bankruptcy court approval with respect to motions in the Chapter 11 case, the effects of the Chapter 11 case on the Company and on the interests of various constituents, bankruptcy court rulings in the Chapter 11 case and the outcome of the Chapter 11 case in general, the Company’s plans to pursue a structured sale of its assets pursuant to a competitive auction and sale process pursuant to a Chapter 11 plan or under Section 363 of the Bankruptcy Code, the length of time the Company will operate under the Chapter 11 case, risks associated with any third-party motions in the Chapter 11 case, the potential adverse effects of the Chapter 11 case on the Company’s liquidity or results of operations and increased legal and other professional costs necessary to execute the Company’s reorganization; whether the Company will emerge, in whole or in part, from the Chapter 11 case as a going concern, trading price and volatility of the Company’s Class A Common Stock, and the ability of the Company to remain listed on The NASDAQ Capital Market. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, 23andMe undertakes no obligation to update them, whether as a result of new information, developments, or otherwise. Contact Informationinvestors@23andme.com press@23andme.com

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