23andMe Provides Update Regarding Court-Supervised Sale Process

Rhea-AI Summary

23andMe (OTC: MEHCQ) has provided an update on its court-supervised asset sale process and customer data protection measures. The company's Special Committee will evaluate acquisition bids under U.S. Bankruptcy Court supervision. Key highlights:

- No bids will be accepted from entities based in or controlled by countries of concern (China, Cuba, Iran, North Korea, Russia, Venezuela)
- Bidders must guarantee compliance with company privacy policies and laws
- Potential bidders must detail intended use of customer data and privacy programs
- Company has filed motion to appoint independent Customer Data Representative (CDR) to review transaction compliance

The process requires regulatory approvals, including Hart-Scott-Rodino Act and Committee on Foreign Investment reviews. 23andMe maintains strict data privacy protocols and operates under consumer and genetic privacy laws.

Positive

• Strong data protection measures implemented for asset sale
• Multiple layers of regulatory oversight ensuring transaction security
• Strict bidder screening process to protect national security interests

Negative

• Company remains in bankruptcy proceedings (Chapter 11)
• Potential changes to data privacy policies possible under new ownership
• Asset sale process may face delays due to regulatory review requirements

SAN FRANCISCO, April 18, 2025 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (“23andMe” or the “Company”) (OTC: MEHCQ), a leading human genetics and biotechnology company, today provided additional information on the protections in place for customer data in connection with the court-supervised sale of the Company’s assets. The process is being led by the Special Committee of the Company’s Board of Directors, which will evaluate potential acquisition bids, and supervised by the U.S. Bankruptcy Court for the Eastern District of Missouri (the “Court”), an independent third party who must review and approve any transaction.

Regulatory Review
A key factor in the consideration of qualified bids will be a potential bidder’s ability to consummate a transaction and pass required regulatory reviews expeditiously, including, as applicable, approvals under the Hart-Scott-Rodino Act and from the Committee on Foreign Investment in the United States. In particular, no bids will be accepted from entities based in or with controlling investments from countries of concern, such as China, Cuba, Iran, North Korea, Russia or Venezuela, which raise concerns around customer privacy and national security, the potential detrimental impact from a protracted regulatory review, as well as the likelihood that such a transaction would not survive regulatory scrutiny.

Court-Approved Bidding Procedures
23andMe is requiring all bidders in the court-supervised marketing process to guaranty that they will comply with the Company’s privacy policies and applicable law. 23andMe has also requested that potential bidders submit detailed descriptions of their intended use of any purchased customer data, outline the privacy programs and security controls they have in place or would implement, and disclose whether any modification of existing privacy policies would be requested – as any changes must be made in accordance with the terms of the Company’s privacy policies and applicable law.

Recognizing the importance of data protection, 23andMe filed a motion to appoint an independent Customer Data Representative ("CDR"). If approved by the Court, a CDR would serve as another neutral third party, reviewing whether any proposed transaction complies with our privacy policies and applicable data privacy laws, and maintains customer data security.

23andMe’s Current Policies
23andMe takes its responsibility as a steward of customer data seriously. The Company maintains strict data privacy and security protocols, and it is subject to consumer privacy and genetic privacy laws. 23andMe has adopted these standards Company-wide, extending safeguards to all customers globally and operating with a level of transparency that exceeds traditional health care industry standards.

Additional information regarding 23andMe’s Chapter 11 filing, proceedings and claims process will be 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.

About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology company empowering a healthier future. For more information, please visit www.23andme.com.

Forward-Looking Statements
This 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 Information
investors@23andme.com
press@23andme.com

FAQ

What restrictions are in place for bidders in 23andMe's (MEHCQ) asset sale process?

Bidders must guarantee compliance with privacy policies, detail intended data use, and cannot be from restricted countries like China, Russia, or North Korea. All bids require U.S. Bankruptcy Court approval.

How will 23andMe (MEHCQ) protect customer data during the bankruptcy sale?

The company is appointing a Customer Data Representative, maintaining strict privacy protocols, and requiring bidders to comply with privacy policies and security controls under court supervision.

What regulatory approvals are needed for 23andMe's (MEHCQ) asset sale?

Bidders must obtain approvals under the Hart-Scott-Rodino Act and from the Committee on Foreign Investment in the United States.

What role does the U.S. Bankruptcy Court play in 23andMe's (MEHCQ) sale process?

The Court supervises the entire sale process and must review and approve any transaction, including the appointment of an independent Customer Data Representative.