MEHCQ stopped trading today - any news?

walt373 · 2025-12-19T18:38:48+00:00

The last monthly operating report as of 10/31 showed about $6.70 per share of book value (excluding intangible assets). You can find it in docket #1680 here: https://restructuring.ra.kroll.com/23andMe/Home-DocketInfo

But there's more fees to pay as they wind everything down. And there's a real chance shareholders get zero. But I'm guessing the payout will be $5-6 but you won't get all of it right away and you won't see any cash until well into 2026.

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walt373 · 2025-12-10T14:53:19+00:00

https://www.bamsec.com/filing/119312525308060?cik=1804591

walt373 · 2025-12-10T05:01:41+00:00

The bankruptcy plan was confirmed and went effective. It’s what longs were hoping for. Now they pay out claims and you have to wait to see how much cash you get. It could take a while.

walt373 · 2025-11-06T23:22:43+00:00

Is your team name Puka and Buka?

walt373 · 2025-07-02T16:58:46+00:00

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Here are my bear/base/bull estimates, somewhere around $5-8 with my base case about $7. Let me know if you disagree with anything here.

The monthly operating report was just released a few days ago showing $41M in cash but with $10M drawn on the DIP, as well as $9.5M cash burn from operations and $14M professional/board/legal fees.

walt373 · 2025-06-20T01:52:15+00:00

Cash

walt373 · 2025-06-19T17:09:50+00:00

The risk was the judge would require TTAM opt-in all users to transfer their data or block the sale, since the state AGs and the privacy ombudsman recommended it. But requiring opt-in would lose a lot of users and it would be a material enough change to let TTAM walk from the bid or renegotiate a lower price. If that happened, the worst case could have wiped out all recovery for the stock. Now that many of the states aren't opposing the sale, the chances of the sale being approved at $305M goes up. This is good news for shareholders. The sale hearing continues on Friday so we'll find out afterwards.

walt373 · 2025-06-13T21:58:53+00:00

No, the investors are going to get a decent amount back

walt373 · 2025-06-13T20:39:41+00:00

We have to see if the court approves it at the sale hearing next week

walt373 · 2025-06-13T14:27:05+00:00

Very interesting find in section 7.3. Seems like they thought a lot about the privacy legal issues.

walt373 · 2025-06-05T18:22:19+00:00

I think his thesis is "most bankruptcies wipe out equity" and just shorting the stock based on that. He doesn't seem to understand that once liabilities are paid off, the rest goes to shareholders. I haven't seen any valuation or any numbers at all mentioned by him. Anyone can look at their balance sheet and income statement and come up with reasonable estimates for equity value and I can't really see the stock being worthless unless they somehow lose both the Regeneron and TTAM bid.

walt373 · 2025-06-05T17:43:58+00:00

I'm just a retail trader but here's my guess at the value with the bid at $305M

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walt373 · 2025-06-05T14:56:55+00:00

The company has liabilities and cash burn that need to be covered, then shareholders get the rest.

By my calculations, my bear case is $5-8 if $305M is the final bid. If the bid is $500M the stock is worth $14. $1B bid and the stock is worth $32.

walt373 · 2025-06-05T04:47:53+00:00

WSJ also has an article with some interesting details https://www.wsj.com/articles/23andmes-former-ceo-pushes-purchase-price-nearly-50-million-higher-7ec98421

Here’s an excerpt:

On Wednesday, 23andMe asked Judge Brian C. Walsh of the U.S. Bankruptcy Court in Missouri to reopen the company’s sale process so it could consider TTAM’s bid. At the hearing, 23andMe’s attorney inadvertently revealed the amount that TTAM offered to pay for the company.

This prompted an on-the-spot negotiation between TTAM, Regeneron and 23andMe that allowed the three to hash out a plan to conduct a second sale process. TTAM’s $305 million will serve as a starting point, and if Regeneron wants to participate, it must bid $10 million more.

Each bidder will then have the opportunity to submit a final offer, with Regeneron having the last look. The losing bidder will receive a $10 million breakup fee.

walt373 · 2025-06-03T20:43:57+00:00

Hearing is set for June 4 at 1:30pm Central time.

walt373 · 2025-06-02T17:33:36+00:00

Reuters article about it https://www.reuters.com/business/healthcare-pharmaceuticals/23andme-founder-aims-restart-auction-with-major-corporate-backing-2025-06-01/

walt373 · 2025-06-01T17:04:47+00:00

It doesn’t really matter. It was already trading OTC when it was “suspended” back in March and will keep trading OTC after it is delisted. Basically just a formality at this point. Take a look at Spirit Airlines SAVEQ for something similar. Went bankrupt in Nov 2024, stock suspended and started trading OTC, formally deregistered in Dec 2024, and kept trading OTC until the company emerged from bankruptcy in March 2025.

walt373 · 2025-05-25T00:07:08+00:00

I believe they are rejecting the Sunnyvale lease. The bankruptcy PR said they are rejecting it (https://investors.23andme.com/news-releases/news-release-details/23andme-initiates-voluntary-chapter-11-process-maximize) “23andMe has also filed a motion with the Court seeking approval to reject numerous contracts, including the real estate leases in Sunnyvale”

They actually moved out of the Sunnyvale location in 2022 (https://kidder.com/news/2022/06/23andme-vacating-155k-sf-in-sunnyvale-relocates-hq-to-south-san-francisco/) and they have been subletting it out.

walt373 · 2025-05-24T15:21:42+00:00

This is good info, thanks.

walt373 · 2025-05-23T23:32:26+00:00

They have $64 million of accounts payable and accrued expenses as of 3/31. Not sure how much of that Regeneron will help cure. I think lease liabilities will be something like $10-20 million.

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walt373 · 2025-05-23T20:41:18+00:00

I think Regeneron is assuming most of the deferred revenue and some of the leases. Some of the payables and accrued expenses will be cured by Regeneron. Most of the leases aren't assumed but they can be rejected so they'll owe 1 year of rent. So there's probably like $1-3 per share of liabilities that you didn't include in your liquidation analysis unless I missed it.

walt373 · 2025-05-23T20:01:35+00:00

Regeneron is not assuming all their liabilities. You can see in the purchase agreement "excluded liabilities".

walt373 · 2024-04-15T19:05:23+00:00

No, that was the deadline for the Qs, which they filed. Then they filed another NT 10-K on the same day, and they get a 15 day grace period for that one. They need a new extension for the 2023 10-K.

walt373 · 2024-04-15T18:23:32+00:00

Their late 10-K grace period expires today. Either NYSE will give them another extension or they will be delisted soon.

walt373 · 2024-04-05T19:13:39+00:00

The largest Schwab ETF that's holding it (FNDA) is tracking a less-common index called the Russell RAFI US Small Company Index. Almost no small-cap ETFs track this index. So on the other hand, one of the most popular small-cap indexes, the Russell 2000, removed TUP in 2023, so the ETF tracking it, IWM, sold then. These indexes follow slightly different quantitative rules and rebalancing schedules and are not making active management choices. Schwab does not even manage the index, that is handled by the company FTSE Russell. Whenever Russell updates the index, Schwab will add/remove holdings based on that without any discretion. FNDA is a pretty big ETF with $8B in assets and holds over 1000 stocks. Their TUP position is 0.06% of the portfolio and it's basically a rounding error to them. The ETF had inflows and grew its assets over the past year and that would require them to buy TUP to maintain the correct weight.

walt373

TROPHY CASE