Anne Wojcicki, co-founder and CEO of 23andme Inc. during the South by Southwest (SXSW) music festival in Austin, Texas, United States, Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty Images
All seven independent directors 23 and me She resigned from the company’s board on Tuesday, a move Chief Executive Anne Wojcicki said she was “surprised and disappointed” in, according to a memo to employees.
Wojcicki, who co-founded 23andMe in 2006, said she remains committed to taking the company private.
The genetic testing company went public through a special purpose acquisition company (SPAC) in 2021, and its stock price has plummeted for most of the time since then, falling more than 95% from its high point. Directors formed a special committee in late March to explore potential paths forward.
Wojcicki submitted a proposal to take the company private in July, but rejected by the special committee, in part because it did not offer a premium over the closing price of 40 cents a share at the time.
in a letter On Tuesday, directors told Wojcicki that they had not yet seen a “proposal that is fully funded, due diligence, actionable and in the best interests of unrelated shareholders.” The directors said they disagreed with Wojcicki’s views on the “strategic direction of the company” and decided to resign immediately.
“We have not seen any significant progress over the past five months, which leads us to believe that such a proposal will not be forthcoming,” they wrote. “Consequently, the Special Committee is unwilling to consider a further extension and the Board agrees with the Special Committee’s decision.”
Wojcicki wrote in an employee memo seen by CNBC that she still believes taking 23andMe private is its “best chance for long-term success.” She added that the company would begin a search for new independent directors to join the board.
23andMe’s market capitalization was well below $3.5 billion and is now worth less than $200 million. The stock closed at 34 cents on Tuesday.
Here’s Wojcicki’s full memo:
23 teams,
We want to let you know that the 23andMe Board of Directors has released Press release It was announced this afternoon that all independent directors have resigned from the board, effective immediately.
I am surprised and disappointed by the director’s decision to resign.
I have been committed to 23andMe’s mission for the past 18 years and believe in the potential of genetic information to transform the process of health care and treatment discovery. I remain committed to our customers, employees and shareholders to achieve our goals. I continue to believe that outside of the short-term pressures of the public markets, we will be better able to achieve our mission and goals and that taking 23andMe private will provide the best chance for long-term success.
We will begin the search for independent directors to join the Board of Directors immediately. I would like to thank the directors for their service to the company and its shareholders.
I don’t have any more information to share at this time, but we’ll update as best we can on Thursday’s Feisty.
Anne
watch: 23andMe CEO files to take company private
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