Anne Wojcicki, co-founder and chief executive officer of 23andme Inc., throughout the South by Southwest (SXSW) festival in Austin, Texas, US, on Friday, March 10, 2023.Â
Jordan Vonderhaar | Bloomberg | Getty Images
All seven independent directors of 23andMe resigned from the corporate’s board Tuesday, a move that CEO Anne Wojcicki said left her “surprised and dissatisfied,” in line with a memo to employees.
Wojcicki, who co-founded 23andMe in 2006, said she stays committed to taking the corporate private.
The genetic-testing company went public in 2021 through a special purpose acquisition company (SPAC), and the share price has been mostly in freefall since then, dropping greater than 95% from its high. The administrators formed a special committee in late March to explore potential paths forward.
Wojcicki submitted a proposal to take the corporate private in July, however it was rejected by the special committee, partly since it didn’t provide a premium to the closing price of 40 cents per share on the time.
In a letter to Wojcicki on Tuesday, the administrators said they’d yet to see a “fully financed, fully diligenced, actionable proposal that’s in the most effective interests of the non-affiliated shareholders.” The administrators said they disagree with Wojcicki in regards to the “strategic direction for the corporate,” in order that they decided to resign effective immediately.
“That we have now not seen any notable progress over the past 5 months leads us to consider no such proposal is forthcoming,” they wrote. “The Special Committee is due to this fact unwilling to think about further extensions, and the Board agrees with the Special Committee’s determination.”
Wojcicki wrote in the worker memo, which was viewed by CNBC, that she still sees taking 23andMe private as its “best opportunity for long run success.” The corporate will begin a search for brand new independent directors to hitch the board, she added.
Removed from its onetime valuation of $3.5 billion, 23andMe now has a market cap of under $200 million. The shares closed at 34 cents on Tuesday.
Here’s Wojcicki’s full memo:
Team 23,
We desired to let you understand that the 23andMe Board issued a press release this afternoon stating that every one of the independent directors have resigned from the Board, effective immediately.
I’m surprised and dissatisfied by the choice of the administrators to resign.   Â
I actually have been committed to the mission of 23andMe for the last 18 years and consider strongly within the potential for genetic information to remodel healthcare and the therapeutic discovery process. I remain committed to our customers, my employees and to our stockholders to attain our goals. I proceed to consider that we can be higher positioned to attain our mission and goals outside of the short term pressures of the general public markets and that taking 23andMe private can be the most effective opportunity for long run success.Â
We’ll immediately begin identifying independent directors to hitch the board. I would like to thank the administrators for his or her service to the corporate and its stockholders.Â
I haven’t got additional information to share at the moment, but we’ll update as we are able to at Thursday’s Feisty.  Â
Anne
WATCH: 23andMe CEO files to take company private
