Anne Wojcicki, co-founder and CEO of 23andme Inc., during the South by Southwest (SXSW) festival in Austin, Texas, US, on Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty Images
All seven of its independent directors 23 and I resigned from the company’s board on Tuesday, a move that CEO Anne Wojcicki said left her “surprised and disappointed,” 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 in 2021 through a special purpose acquisition company (SPAC), and the stock price has been mostly in freefall since then, falling more than 95% from its high. The filmmakers formed a special committee in late March to explore possible paths forward.
Wojcicki submitted a proposal to take the company private in July, but it was was rejected by the special committee, in part because it did not provide a premium to the closing price of 40 cents per share at the time.
In one letter to Wojcicki on Tuesday, directors said they have yet to see a “fully funded, fully vetted, workable proposal that is in the best interest of unaffiliated shareholders.” The directors said they disagreed with Wojcicki about the “strategic direction for the company,” so they decided to step down immediately.
“The fact that we have not seen any notable progress over the past 5 months leads us to believe that no such proposal exists,” they wrote. Accordingly, the Special Committee is not prepared to consider further extensions and the Board of Directors agrees with the Special Committee’s decision.”
Wojcicki wrote in the employee memo, seen by CNBC, that she still sees 23andMe going private as the “best opportunity for long-term success.” The company will begin the search for new independent directors to join the board, he added.
Far from its one-time valuation of $3.5 billion, 23andMe now has a market capitalization of less than $200 million. Shares closed at 34 cents on Tuesday.
Here’s Wojcicki’s full note:
Group 23,
We wanted to let you know that the 23andMe Board has issued a press release this afternoon stating that all independent directors have resigned from the Board of Directors, effective immediately.
I am surprised and disappointed by the managers decision to resign.
I have been dedicated to 23andMe’s mission for the past 18 years and believe strongly in the potential of genetic information to transform healthcare and the therapeutic discovery process. I remain committed to our customers, my employees and our shareholders in achieving our goals. I continue to believe that we will be better positioned to achieve our mission and goals outside of the short-term pressures of the public markets, and that taking 23andMe private will be our best opportunity for long-term success.
We will immediately begin identifying independent directors to join the board. I want to thank the directors for their service to the company and its shareholders.
I don’t have any additional information to share at this time, but we’ll update as much as we can on Thursday’s Feisty.
Anna
CLOCK: 23andMe CEO files to take company private
