In this article, all seven independent directors of 23andMe resigned from the company’s board on Tuesday, which CEO Anne Wojcicki expressed as leaving her “surprised and disappointed” in a memo to employees. Wojcicki, who co-founded 23andMe in 2006, stated her continued commitment to taking the company private.
The genetic-testing company went public in 2021 through a special purpose acquisition company (SPAC), with the share price experiencing a significant decline of over 95% from its peak. A special committee was established by the directors in late March to explore potential paths forward. Wojcicki proposed taking the company private in July, but the special committee rejected the proposal, citing the lack of a premium to the closing price of 40 cents per share at the time.
In a letter to Wojcicki, the directors mentioned that they had not received a fully financed and actionable proposal that would benefit the non-affiliated shareholders. They disagreed with Wojcicki on the strategic direction for the company, leading to their immediate resignation.
Wojcicki, in the employee memo seen by CNBC, reiterated her belief that privatizing 23andMe presents the best opportunity for long-term success. The company will initiate a search for new independent directors to replenish the board.
With a current market cap of under $200 million, a significant drop from its previous valuation of $3.5 billion, 23andMe’s shares closed at 34 cents on Tuesday. Wojcicki’s full memo to the team expressed her surprise and disappointment at the directors’ resignation and her continued dedication to the company’s mission and goals. She emphasized the potential benefits of operating outside the public markets and the pursuit of long-term success through privatization.
