All seven independent directors of 23andMe resigned from the corporate's board on Tuesday. CEO Anne Wojcicki said in a memo to employees that she was “surprised and disappointed” by the move.
Wojcicki, who co-founded 23andMe in 2006, said she stays committed to taking the corporate private.
The genetic testing company went public in 2021 via a special purpose acquisition company (SPAC), and its share price has been largely in free fall since then, falling greater than 95% from its peak. Directors formed a special committee in late March to explore potential ways forward.
Wojcicki submitted a proposal to denationalise the corporate in July, but rejected rejected by the Special Committee, also since it didn’t grant a premium on the then closing price of 40 cents per share.
In a letter In response to Wojcicki on Tuesday, the administrators said they’d not yet seen a “fully funded, carefully crafted and actionable proposal that is in the best interests of unaffiliated shareholders.” The directors said they disagreed with Wojcicki on the “strategic direction of the company” and had due to this fact decided to resign effective immediately.
“Given that we have not seen any significant progress over the past five months, we believe no such proposal is on the horizon,” they wrote. “The Special Committee is therefore not prepared to consider any further extensions and the Board concurs with the Special Committee's decision.”
Wojcicki wrote in the worker memo, seen by CNBC, that she still sees taking 23andMe private because the “best opportunity for long-term success.” The company will begin searching for brand new independent board members, she added.
Far from its former valuation of $3.5 billion, 23andMe now has a market capitalization of lower than $200 million. Shares closed at 34 cents on Tuesday.
Here is Wojcicki’s full memo:
Team23,
We would love to tell you that the Board of Directors of 23andMe has Press release this afternoon with the announcement that each one independent directors have resigned from the Board of Directors with immediate effect.
I’m surprised and upset by the administrators' decision to resign.
I actually have been dedicated to 23andMe's mission for the past 18 years and imagine strongly that genetic information has the potential to remodel healthcare and the therapeutic discovery process. I remain committed to our customers, my employees and our shareholders to assist us achieve our goals. I proceed to imagine that we’re higher positioned to attain our mission and goals outside of the short-term pressures of the general public markets and that taking 23andMe private offers the most effective opportunity for long-term success.
We will immediately begin the seek for independent directors. I would love to thank the board members for his or her service to the corporate and its shareholders.
I can't provide you with any more information in the mean time, but we are going to update this on Feisty on Thursday as soon as possible.
Anne
REGARD: 23andMe CEO requests company to be privatized
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