Anne Wojcicki, co-founder and CEO of 23andme Inc., at the South by Southwest (SXSW) festival in Austin, Texas, USA, Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty Images
All seven independent directors 23andMe Chief Executive Officer Anne Wojcicki stepped down from the company’s board of directors on Tuesday, saying she was “surprised and disappointed” by the departure, according to a memo to employees.
Wojcicki, who co-founded 23andMe in 2006, said he remains committed to taking the company private.
The genetic testing company went public in 2021 through a special purpose acquisition company, or SPAC, but its shares have almost completely tanked since then, dropping more than 95% from their peak. Directors formed a special committee in late March to explore the way forward.
Wojcicki submitted a proposal to take the company private in July. Rejected The special committee rejected the proposal, in part because it did not offer a premium to the then-closing price of 40 cents per share.
in letter The directors said on Tuesday they had not yet seen a “well-funded, fully considered and viable proposal for Wojcicki that would maximize the returns for unaffiliated shareholders.” They said they had decided to step down immediately because they disagreed with Wojcicki about the “strategic direction of the company.”
“Given the lack of significant progress over the past five months, we believe that no such proposal will be forthcoming,” they wrote. “Accordingly, the special committee does not intend to consider a further extension and the board agrees with the special committee’s decision.”
In a memo to employees seen by CNBC, Wojcicki wrote that he still believes taking 23&Me private represents 23&Me’s “best opportunity for long-term success.” The company will begin recruiting new independent directors to join its board, Wojcicki added.
23andMe’s market capitalization is now less than $200 million, a far cry from the $3.5 billion it once held, and it closed at 34 cents on Tuesday.
Read Wojcicki’s full memo below.
Team 23,
23andMe’s board of directors press release This afternoon, the company announced that all of its independent directors would step down with immediate effect.
We are surprised and disappointed by the directors’ decision to step down.
I have been committed to 23andMe’s mission for the past 18 years and believe strongly in the potential of genetic information to transform healthcare and the cure discovery process. I remain committed to our customers, employees and shareholders in achieving our goals. I believe that by removing ourselves from the short-term pressures of the stock market, we are better positioned to achieve our mission and goals and that taking 23andMe private represents our best opportunity for long-term success.
The Company will immediately begin the process of selecting independent directors to join its Board of Directors, and we thank the directors for their service to the Company and its shareholders.
We don’t have any additional information to share at this time, but we’ll update you as soon as we can on Thursday’s Feisty.
Anne
clock: 23andMe CEO files to take company private
