23andMe CEO Ann Wojcicki 'Surprised and Disappointed' by Board Resignation: Read Memo
Anne Wojcicki, co-founder and CEO of 23andme Inc., during the South by Southwest (SXSW) festival on Friday, March 10, 2023 in Austin, Texas, U.S.
Jordan Vonderhaar Bloomberg Getty Images
It has seven independent directors 23 and I resigned from the company's board on Tuesday, a move that CEO Anne Wojcicki said “surprised and disappointed” her, according to a memo to employees.
Wojcicki, who co-founded 23andMe in 2006, said he is committed to taking the company private.
The genetic-testing company went public in 2021 through a special purpose acquisition company (SPAC), and since then the share price has been mostly in freefall, down more than 95% from its high. Directors formed a special committee in late March to explore possible ways forward.
Wojcicki submitted a proposal to take the company private in July, but it was rejected by the special committee, because it did not pay a premium for the closing price of 40 cents per share at the time.
In a letter to Wojcicki on Tuesday, the directors said they have yet to see a “fully funded, fully due diligence, actionable proposal that is in the best interest of non-affiliated shareholders.” The directors said they disagreed with Wojcicki about the “strategic direction for the company,” so they decided to resign, effective immediately.
“We have not seen any significant progress in the past 5 months that leads us to believe that no such proposal is imminent,” they wrote. “The Special Committee therefore does not wish to consider further enhancements, and the Board agrees with the Special Committee's determination.”
Wojcicki wrote in the employee memo, seen by CNBC, that he still sees taking 23andMe private as his “best chance for long-term success.” The company will begin searching 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 cap of less than $200 million. Shares closed at 34 cents on Tuesday.
Here's Wojcicki's full memo:
team 23,
We would like to inform you that the 23andMe Board issued a press release this afternoon stating that all independent directors have resigned from the Board, effective immediately.
I am surprised and disappointed by the decision of the directors to resign.
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 therapeutic discovery process. I am committed to our customers, my employees and our stockholders to achieve 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 market, and that taking 23andMe private will be our best chance for long-term success.
We will immediately begin identifying independent directors to join the Board. I would like to thank the Directors for their service to the Company and its stockholders.
I don't have additional information to share at this time, but we'll update as much as we can on Thursday's feast.
Annie
See: 23andMe CEO files to take company personal
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