Days after proposing to settle a knowledge breach lawsuit for $30 million, 18-year-old genetic testing firm 23andMe now faces one other public hurdle: Seven impartial administrators of its board resigned on Tuesday via a pointed letter addressed to CEO Anne Wojcicki, who’s now the one remaining member of the board.
The resigning administrators, amongst whom have been YouTube CEO Neal Mohan and Sequoia VC Roelof Botha, known as out Wojcicki for not submitting a “absolutely financed, absolutely diligenced, actionable proposal” to take the corporate non-public over the previous 5 months. They wrote that their strategic course for 23andMe was totally different from Wojcicki’s.
“Due to that distinction and due to your concentrated voting energy, we imagine that it’s in the perfect pursuits of the Firm’s shareholders that we resign from the Board slightly than have a protracted and distracting distinction of view with you as to the course of the Firm,” they acknowledged.
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Wojcicki, who co-founded the corporate in 2006, controls 49% of 23andMe votes. In July, she submitted a proposal to purchase all of the shares she did not already personal at $0.40 per share and take the corporate non-public. A particular committee created by the corporate rejected her proposal, stating that it wasn’t in the perfect pursuits of shareholders.
Anne Wojcicki. Credit score: Kyle Grillot/Bloomberg through Getty Pictures
Wojcicki advised staff in a memo on Tuesday that she was “stunned and disillusioned” by the resignations and would instantly start discovering substitute administrators. She acknowledged that “taking 23andMe non-public would be the finest alternative for long-term success.”
23andMe, which was valued at $6 billion in 2021 shortly after going public, is now a penny inventory price 34 cents per share on the time of writing. The corporate has till November 4 to carry its inventory worth as much as no less than $1 per share or danger being delisted.
23andMe has confronted numerous public setbacks, together with a knowledge breach in October that impacted practically 7 million accounts and appeared to focus on folks with Chinese language or Ashkenazi Jewish ancestry. Clients filed a category motion lawsuit in January and 23andMe proposed a $30 million settlement earlier this month.
23andMe’s core product is a $99 ancestry package that requires a buyer to submit their spit in alternate for genetic insights. A $199 package advertises well being predisposition reviews. The corporate can also be growing medication in-house and testing them.
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