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The seven independent members of the board of personal genomics company 23andMe quit Tuesday amid opposition to CEO Anne Wojcicki’s plan to take the company private.
Ms. Wojcicki proposed in April to possibly take 23andMe off the stock market and take it private. She commands 49% of voting power among shareholders and owns more than 20% of the company’s shares.
“After months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the nonaffiliated shareholders. … It is also clear that we differ on the strategic direction for the company going forward. … We believe that it is in the best interests of the company’s shareholders that we resign,” the resigning members wrote in a letter to Ms. Wojcicki.
In late July, she specified her plan, expressing interest in buying all shares not “owned by her or her affiliates or any other stockholder that she invites to roll over their shares for cash consideration of $0.40 per share.”
The company’s stock traded at 36 cents Thursday.
The rest of the board turned down her proposal due to the price per share and a lack of a committed source of further funding for 23andMe.
The company has never made a profit, according to The Wall Street Journal, since users need to buy a genetics test only once and since attempts to develop a subscriber base and a DNA database for use in pharmaceuticals haven’t worked out.
In August, the board asked Ms. Wojcicki to stop opposing the involvement of third parties that could buy shares.
In a memo to employees Tuesday, Ms. Wojcicki said she was staying the course.
“I am surprised and disappointed by the decision of the directors to resign. … 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 markets and that taking 23andMe private will be the best opportunity for long-term success,” Ms. Wojcicki wrote, according to CNBC.
23andMe now wants to find new people to serve as independent directors on the company board.
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