Days after proposing to settle an information 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 by way of a pointed letter addressed to CEO Anne Wojcicki, who’s now the one remaining member of the board.
The resigning administrators, amongst whom had been YouTube CEO Neal Mohan and Sequoia VC Roelof Botha, known as out Wojcicki for not submitting a “totally financed, totally diligenced, actionable proposal” to take the corporate personal over the previous 5 months. They wrote that their strategic route for 23andMe was completely different from Wojcicki’s.
“Due to that distinction and due to your concentrated voting energy, we consider that it’s in the most effective pursuits of the Firm’s shareholders that we resign from the Board relatively than have a protracted and distracting distinction of view with you as to the route of the Firm,” they said.
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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 personal. A particular committee created by the corporate rejected her proposal, stating that it wasn’t in the most effective pursuits of shareholders.
Anne Wojcicki. Credit score: Kyle Grillot/Bloomberg through Getty Pictures
Wojcicki advised workers in a memo on Tuesday that she was “shocked and disillusioned” by the resignations and would instantly start discovering alternative administrators. She said that “taking 23andMe personal would be the greatest 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 deliver its inventory value as much as at the least $1 per share or danger being delisted.
23andMe has confronted quite a few public setbacks, together with an information breach in October that impacted almost 7 million accounts and appeared to focus on folks with Chinese language or Ashkenazi Jewish ancestry. Prospects 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 trade for genetic insights. A $199 package advertises well being predisposition experiences. The corporate can also be growing medication in-house and testing them.