On Tuesday, the independent directors of the Board of 23andMe Holding Co. (NASDAQ:ME) sent a letter to Anne Wojcicki, Chief Executive Officer, Co-Founder, and Chair of the Board of Directors of 23andMe, providing their resignation, effective immediately.
The board said, “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 non-affiliated shareholders. We believe the Special Committee and the Board have provided ample time for you to submit such a proposal. That we have not seen any notable progress over the last 5 months leads us to believe no such proposal is forthcoming. The Special Committee is therefore unwilling to consider further extensions…”
In April, Anne Wojcicki started contemplating taking the genetics testing company private.
Founded in 2006, 23andMe went public in 2021 via a merger with a special purpose acquisition company, a deal that valued 23andMe at around $3.5 billion. The company witnessed a significant decline in its valuation, once at $6 billion.
Wojcicki, the former spouse of Google founder Sergey Brin, emphasized her opposition to any other buyer acquiring the company.
Wojcicki had initially said it plans to take the company private at 40 cents per share. In August, the Special Committee rejected and, in a letter, said, “We are disappointed with the proposal for multiple reasons, including because it provides no premium, it lacks committed financing, and it is conditional in nature.”
“Therefore, we are not prepared to move forward under the terms provided. Importantly, we request that you immediately withdraw your stated intent to oppose any alternative transaction so that we can fully assess whether there is interest from third parties in a transaction that would maximize value for all shareholders.”
Bloomberg report highlighted that Anne Wojcicki reaffirmed her commitment to privatizing the company.
In a memo obtained by Bloomberg News, Wojcicki expressed her belief that operating outside the constraints of public markets would better align with the company’s long-term mission and goals, stating, “I remain convinced that taking 23andMe private presents the best path to achieving sustainable success.”
She said she would start identifying new board members immediately.
Price Action: ME stock closed at $0.34 on Tuesday.
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This article Independent Board Members Of Penny Stock 23andMe Resign, Call Out CEO Anne Wojcicki For Not ‘Actionable Proposal’ Despite Ample Time originally appeared on Benzinga.com
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