All 23andMe board members except CEO resign over lack of suitable takeover offers | Technology

Seven of the eight members of 23andMe’s board of directors have resigned, dealing another blow to the ailing genetics company. The CEO is now the only remaining member.

The independent directors of the genetic testing firm said in a statement: Letter published on Tuesday who left the company’s board of directors after failing to receive a satisfactory takeover offer from CEO Anne Wojcicki.

“After months of work, we have not yet received from you a fully funded, fully diligent and viable proposal that is in the best interests of unaffiliated shareholders,” the seven directors, including YouTube’s CEO, said in a letter to the company’s co-founder and CEO.

In a memo to employees reported by The Wall Street JournalWojcicki responded: “I am surprised and disappointed by the directors’ decision to resign.” She maintained that taking the company private remained its best strategic option and said she would conduct a search for new board members.

Wojcicki, who has been trying to take the company private since April, had proposed in July to acquire all outstanding shares of 23andMe that were not owned by her or her subsidiaries for $0.40 per share. She controls 49% of the company’s voting shares.

A special committee formed by the company rejected the proposal, calling it insufficient and not in the best interest of unaffiliated shareholders. They also said the special committee was not willing to consider further extensions and that the company’s board agreed to that.

“The fact that we have not seen any notable progress over the past five months leads us to believe that there will not be any such proposal,” the directors added. Earlier this month, Wojcicki said she would be open to considering third-party takeover proposals for the company.

23andMe’s stock price fell to a new low of $0.30 in response to the mass board resignation, rebounding to $0.35 the next day. According to the WSJ, the company is now worth less than the cash it has in its reserves. Financial publications have started calling 23andMe a penny stock.

23andMe, known for its saliva-based testing kits that offer users insight into their genetic ancestry, went public in 2021. It has never turned a profit since, and the company is at risk of completely depleting its cash reserves next year. Throughout 2023 and 2024, 23andMe has also had to deal with the fallout from a disastrous hack in which the personal information of nearly 7 million users was stolen.