(Bloomberg) -- 23andMe Holding Co. co-founder and Chief Executive Officer Anne Wojcicki told employees that she remains committed to taking the genetic testing company private following the resignation of its independent board members.
“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,” Wojcicki said in a memo that was reviewed by Bloomberg News.
“We will immediately begin identifying independent directors to join the board,” said Wojcicki, who is also the board’s chair and now its only remaining member.
In July, Wojcicki offered to take the company private for 40 cents a share.
A special committee of 23andMe’s board formed to explore deals said in August it wasn’t “prepared to move forward” with Wojcicki’s offer, saying it was “disappointed” because the proposal failed to include a premium to the company’s share price at the time and also lacked financing commitments.
According to a statement Tuesday, the board’s seven independent directors resigned effective immediately. Those members included Sequoia Capital partner Roelof Botha, who has served on more than a dozen boards, including those of Block Inc. and Unity Software Inc.
“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,” the seven said in a letter to Wojcicki according to the statement. “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 five months leads us to believe no such proposal is forthcoming.”
A representative for the former board members declined to comment on Wojcicki’s memo.
The company’s shares have fallen 63% this year. They closed at 34 cents apiece Tuesday, giving the California-based company a market value of $173 million.
When 23andMe agreed to go public in 2021 via a merger with a special purpose acquisition company founded by billionaire Richard Branson, it was valued at $3.5 billion.
Since then, sales of DNA testing kits have slowed and the company has pivoted to offering subscription products in hopes of creating repeat customers for its consumer business. So far that business hasn’t generated the number of sign-ups the company had initially anticipated.
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