23andMe board members resign.

All seven independent directors of 23andMe’s board resigned on Tuesday, citing major disagreements over CEO Anne Wojcicki’s plan to take the company private.

With this mass departure, Wojcicki remains the sole board member, having co-founded the company in 2006 and currently serving as its CEO.

Wojcicki proposed the move to take 23andMe private in late July, following earlier interest in an acquisition in April. However, the board’s Special Committee turned down her proposal, indicating it did not offer a premium over the then-closing price of 40 cents per share and lacked assured financing. They had provided her with limited additional time to revise her plan.

In their resignation letter, the board members expressed their frustrations, stating, “After months of effort, we have yet to receive a fully financed, actionable proposal that serves the best interests of non-affiliated shareholders.” They noted that the lack of significant progress over the last five months led them to believe that no viable proposal was forthcoming, and they would not grant any further extensions.

The resigning directors, who generally opposed the privatization plan, emphasized that “it is clear we differ on the strategic direction for the Company.” They concluded that resigning was the best way to prevent ongoing distractions regarding the company’s future.

23andMe went public in 2021 via a special purpose acquisition company, initially valued at about $3.5 billion. Today, its market cap has dropped to below $200 million, closing at 34 cents per share on Tuesday.

Although the company enjoyed early success with at-home DNA testing kits, it has struggled to maintain consistent revenue since those purchases are typically one-time transactions. Following a deficiency notice from Nasdaq in November, which mandated a return to a share price above $1 within 180 days, the board formed the Special Committee to explore potential options.

In a memo to employees on Tuesday, Wojcicki expressed her surprise and disappointment over the resignations, reaffirming her commitment to the plan to take the company private. “I remain dedicated to our customers, employees, and stockholders,” she stated. “I believe that we will be better positioned for long-term success outside the pressures of public markets.”

She also mentioned that they would start the process of finding new independent directors and thanked the departing members for their contributions.