by Rolfe Winkler at The Wall Street Journal
All seven independent directors of DNA-testing company 23andMe resigned Tuesday, following a protracted negotiation with founder and Chief Executive Anne Wojcicki over her plan to take the company private.
It is the latest challenge for 23andMe, which has struggled to find a profitable business model. The stock price fell to $0.30 per share after hours on Tuesday. At that price the company is worth less than the cash on its balance sheet.
In a letter addressed to Wojcicki, the directors wrote that “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.”
It is very rare for a publicly traded company to see so many directors resign simultaneously. The board members wrote that they differ with Wojcicki on the “strategic direction for the company” and because of her voting power, it was best that they resign.
Wojcicki controls 49% of 23andMe votes, giving her a level of control that blocked board members from shopping the company to other potential bidders. She is the only remaining board member after the resignations.
“I am surprised and disappointed by the decision of the directors to…