Independent Directors of 23andMe Resign from Board
The independent directors of 23andMe Holding Co. (Nasdaq: ME) have resigned from the Board, effective immediately. In a letter to CEO Anne Wojcicki, they cited the lack of a fully financed, fully diligenced, actionable proposal that benefits non-affiliated shareholders, despite months of work. The directors expressed their unwillingness to consider further extensions and noted differences in strategic direction for the company.
The resignation comes after 5 months of no notable progress on such a proposal. The directors acknowledged Wojcicki's concentrated voting power and decided to resign to avoid a protracted and distracting difference of view. They expressed continued support for the company's mission and belief in its personalized health and wellness offering, while also recognizing their pride in 23andMe's achievements in pioneering direct access to genetic information.
I direttori indipendenti di 23andMe Holding Co. (Nasdaq: ME) si sono dimessi dal Consiglio, con effetto immediato. In una lettera indirizzata alla CEO Anne Wojcicki, hanno citato la mancanza di una proposta attuabile, completamente finanziata e diligentemente valutata che avvantaggi gli azionisti non affiliati, nonostante mesi di lavoro. I direttori hanno espresso la loro non disponibilità a considerare ulteriori proroghe e hanno notato differenze nella direzione strategica dell'azienda.
Le dimissioni arrivano dopo 5 mesi senza progressi significativi su tale proposta. I direttori hanno riconosciuto il potere di voto concentrato di Wojcicki e hanno deciso di dimettersi per evitare una prolungata e distratta divergenza di opinioni. Hanno espresso continuo supporto per la missione dell'azienda e fiducia nella sua offerta personalizzata di salute e benessere, riconoscendo anche il loro orgoglio per i traguardi di 23andMe nell'aprire l'accesso diretto alle informazioni genetiche.
Los directores independientes de 23andMe Holding Co. (Nasdaq: ME) han renunciado a la Junta, con efecto inmediato. En una carta al CEO Anne Wojcicki, citaron la falta de una propuesta completamente financiada, debidamente diligenciada y accionable que beneficie a los accionistas no afiliados, a pesar de meses de trabajo. Los directores expresaron su involuntariedad para considerar extensiones adicionales y señalaron diferencias en la dirección estratégica de la empresa.
La renuncia se produce tras 5 meses sin avances significativos en dicha propuesta. Los directores reconocieron el poder de voto concentrado de Wojcicki y decidieron renunciar para evitar una diferencia de opinión prolongada y distractiva. Expresaron su continuo apoyo a la misión de la empresa y su creencia en su oferta de salud y bienestar personalizada, al tiempo que también reconocieron su orgullo por los logros de 23andMe en el acceso directo a la información genética.
23andMe 홀딩스 (Nasdaq: ME)의 독립 이사들이 즉시 발효되는 이사회에서 사임했습니다. 앤 우지키 CEO에게 보낸 편지에서 그들은 비소속 주주에게 혜택을 주는 완전히 자금이 조달되고, 충분히 실사를 거쳤으며, 실행 가능한 제안이 없음을 지적했습니다. 이사들은 추가 연장을 고려할 의사가 없다고 밝혔으며, 회사의 전략적 방향성에 대한 차이점을 강조했습니다.
사임 소식은 5개월간 별다른 진전이 없던 제안 이후에 나왔습니다. 이사들은 우지키의 집중된 투표권을 인정하고, 장기적이고 주의를 산만하게 하는 의견 차이를 피하기 위해 사임하기로 결정했습니다. 그들은 회사의 사명에 대한 지속적인 지지와 개인화된 건강 및 웰빙 서비스에 대한 신뢰를 표명했으며, 23andMe의 유전 정보에 대한 직접 접근을 개척한 것을 자랑스럽게 여겼습니다.
Les administrateurs indépendants de 23andMe Holding Co. (Nasdaq: ME) ont démissionné du conseil d'administration avec effet immédiat. Dans une lettre adressée à la CEO Anne Wojcicki, ils ont cité l'absence d'une proposition pleinement financée, dûment diligencée et actionable qui bénéficie aux actionnaires non affiliés, malgré des mois de travail. Les administrateurs ont exprimé leur réticence à envisager d'autres prolongations et ont noté des différences dans la direction stratégique de l'entreprise.
Cette démission intervient après 5 mois sans progrès significatif concernant une telle proposition. Les administrateurs ont reconnu le pouvoir de vote concentré de Wojcicki et ont choisi de démissionner pour éviter une différence d'opinion prolongée et distrayante. Ils ont exprimé leur soutien continu à la mission de l'entreprise et leur foi en son offre de santé et de bien-être personnalisée, tout en reconnaissant leur fierté pour les réalisations de 23andMe dans l'accès direct à l'information génétique.
Die unabhängigen Direktoren von 23andMe Holding Co. (Nasdaq: ME) haben mit sofortiger Wirkung aus dem Vorstand resigniert. In einem Schreiben an die CEO Anne Wojcicki verwiesen sie auf das Fehlen eines vollständig finanzierten, vollständig geprüften und umsetzbaren Vorschlags, der nicht-affilierten Aktionären zugutekommt, trotz monatelanger Arbeit. Die Direktoren äußerten ihre Unwilligkeit, weitere Verlängerungen in Betracht zu ziehen und hoben die Unterschiede in der strategischen Ausrichtung des Unternehmens hervor.
Die Rücktrittserklärung erfolgt nach 5 Monaten ohne nennenswerten Fortschritt bei einem solchen Vorschlag. Die Direktoren anerkannten den gebündelten Einfluss von Wojcicki und entschieden sich zu resignieren, um eine langwierige und ablenkende Meinungsverschiedenheit zu vermeiden. Sie bekundeten ihre fortdauernde Unterstützung für die Mission des Unternehmens und ihren Glauben an dessen personalisierten Gesundheits- und Wellnessangebot, während sie auch ihren Stolz auf die Errungenschaften von 23andMe anerkannten, die den direkten Zugang zu genetischen Informationen ermöglichten.
- The company maintains its mission in personalized health and wellness offerings
- 23andMe has achieved success in pioneering direct access to genetic information
- All independent directors have resigned from the Board, effective immediately
- Lack of a fully financed, fully diligenced, actionable proposal for non-affiliated shareholders
- No notable progress on strategic proposals over the last 5 months
- Differences in strategic direction between independent directors and CEO
- Potential for corporate governance issues due to CEO's concentrated voting power
The mass resignation of independent directors from 23andMe's board is a significant corporate governance event that raises serious concerns about the company's leadership and strategic direction. This move suggests a deep rift between the CEO and the independent directors, potentially stemming from disagreements over a proposed transaction or future strategy.
The letter's mention of a "fully financed, fully diligenced, actionable proposal" hints at a possible take-private attempt or major restructuring that hasn't materialized. The reference to Anne Wojcicki's "concentrated voting power" underscores the challenges of dual-class share structures in public companies, where founders can maintain control despite owning a minority of shares.
This situation could lead to increased scrutiny from regulators and shareholders, potentially impacting the company's governance rating and investor confidence. The lack of independent oversight may also raise concerns about checks and balances in decision-making processes, which could affect the company's long-term stability and growth prospects.
The sudden departure of all independent directors is likely to have a negative impact on 23andMe's stock price in the short term. This event signals internal turmoil and uncertainty about the company's future direction, which typically leads to increased volatility and potential selloffs.
Investors may interpret this as a red flag for corporate governance, potentially leading to a reassessment of the company's risk profile. The mention of a proposal that hasn't materialized suggests possible disagreements over financial decisions or strategic investments, which could affect the company's growth trajectory and valuation.
Moreover, the lack of independent oversight might raise concerns among institutional investors, potentially leading to reduced institutional ownership or increased activist investor activity. This situation could also complicate future capital raising efforts and impact the company's ability to pursue strategic partnerships or acquisitions.
The mass resignation of independent directors raises significant legal and regulatory concerns for 23andMe. Public companies are generally required to maintain a certain number of independent directors on their board to ensure proper oversight and protect shareholder interests. This situation could potentially put the company in violation of Nasdaq listing requirements.
The letter's content suggests potential conflicts of interest and fiduciary duty issues. The reference to a proposal "in the best interests of the non-affiliated shareholders" implies that there may be concerns about the CEO's actions favoring her interests over those of other shareholders. This could expose the company to shareholder lawsuits or regulatory investigations.
Furthermore, the sudden lack of independent oversight may trigger SEC scrutiny, particularly regarding the company's financial reporting and internal controls. 23andMe will need to quickly address this governance vacuum to mitigate legal risks and maintain compliance with securities regulations.
SOUTH SAN FRANCISCO, Calif., Sept. 17, 2024 (GLOBE NEWSWIRE) -- The independent directors of the Board of 23andMe Holding Co. (Nasdaq: ME), today sent the following letter to Anne Wojcicki, Chief Executive Officer, Co-Founder, and Chair of the Board of Directors of 23andMe, in which the independent directors have provided their resignation from the Board, effective immediately:
Dear Anne,
We, the independent directors of the 23andMe Board, hereby tender our resignations, effective immediately.
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, and the Board agrees with the Special Committee’s determination.
While we continue to wholeheartedly support the Company’s mission and believe deeply in the value of the personalized health and wellness offering that you have articulated, it is also clear that we differ on the strategic direction for the Company going forward. Because of that difference and because of your concentrated voting power, we believe that it is in the best interests of the Company’s shareholders that we resign from the Board rather than have a protracted and distracting difference of view with you as to the direction of the Company.
We are proud of what 23andMe has achieved in pioneering direct access to genetic information, and we have been honored to have had the opportunity to be part of those efforts.
Sincerely,
/s/
Roelof Botha, Patrick Chung, Sandra Hernández, M.D., Neal Mohan, Valerie Montgomery Rice M.D., Richard Scheller, Ph.D., Peter J. Taylor
About 23andMe
23andMe is a genetics-led consumer healthcare and biopharmaceutical company empowering a healthier future. For more information, please visit www.23andMe.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding 23andMe’s strategy, are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," “predicts,” "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, 23andMe undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.
Contact
Adam Pollack
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
FAQ
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