In yet another setback for genetic testing company 23andMe, seven out of eight members of its board have resigned, leaving CEO Anne Wojcicki as the sole remaining board member. The resignation came after the independent directors revealed their dissatisfaction with the buyout offer presented by Wojcicki, stating that it did not meet the expectations of the non-affiliated shareholders.

The board members, including the CEO of YouTube, expressed their disappointment in a letter to Wojcicki, stating that despite months of negotiations, they had not received a fully financed and actionable proposal that served the best interests of the company's shareholders. This significant departure from the board undermines the company's stability and strategic decision-making process.

Wojcicki responded to the board members' resignation with surprise and disappointment. In a memo to employees reported by the Wall Street Journal, she emphasized her belief that taking the company private would be the best strategic move. She also stated her intention to search for new board members to fill the vacancies left by the resignations.

The CEO has been attempting to take 23andMe private since April, proposing to acquire all outstanding shares not owned by her or her affiliates for $0.40 a share in July. However, a special committee formed by the company rejected this offer, deeming it insufficient and not in the best interest of the non-affiliated shareholders. The committee also expressed hesitations about further extensions, with the company's board in agreement.

The lack of progress in reaching a satisfactory buyout offer led the directors to believe that no such proposal would be forthcoming. Earlier this month, Wojcicki opened the possibility of considering third-party takeover proposals, indicating a potential shift in the company's acquisition strategy.

The mass resignation of the board members has had a significant impact on 23andMe's financial standing. The company's share price plummeted to a new low of $0.30 in response to the news but managed to recover slightly to $0.35 the following day. Reports suggest that the company's value is now worth less than the cash it has in its reserves, leading financial publications to label 23andMe as a penny stock.

23andMe, best known for its saliva-based test kits that provide insights into genetic ancestry, went public in 2021. However, it has struggled to turn a profit since then and faces the risk of depleting its cash reserves entirely by next year. Additionally, the fallout from a recent hack that resulted in the theft of personal information from nearly 7 million users has further impacted the company's reputation and stability.

As 23andMe faces these challenges and with its board significantly diminished, the future of the company remains uncertain. It will be crucial for Wojcicki to swiftly address these resignations and reassess the company's acquisition plans to navigate the difficult times ahead.