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23andMe shareholders approve reverse stock split

Published 27/08/2024, 21:24
ME
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In a recent 8-K filing, 23andMe Holding Co. (NASDAQ:ME) announced the outcomes of the voting on several key proposals during its Annual Meeting of Stockholders held on Monday. The meeting, conducted remotely, led to the approval of all items on the agenda, including the election of directors, executive compensation, and a reverse stock split.

Both Class III director nominees, Anne Wojcicki and Peter Taylor, were re-elected to the company's Board of Directors to serve until the 2027 Annual Meeting of Stockholders. The votes cast for Taylor were 1,661,030,885 in favor and 12,697,005 withheld, with Wojcicki receiving 1,649,447,755 for and 24,280,135 withheld. There were 116,785,176 broker non-votes for each director.

The non-binding advisory vote on the fiscal 2024 compensation for the company's named executive officers received approval with 1,656,420,344 votes for, 16,015,988 against, and 1,291,558 abstentions. There were also 116,785,176 broker non-votes on this proposal.

A significant development was the stockholders' approval of a reverse stock split, which would consolidate outstanding shares of Class A and Class B common stock by a ratio of not less than one-for-five and not more than one-for-thirty.

The exact ratio will be determined by the Board at their discretion. This proposal passed with 1,762,346,135 votes for, 26,674,305 against, and 1,492,626 abstentions.

Furthermore, stockholders ratified the selection of KPMG LLP as the company's independent registered public accounting firm for the fiscal year ending March 31, 2025. This proposal was overwhelmingly approved with 1,779,449,670 votes for, 6,579,667 against, and 4,483,729 abstentions.

The press release statement serves as the source for this information, which reflects the company's commitment to corporate governance and transparency in its operations. The approval of the reverse stock split is particularly noteworthy as it may affect the stock's marketability and capital structure.

The company's Chief Financial and Accounting Officer, Joseph Selsavage, signed off on the report filed on Tuesday.

In other recent news, 23andMe Holding Co. disclosed its Q1 2025 financial outcomes, reporting a revenue of $40 million, a 34% decrease from the previous year.

This decline is primarily attributed to the conclusion of a collaboration with GSK (LON:GSK). However, the company's net loss for the quarter was $69 million, showing improvement from the $105 million loss reported in the same period last year. Despite decreased revenue, 23andMe noted positive trends in membership revenue growth, member retention, and lifetime value (LTV) in telehealth services.

As part of their ongoing efforts, the company has initiated a large-scale genetic study and is developing AI models to enhance its consumer and research data businesses. 23andMe is also preparing to launch its Total Health service for existing customers and is actively discussing strategies to drive revenue growth.

While the company continues to navigate the challenges of a post-collaboration landscape, it remains optimistic about the future of its genetic services and their impact on human health. These are recent developments that investors should keep an eye on.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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