In the fall of 23andMe.

What caused the company that was once worth $6 billion to lose 98% of its value and face delisting from the Nasdaq after all of its independent board members resigned in September?

In 2006, 23andMe aimed to disrupt the genetic testing industry by introducing a direct-to-consumer model. The company's success was due to the financial support of prominent investors and the endorsement of celebrities, which allowed them to offer their test kits at competitive prices.

Unlike other genealogy websites, 23andMe aimed to use its database for drug discovery. The company went public in 2021 and was valued at $3.5 billion. The funding helped 23andMe establish its drug research team and form partnerships with pharmaceutical companies.

"In 2021, 23andMe CEO Anne Wojcicki told CNBC that she was ready to explode and saw huge opportunities in therapeutics and the consumer business."

In 2023, 23andMe's share price dropped below $1 after the company reported a $312 million net loss in the fiscal year, despite introducing a premium subscription product in 2020 to compensate for the lack of recurring revenue from its test kits. The rise in interest rates shortly after the company's debut on the Nasdaq made it challenging to secure funding, which ultimately led to a decline in sales.

In October 2023, 23andMe faced both financial and privacy concerns, as hackers accessed the genetic data of nearly 7 million customers.

If 23andMe is sold or taken private, its database will not be open to third-party takeover proposals, as per Wojcicki's public statement.

The spokesperson stated in an email that Anne expressed her strong commitment to customer privacy and pledged to maintain the company's current privacy policy, even after the acquisition is completed.

In July, Wojcicki presented a plan to privatize the company, but it was turned down by a committee of directors because the offer did not offer a premium above the 40-cent share price at the time.

In September, 23andMe's independent directors resigned due to their frustration with Wojcicki's "different vision" for the company.

In order to remain listed on the Nasdaq, 23andMe must find new board members and maintain its share price above $1 by Nov. 4. To learn more, watch the video above.