SAN FRANCISCO - ContextLogic Inc. (NASDAQ: WISH), known as Wish, announced the approval of its asset sale to Qoo10 Pte. Ltd. by its stockholders at a Special Meeting held on Thursday.
The transaction, valued at approximately $173 million in cash, is expected to close today, with Rishi Bajaj set to take over as CEO and Chairman of the Board.
Approximately 51.5% of ContextLogic's outstanding shares voted in favor of the sale, with 97% of those votes endorsing the transaction. The deal involves the sale of Wish's e-commerce platform and associated operating assets and liabilities to Qoo10. Following the closure, ContextLogic will retain around $161 million in cash, including the net proceeds from the sale.
The company is also slated to adopt a new Nasdaq ticker symbol, LOGC, within a month after the asset sale concludes. J.P. Morgan Securities LLC served as the financial advisor, and Sidley Austin LLP was the legal counsel for the transaction.
The final voting results of the Special Meeting will be disclosed in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission. This sale marks a pivotal move for ContextLogic, as it seeks to maximize the value of the company's Net Operating Losses (NOLs) for its stockholders, as stated by the incoming CEO, Rishi Bajaj.
Wish, established in 2010, has grown into a significant global e-commerce platform, offering an affordable and engaging shopping experience to consumers worldwide. The platform leverages technology and data science to provide a personalized shopping experience.
This news article is based on a press release statement from ContextLogic Inc.
InvestingPro Insights
As ContextLogic Inc. (WISH) moves forward with its asset sale to Qoo10, insights from InvestingPro provide a deeper understanding of the company's financial position. Despite the strategic move, ContextLogic's stock has experienced significant volatility, which is reflected in its price movements. According to InvestingPro Tips, WISH has seen a strong return over the last week, with a 14.8% price total return, and an impressive 45.69% price uptick over the last six months, highlighting a period of robust performance.
InvestingPro Data further reveals the company's current market capitalization stands at a modest $140.04 million, with a negative price-to-earnings (P/E) ratio of -0.42, indicating that investors are not expecting immediate profitability. Moreover, with a revenue decline of 49.74% over the last twelve months as of Q1 2023, it's clear that the company is facing challenges in generating sales growth.
For those interested in a deeper dive into ContextLogic's financial health and future prospects, InvestingPro offers additional tips. Currently, there are 15 additional InvestingPro Tips available, which could provide valuable insights for investors considering the company's stock. To access these tips and other detailed analytics, visit InvestingPro and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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