Key Summary: On September 19, 2023, Cannell Capital sent a letter to the CEO expressing concerns over the company's poor performance since its late 2020 IPO, significant market value decline, and cash flow losses, suggesting a strategic review and cash return to shareholders. On September 28, 2023, Cannell Capital formed "Rescue WISH" to support shareholders, criticizing the board for issuing optimistic guidance and failing to protect shareholder assets. On October 10, 2023, Rescue WISH urged the Board to sell money-losing operations and return cash to shareholders. On November 11, 2023, Rescue WISH criticized the Board for inaction and raised governance concerns.Market Cap: $119 million | ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally.
On September 19, 2023, Cannell Capital addressed a letter to the CEO of the company expressing concerns about the company's poor performance since going public in late 2020, with a significant market value decline of $18.2 billion and substantial cash flow losses. He called for a strategic review process, suggesting the cessation of operations and the return of cash to shareholders, citing a negative enterprise value and a stock price well below the potential cash return. Mr. Cannell urged the board to take action promptly and warned of the formation of a Concerned WISH Shareholder Group if necessary.
On September 28, 2023, Cannell Capital formed "Rescue WISH" to support injured shareholders. Rescue WISH aimed to highlight the failures of the current board, alleging that they issued optimistic guidance to boost stock prices while some members and affiliates sold stock. They also argued that the board should have protected the $531 million in cash and marketable securities, which belong to shareholders. Rescue WISH insisted that the board lacks the confidence of many shareholders and called for a reconstitution of the board with members selected by shareholders. Source
On October 10, 2023, Rescue WISH called upon the Board to sell its money-losing operating businesses and return most of the remaining cash to shareholders. Source
On November 11, 2023, Rescue WISH criticized the Board for inaction on returning cash to shareholders. They highlighted board members' shortcomings and interconnected affiliations, raising governance concerns at the company. Source
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