Wishpond Announces Closing of Sale of Viral Loops for $2.3 Million

Executive Summary

• Wishpond Technologies Ltd. closed the sale of its Viral Loops product to Emerge Commerce Ltd. for total cash consideration of $2.3 million.
• $2.1 million was received at closing; the remaining $200,000 is payable on the one‑year anniversary of closing.
• Approximately $1.6 million of the proceeds have been applied to repay the senior credit facility, significantly reducing outstanding debt and enhancing financial flexibility.

Key Details

• Transaction Value: $2,300,000 cash total consideration.
• Payment Schedule: $2,100,000 paid at closing (March 9 2026); $200,000 payable on the one‑year anniversary of closing.
• Use of Proceeds:
• $1,600,000 applied to repayment of senior credit facility.
• Remaining proceeds allocated to working capital requirements.
• Impact on Business: Divestiture is not expected to materially affect Wishpond’s core AI‑enabled marketing platform or broader strategic initiatives.
• Forbearance Agreement: In connection with the transaction, Wishpond entered a forbearance agreement with its senior lender (National Bank of Canada) that limits the lender’s rights under the credit facility through December 31 2026, subject to customary conditions and application of proceeds toward debt repayment.
• Arm’s‑Length Transaction: No finder's fees were paid; transaction conducted at arm’s length.

Notable Quotes

“Closing the sale of Viral Loops represents an important step in strengthening Wishpond's balance sheet and enhancing our financial flexibility. By reducing debt and reallocating capital toward our core AI-driven marketing platform, we are positioning the Company to focus on innovation and long‑term growth across our integrated product suite.” – Ali Tajskandar, Chairman and CEO

Materiality Assessment: Material – Positive (significant debt reduction and improved liquidity).