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

Core Viewpoint - Wishpond Technologies Ltd. has successfully completed the sale of its Viral Loops product to Emerge Commerce Ltd. for $2.3 million, which is aimed at strengthening its balance sheet and enhancing financial flexibility [1]. Financial Transaction Details - The total cash consideration for the sale of Viral Loops is $2,300,000, with $2,100,000 received at closing and the remaining $200,000 payable on the one-year anniversary of closing [1]. - Approximately $1.6 million of the proceeds will be used to repay the senior credit facility, significantly reducing the company's outstanding debt [1]. Strategic Implications - The divestiture of Viral Loops is not expected to materially impact Wishpond's core AI-enabled marketing and sales platform or its broader strategic initiatives [1]. - The company aims to reallocate capital towards its core AI-driven marketing platform, focusing on innovation and long-term growth [1]. Forbearance Agreement - In connection with the transaction, Wishpond has entered into a forbearance agreement with its senior lender, National Bank of Canada, which allows the lender to forbear from exercising certain rights under the credit facility until December 31, 2026, subject to customary conditions [1].