Cannell Capital LLC Urges Board of Directors of ContextLogic to Cease Operations and Return Company's Cash to Shareholders

Alta, Wyoming--(Newsfile Corp. - September 20, 2023) - J. Carlo Cannell, the Managing Member of Cannell Capital LLC, sent the following letter to CEO Jun "Joe" Yan of ContextLogic Inc. on September 19, 2023. ContextLogic Inc. operates the e-commerce website wish.com and the company's common stock trades on the Nasdaq Stock Market. Clients of Cannell Capital LLC own 3.1% of ContextLogic Inc. common stock.

A copy of Mr. Cannell's letter to Mr. Yan follows below.

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Mr. Jun "Joe" Yan

Chief Executive Officer
ContextLogic Inc.
One Sansome Street, 33^rd Floor
San Francisco, CA 94104

Dear Mr. Yan,

I am sorry that you canceled our video call scheduled for September 15. I do not believe that conveying the following by email is as effective or polite as in person or via video.

Since becoming a publicly traded entity in late 2020, ContextLogic Inc has generated abysmal results. Between February 1, 2021, and today $18.2 billion in market value has evaporated. During the preceding ten quarters it has burned $1.6 billion in cash flow from operations alone while insiders sold about $234 million. In the recent quarter alone, it burned $88 million. This is not sustainable. If not the most egregious example of wealth transfer and breach of duty of service to owners, it certainly is amongst the most egregious.

You are not going to remediate the business of WISH. I am not alone in this view. Spending $1 on this effort is $1 too much and breaches your fiduciary duty and further sullens your reputation and that of the Board.

WISH trades at a negative enterprise value of $430 million today. I believe the only viable path forward is for the Board to immediately announce and run a strategic review process with a credible advisor which process would, in my opinion and hope, result in the cessation of all operations and the return of cash to its owners which, as of June 30, 2023, would be $22.33 versus the current stock price of $4.25.¹

I expect, nay demand, the Board to address my concerns and move quickly to take the right steps on behalf of all shareholders. I will wait until 5 PM MDT on Wednesday September 27 for you to evidence action after which I, or others, reserve the right to form a Concerned WISH Shareholder Group to hold you and other directors accountable. Should such a group be formed we would, amongst other things, demand, and then disseminate select sections of the minutes from the Board meetings chronicling the historical destruction and accompanying self-enrichment by management and the Board.

Sincerely,

/s/
J. Carlo Cannell
Managing Member

CC: Mr. Tanzeen M. Syed, Chairman of the Board of Directors

CONTACT INFORMATION

Stephen C. Wagstaff
Chief Financial Officer
1-307-733-2284
scw@cannellcap.com

¹ Obviously, this would be reduced slightly by the friction associated with the cessation of operations and certain legal and professional expenses but owners would still benefit significantly from this sensible action if commenced quickly. Time is not on our side.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/181228