Shareholders of ContextLogic Seek Return of Cash

Alta, Wyoming--(Newsfile Corp. - October 10, 2023) - Cannell Capital LLC, through its organization Rescue WISH, releases the following statement:  

David Pointer, the Chairman of Rescue WISH, today called upon the Board of Directors of ContextLogic Inc. to sell its money-losing operating businesses and return most of the remaining cash to shareholders.

Mr. Pointer noted that the incumbent Board of Directors of ContextLogic may have a conflict of interest with its shareholders. The Proxy Statement released in March 2023 stated the following: "Commencing as of the conclusion of the 2023 Annual Meeting, each non-employee director will receive an annual retainer of $150,000. The annual retainer will be paid quarterly, with 1/4^th of the cash retainer paid on the date of the regular annual meeting of stockholders and an additional 1/4^th will be paid every three months thereafter."

ContextLogic appears to have burned more than $1 billion dollars of shareholder capital. While this capital was being destroyed, insiders at ContextLogic appear to have sold a substantial number of shares of stock.

It may be in the best interest of all shareholders to have cash returned to shareholders. But the return of cash to shareholders may prevent non-employee directors from continuing to receive the $150,000 a year in cash that they are now receiving. The incumbent Board's desire to continue to receive the $150,000 a year in cash payments may create an incentive for the incumbent Board to not return cash to shareholders.

Rescue WISH is investigating potential conflicts of interest.

CONTACT INFORMATION

Rescue WISH
David Pointer, Chairman
(509) 319-2345
https://www.rescuecontextlogic.com/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/183571